Tesoro Corporation launches plan to support development of renewable biocrude for its refineries_Established relationships with Fulcrum, Virent, and Ensyn_by chemwinfo

20 January 2016

ABOUT TESORO CORPORATION

DETAILS

Tesoro Corporation (NYSE: TSO)

today announced its plan

to foster the development of

biocrude made from renewable biomass,

which can be co-processed in its existing refineries,

along with traditional crude oil.

Converting renewable biomass into biocrude

is expected to enable existing refining assets

to produce less carbon-intensive fuels

at a significantly lower capital and operating cost than

competing technologies.

This approach could lower Tesoro's compliance costs

with the federal renewable fuel standard and

California's low carbon fuel standard by generating credits,

while producing less carbon-intensive fuels

which are fully compatible with

the nation's existing fuel infrastructure as well as

current vehicle fleet warranties.

In order to support the development of biocrude, Tesoro

is working collaboratively with several renewable energy companies

to advance biomass-to-fuels technology, including:
             

• Fulcrum BioEnergy, Inc.: Fulcrum plans to supply biocrude
  produced from municipal solid waste to
  Tesoro Refining & Marketing Company LLC ("TRMC")
  to process as a feedstock at its Martinez, California Refinery.
  
  An estimated 800 barrels of biocrude per day
  will be produced at Fulcrum's Sierra BioFuels Plant
  in Reno, Nevada, which is expected to be operational
  in early 2018. 
   
• Virent, Inc.: Tesoro and Virent are working
  to establish a strategic relationship
  to support scale-up and commercialization of
  Virent's BioForming technology
  which produces low-carbon, biofuel and chemicals.
  
  
  
  
   
• Ensyn Corporation: Ensyn has applied for a pathway
  with the California Air Resources Board
  to co-process its biocrude, produced from tree residue
  - called Renewable Fuel Oil(TM) -
  in TRMC's California refineries.
  
  
  

CJ Warner,

Executive Vice President of 

Strategy and Business Development at Tesoro

"We've established relationships such as those with
 Fulcrum, Virent, and Ensyn,
 to progress technologies which would enable
 our existing fuel manufacturing infrastructure
 to help meet the demand for low-carbon, advanced biofuels.

 Working with these companies, Tesoro seeks
 to create shared value that will benefit
 our communities, consumers and the environment,
 while allowing us
 to supply biofuels at a competitive price,"

READ MORE

Tesoro Contacts:

Investors:

Sam Ramraj,

Vice President,

Investor Relations,

(210) 626-4757

Media:

Tesoro Media Relations,

media@tsocorp.com,

(210) 626-7702

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