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Phillips Breaks Ground on Low-Sulfur Gasoline Facility

2 March 2000

Phillips Breaks Ground on Low-Sulfur Gasoline Facility

    BORGER, Texas--March 1, 2000--

Semi-Commercial Unit in Borger, Texas, to Feature
Company's S Zorb Sulfur-Removal Process

    Officials of Phillips Petroleum Company today broke ground on a semi-commercial facility that will demonstrate the company's breakthrough S Zorb sulfur-removal process.
    Bill Parker, Phillips' executive vice president of downstream, along with TNRCC Regional Director Brad Jones and Borger Mayor Judy Flanders, turned the first spade of earth where the 6,000-barrels-per-day unit will be built at Phillips' refinery and natural gas liquids center north of town. Start-up is scheduled for early 2001.
    The unit will show potential licensees how the S Zorb sulfur-removal process significantly lowers sulfur content in gasoline. It also will help position the Borger refinery for low-sulfur gasoline compliance and could help generate sulfur credits under new federal regulations.
    "This facility will produce a new generation of gasoline that results in cleaner air at lower costs than gasoline made with conventional desulfurization processes," said Brian Evans, fuels technology manager. "As we scale up the new S Zorb sulfur-removal process, we're confident the technology will address the demands of refiners, automakers and the public in meeting newly issued regulations for reduced sulfur content in gasoline."
    Late last year the Environmental Protection Agency issued its final rule on sulfur content in gasoline, requiring that gasoline contain no more than 30 parts per million (ppm) of sulfur by 2005. The current average sulfur content of gasoline in the United States is 340 ppm. Sulfur in gasoline can hurt the performance of catalytic converters, which help cars burn fuel cleanly.
    Phillips introduced the S Zorb sulfur-removal process last summer, then announced it would scale up the new technology with a semi-commercial facility in Borger.
    The Phillips technology uses a regenerative sorbent that chemically attracts sulfur and removes it from gasoline. Conventional technologies can result in a significant loss of octane and volume in the manufacturing process. But the S Zorb sulfur-removal process, which costs no more to implement, has little octane loss and very low volume loss. The sorbent material can be regenerated while the unit is operating, allowing for prolonged run times between shutdowns. As an additional advantage, the process consumes very little hydrogen, a scarce resource in many refineries.
    Phillips' decision to build the unit at Borger is strategic -- and rooted in the company's history, according to Parker. "Borger is where we bought and operated our first refinery as we prepared to introduce Phillips 66 gasoline to the motoring public," he said. "And Borger is where we'll launch a new generation of gasolines that are very low in sulfur content and very high in performance standards."
    Phillips scientists have developed revolutionary refining technologies for more than 50 years. In 1942, using HF alkylation, they produced 100-plus-octane aviation fuel that gave U.S. and British war planes quicker liftoff, more power and greater efficiency. And in 1970 they developed metals passivation, a process that increased gasoline production at a time when U.S. motorists were demonstrating an insatiable thirst for fuel. Today, these breakthrough processes are used in refineries around the world.
    For information on licensing the S Zorb sulfur-removal process, call 918/661-0621 or 918/661-3693. Or visit the S Zorb Web site from Phillips' home page at www.phillips66.com.
    Phillips is an integrated petroleum company engaged in oil and gas exploration and production worldwide; gas gathering, processing and marketing in the United States; refining, marketing and transportation operations primarily in the United States; chemicals and plastics manufacturing and sales around the globe; and technology development. Founded in Bartlesville, Okla., in 1917, the company had 15,900 employees and $15 billion of assets at the end of 1999, and $14 billion of revenues for the year.