Overview
In June 2019, an explosion at a South Philadelphia oil refinery left Philadelphia Energy Solutions (PES) bankrupt. Although PES’s bankruptcy served as a rallying point for Philly Thrive, an activist organization seeking environmental justice for fenceline residents, Union workers were left devastated by unemployment and loss of severance. While Philly Thrive fights to keep the refinery closed, linking multiple cases of asthma, COPD, and various cancers in fenceline communities to years of PES pollution; Union workers are hopeful for a buy-out and reopening. Activists, workers, and the greater City of Philadelphia are left with one question: What is the future of the 1,300 acre site?
PES: Southwest Philadelphia's Largest Polluter and Employer
The oldest refinery on the East Coast, Philadelphia Energy Solutions (PES), has been open for more than 150 years and expands more than 1,300 acres. This refinery complex includes the Atlantic Refining Co., which opened in 1870, and Girard Point, which opened in 1926. At its peak, PES could process 335,000 barrels of unrefined oil per day, totaling 14 million gallons of oil. The refinery provided $2.1 billion in economic activity and supported 6,300 jobs, including those who were made possible by the refinery such as grocery stores, restaurants, and financial services.
Since operations began in 1866, the refinery has contaminated the land and water with hydrocarbons that have negatively impacted on human health. Since 2003, The Pennsylvania Department of Environmental Protection has been monitoring the site’s progress in terms of remedying the site, but the legality of the process has been questioned as it did not include public input. In 2009, a release of hydrogen fluoride resulted in the hospitalization of 13 workers. Between 2013 and 2015, the refinery produced high levels of carbon dioxide emissions, among other violations, which led to the refinery paying the city nearly $700,000 worth in settlement. 72 percent of Philadelphia’s toxic air emissions come from the refinery, according to a 2017 study conducted by the NAACP, National Medical Association, and the Clean Air Task Force. Some of the chemicals identified in the study were ammonia, hydrogen cyanide, benzene, and sulfuric acid. As the refinery shares its backyard with several residential neighborhoods, many local residents who have health issues such as cancer or chronic obstructive pulmonary disease (COPD) tie it back to the refinery.
The June 21st Explosion
The oil refinery exploded on June 21st, 2019. At 4:00 a.m., hydrofluoric acid leaked from the refinery’s alkylation unit which caused a vapor cloud to form just above the ground. The cloud ignited two minutes later and caused a large fire, leading to two consecutive explosions in the alkylation unit at 4:15am. Less than a minute after the fire began, a control room operator disposed of a majority of the hydrofluoric acid in the alkylation unit as part of an emergency response plan that was installed more than a decade ago. This plan would have reduced the damage that could be caused by an accidental leak of hydrofluoric acid. Even so, a small amount of the acid remained in some of the equipment. Seven minutes later, a safety storage drum containing butylene, isobutane, and butane ruptured and caused the third explosion. The explosion launched one drum fragment 2,100 feet across the Schuylkill River and two other fragments within the property of the refinery. It was so powerful that it showed up on satellite imagery and some nearby residents even found metal fragments on their property. There were no fatalities, but 5 workers sustained injuries that required first-aid. A shelter-in-place message was given from the city shortly after the explosion and the George C. Platt Memorial Bridge was temporarily closed in the early morning hours on Friday, but both were lifted shortly after 7 a.m.
When the city’s firefighters first arrived on scene, they were met by PES’s fire crew who were fighting the blaze by themselves. The fire department and the refinery's team worked together to contain the fire to the Girard Point alkylation unit and cooled pipes and tanks with water. Firefighters had the fire under control within a few hours, but they could not turn the main valve off as the fire had not yet cooled. The main valve would have turned off the butane and propane that were fueling the fire.
Later that day, the city took air samples around the refinery which were then taken to the city’s Air Management Service Laboratory. 61 harmful chemicals were tested, including carbon monoxide, hydrocarbons, and hydrogen sulfides. The Health Department announced that they found no toxic chemicals in the preliminary air tests.
Public Health Impacts
Investigators for the U.S. Chemical Safety and Hazard Investigation Board (CSB) confirmed that the explosion was caused by the failure of an elbow-shaped pipe that had eroded to half the thickness of a credit card. Hydrofluoric acid, one of the chemicals released in the explosion, can destroy tissue and bone, cause severe lung injury, and even fatalities if at least 2.5 percent of the skin is exposed to it. The reason as to why the pipe failed remains a mystery. The original pipes in the circuit of the failed pipe were installed in 1973 and no other pipe was anywhere near as corroded as the failed embow-piece.
According to federal findings that were released in mid-October, the explosion on June 21st resulted in the release of 5,239 pounds of toxic chemicals and truck-size shrapnel fragments were launched from the explosion site. Almost one ton was contained by water spray in the unit but about 3,271 was released into the atmosphere as hydrogen fluoride.
Economic Blows
Five days later, on June 26, the CEO of the refinery, Mark Smith, announced the closing of PES due to damage. This resulted in letting go most of the 1,100 employees while the remaining staff remains to clean up the site. The company filed for chapter 11 bankruptcy to the U.S. Bankruptcy Court in Delaware on July 21st which would provide the refinery with enough compensation to safely close the operation and reorganize the rebuilding of the infrastructure. On July 5, not long before the company filed for bankruptcy, Philadelphia Energy Solutions executives received $4.5 million bonuses. Below is a chart of how much money different executives received in bonuses:
Future of the Refinery
In January of 2020, the PES oil refinery was sold to Hilco Redevelopment Partners in a closed auction. Hilco offered to pay $252 million to remediate, recycle and redevelop the property. Although Hilco has suggested possibilities for the land, such as using part of it for refining oil and part of it for lighter industry such as distribution warehouses, it is currently unclear what specific plans the company has to redevelop the former refinery land.
When the sale was finalized, Hilco’s CEO, Roberto Perez, let Philly Thrive know that they could have a direct line with him. Hilco is working with the city to develop different ideas for the refinery land, which will later be presented to the community at a public meeting. However, Philly Thrive members feel that the only way to ensure a viable future for generations to come is for community members to have a seat at the table.
Potential buyers in the auction included Philip Rinaldi, a former chief executive of PES and current owner of Philadelphia Energy Industries. The second company looking to buy the refinery was S.G. Preston Co., a Philadelphia-based bioenergy organization. The latter company wanted to use a portion of the refinery to make renewable fuel from surrounding resources. The Office of Sustainability Clean Energy Vision proposed to reduce the city’s carbon emissions by 80 percent by 2050. As the refinery is responsible for a majority of the city’s emissions, the possible re-opening of the refinery puts this goal into question. The deciding factor is whether or not the city will support the re-opening of the refinery or a greener alternative that would align with their 2050 proposal.
Key Organizations
Two organizations in particular, Philly Thrive and the Refinery Advisory Group, have been active in imagining the future of what PES will be.
Philly Thrive is an activist organization that defends Philadelphia’s community and future from refinery pollution. They stand for “healthy and safety over profit, no fossil fuel expansion, and a green economy.” Philly Thrive is currently working on a campaign called #PayUpPES as part of their larger Right to Breathe campaign. With this, they hope to convince PES to fund the transition away from an economy that is reliant on fossil fuels toward a green economy. In order to do this, they have outlined a three phase process. The first phase requires them to spread the word about their cause in order to gain support. Their second phase pertains to representatives. They want to have the backing of two or three representatives who will support their fight. The third phase has yet to be determined as it is dependent on the first two phases.
Philadelphia Mayor Kenney established the Refinery Advisory Group in response to the refinery shut down shortly after the explosion. As the future of the site is unknown, this group was formed to plan for a number of possible outcomes. Members include those who are knowledgeable on the refinery and have diverse perspectives on the topic. The group will consider how the permanent closure of the refinery will impact the environment, economy, and public health, promote ideas for future site usage that are economically advantageous and environmentally safe, and gather information to better inform public officials.