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How to Tear Down an Oil Refinery in the Middle of Philadelphia

By Josh Saul - Bloomberg, September 30, 2021

After part of the Philadelphia Energy Solutions refinery exploded into flames one night in 2019, its owners filed for bankruptcy and put the 1,300-acre site up for sale. Hilco Global, a company with a track record of transforming fossil-fuel infrastructure like coal-fired power plants, bought the South Philadelphia facility out of bankruptcy with a grand new vision that includes logistics facilities and research labs.

But first the company has a daunting task: safely dismantling over 100 buildings, 3,000 tanks and 950 miles of dirty pipeline.

The Problem

Oil refining has taken place on the banks of the Schuylkill River since just after the Civil War. By the time the explosion scattered debris across the site and even over the river, the PES Oil Refinery was turning 330,000 barrels of crude day into gasoline, diesel and other petroleum products such as heating oil and jet fuel.

Right now, some parts of the PES Oil Refinery have the feel of a ghost town. Weeds sprout head-high among the pipelines, Canada geese strut down empty roads and small herds of deer bound past a silent railyard. But other parts are bustling with workers and big, yellow excavators as Hilco enters the second year of taking apart equipment and preparing the site for construction. The first tenants are supposed to move into the site in 2023.

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