Excellence Refined - 30 Years - Valero

Excellence Refined - 30 Years - Valero Excellence Refined - 30 Years - Valero

10.02.2014 Views

In its lifetime, Valero has invested $19.5 billion to improve its refineries. Since 1997, Valero has spent $5.4 billion on regulatory and environmental compliance. The safety mission continues today. Since 2004, Valero’s refining system’s total recordable incident rate (TRIR) average of 0.89 per 200,000 working hours has beaten industry averages. Environmental excellence is not only good ethics, it’s also good business. —— 1996 Valero Summary Annual Report In the early 1980s, Valero recognized that a worldwide movement toward cleaner fuels was on the horizon. Long before most refineries sensed the move toward reformulated gasoline and emissions controls, the company was busy developing a strategy to meet those new demands. As the company has grown, it has remained at the forefront of this clean-fuels movement. Twenty-eight years after purchasing the property, Valero’s largest and most visible commitment to environmental stewardship is its Corpus Christi Refinery complex, renamed the Bill Greehey Refinery in 2006. Valero invested $535 million to construct a refinery that would take the lowest-grade feedstocks and turn them into premium, clean-burning fuels. The upgrade was no easy task, but by its completion in 1984, the refinery aptly produced a full slate of unleaded gasoline – years before it became a federal requirement to produce 100 percent unleaded fuel. The Clean Air Act of 1990 – at the time, the most allencompassing piece of legislation in U.S. history – became law with the hope of improving the nation’s air quality by tightening fuel specifications. The act mandated the use of cleaner-burning, “reformulated” gasoline (RFG) in the nation’s most polluted cities by 1995. But RFG had a higher oxygen content, which required dramatic changes to refining processes at significant costs to refiners. Because of its investments during the previous decade, however, Valero already was a leader in providing cleanerburning fuels, both in the U.S. and internationally. In February 1992, the company dedicated its $290 million Hydrocracker and Naphtha Reformer units at the Corpus Christi facility. More than 120 energy industry officials, dignitaries and media attended, taking tours of the plant and learning more about the project’s environmental importance. These units increased the company’s production of gasoline and gasoline-related products from 70 percent to 85 percent of total throughput. Years later, Valero would become the first refiner outside the state of California to produce and supply California Air Resources Board (CARB) gasoline, a blend of gasoline that meets California’s stringent clean fuels standards. In the mid-1990s, Valero voluntarily added $40 million in additional environmental initiatives. A marine vapor recovery unit was added to capture vapors as gasoline was loaded onto ships and recycle them back into the refining process, equating to millions of gallons per year. A Belco scrubber was built to significantly reduce emissions – more than 40 percent below EPA standards – and became a staple at many of Valero’s refineries today. Such voluntary initiatives helped earn Valero the highest environmental award in Texas, the 1995 Governor’s Award for Environmental Excellence, presented by then- Texas Governor George W. Bush. The Houston and Texas City refineries acquired by Valero in the Basis acquisition in 1997 were both “grandfathered” with regard to state environmental permitting laws. Valero, however, committed to dramatically reducing emissions from the plants anyway, by installing $60 million in emission-control technology. The upgrades promised to reduce emissions from the two facilities Safety & Environmental 40

In 2008, the Valero St. Charles refinery earned a statewide recognition for environmental excellence. Refinery initiatives including a pollution-prevention program, a computer recycling project and an environmental management system were recognized in April 2008 as part of the state’s Environmental Leadership Program. by approximately 40 percent. Nine other companies eventually followed Valero’s lead, but then-Governor Bush, impressed with Valero’s leadership and commitment, used the Valero Houston Refinery as a backdrop for a press conference to announce the voluntary program. “These 10 companies, working with state environmental leaders, are taking responsibility for cleaner air,” Bush said at the press conference. “By voluntarily receiving state air permits for their older facilities and installing modern emissions control technology, these companies will reduce air pollution by an estimated 10,000 tons a year.” Environmental initiatives at the refineries also helped the Valero Houston and Texas City plants join the Bill Greehey refinery in the Texas Clean Industries 2000 program that called for industrial plants to reduce their emissions by 50 percent between 1995 and 2000. In the summer of 2003, Valero acquired not only its St. Charles Refinery but also a host of environmental ailments at the plant. The refinery had not been wellmaintained and was plagued by problems. Addressing safety and the environment first, Valero dramatically improved the plant’s ecological profile – so dramatic, in fact, that the refinery earned Valero’s first “Chairman’s Award for Environmental Excellence” in February 2005. The inaugural award was and continues to be given to the refinery with the best overall environmental performance. Valero continued to contribute to clean energy with the completed construction of a 50-megawatt wind farm near its McKee Refinery in the Texas Panhandle. In total, 33 GE wind turbines operate just outside the refinery and supply energy to the plant. Construction of the first six turbines began in mid-October 2008, and took approximately two months to complete. Sales to a local utility began shortly thereafter. Since the wind farm replaced electricity generated from fossil fuels, it instantly helped reduce Valero’s carbon footprint – a primary objective of the project. “Initiatives like our wind farm help to make us an industry leader in environmental stewardship,” said Kirk Saffell, Vice President of Environment and Safety. The open land around the McKee Refinery made it ideal for construction of the 250-foot wind turbines, with prevailing winds capable of providing a steady supply of electricity. Today, the company has a full department dedicated to Alternative Fuels. And the acquisition of nine ethanol plants, with one acquisition pending in 2010, has opened new ventures for the company in clean-fuel technology. 41 Valero Lines 3oth anniversary edition

In 2008, the <strong>Valero</strong> St. Charles refinery earned a statewide recognition for environmental excellence. Refinery initiatives including a pollution-prevention program, a<br />

computer recycling project and an environmental management system were recognized in April 2008 as part of the state’s Environmental Leadership Program.<br />

by approximately 40 percent. Nine other companies<br />

eventually followed <strong>Valero</strong>’s lead, but then-Governor Bush,<br />

impressed with <strong>Valero</strong>’s leadership and commitment,<br />

used the <strong>Valero</strong> Houston Refinery as a backdrop for a<br />

press conference to announce the voluntary program.<br />

“These 10 companies, working with state environmental<br />

leaders, are taking responsibility for cleaner air,” Bush<br />

said at the press conference. “By voluntarily receiving<br />

state air permits for their older facilities and installing<br />

modern emissions control technology, these companies<br />

will reduce air pollution by an estimated 10,000 tons<br />

a year.” Environmental initiatives at the refineries also<br />

helped the <strong>Valero</strong> Houston and Texas City plants join the<br />

Bill Greehey refinery in the Texas Clean Industries 2000<br />

program that called for industrial plants to reduce their<br />

emissions by 50 percent between 1995 and 2000.<br />

In the summer of 2003, <strong>Valero</strong> acquired not only its<br />

St. Charles Refinery but also a host of environmental<br />

ailments at the plant. The refinery had not been wellmaintained<br />

and was plagued by problems. Addressing<br />

safety and the environment first, <strong>Valero</strong> dramatically<br />

improved the plant’s ecological profile – so dramatic, in<br />

fact, that the refinery earned <strong>Valero</strong>’s first “Chairman’s<br />

Award for Environmental <strong>Excellence</strong>” in February 2005.<br />

The inaugural award was and continues to be given to the<br />

refinery with the best overall environmental performance.<br />

<strong>Valero</strong> continued to contribute to clean energy with the<br />

completed construction of a 50-megawatt wind farm near<br />

its McKee Refinery in the Texas Panhandle. In total, 33 GE<br />

wind turbines operate just outside the refinery and supply<br />

energy to the plant. Construction of the first six turbines<br />

began in mid-October 2008, and took approximately<br />

two months to complete. Sales to a local utility began<br />

shortly thereafter. Since the wind farm replaced electricity<br />

generated from fossil fuels, it instantly helped reduce<br />

<strong>Valero</strong>’s carbon footprint – a primary objective of the<br />

project. “Initiatives like our wind farm help to make us<br />

an industry leader in environmental stewardship,” said<br />

Kirk Saffell, Vice President of Environment and Safety.<br />

The open land around the McKee Refinery made it ideal<br />

for construction of the 250-foot wind turbines, with<br />

prevailing winds capable of providing a steady supply of<br />

electricity.<br />

Today, the company has a full department dedicated to<br />

Alternative Fuels. And the acquisition of nine ethanol<br />

plants, with one acquisition pending in 2010, has opened<br />

new ventures for the company in clean-fuel technology.<br />

41 <strong>Valero</strong> Lines 3oth anniversary edition

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