A report authored by the New Jersey Business and Industry Association and the New Jersey Institute of Technology detailed the economic impact the Bayway Industrial Complex in Linden is having on the state’s industrial economy.
This structure allows industrial operations to be translated into measures of jobs, income, output and tax revenues.
In 2023, the complex, established in 1909, generated an estimated $21.3 billion in statewide economic output and supported more than 12,000 jobs across New Jersey. The complex generated $1.2 billion in labor income and $1.15 billion in federal, state and local tax revenue. The scale of activity places the facility among the most important industrial hubs in New Jersey.
These impacts reflect the combined operations of five companies located at the complex—Phillips 66, Infineum, Nexpera, Linden Cogeneration, and Sunoco—that span refining, chemical manufacturing, power generation, environmental services and fuel logistics.
Economic impact studies measure how the activity of a facility affects the broader economy. These results indicate that the Bayway Complex is closely tied to New Jersey’s workforce, supply chains, and fiscal outcomes. Its activity extends beyond refining and chemical manufacturing, influencing industries and households throughout the state.
The Phillips 66 Bayway Refinery is at the heart of the complex. It processes up to 258,000 barrels of crude oil per day — 62.5% of New Jersey’s total refining capacity among active refineries.
The Bayway site also includes related industries. Infineum, a joint venture between ExxonMobil and Shell, produces lubricant and fuel additives.
Nexpera regenerates sulfuric acid and recovers sulfur gases. Linden Cogeneration, a 980-megawatt combined-cycle facility, provides power to the New York Independent System Operator and PJM grids and steam and power to Phillips 66 and Infineum, with recent upgrades enabling hydrogen co-firing and utilizing o-gas from the refinery to reduce emissions.
Sunoco operates a major petroleum terminal with about 5 million barrels of storage and pipeline connections to major regional networks, as well as a local retail fuel station.
The economic contribution of the Bayway Industrial Complex was estimated using IMPLAN’s input–output framework across three categories of economic effects:
Direct effects: Resulting from the direct operations and capital investments of the five participating firms. The complex generates $13.3 billion in direct output from the companies’ spending and production and 1,638 direct jobs.
Indirect effects: Arising from business-to-business purchases within the supply chain (e.g., maintenance services, industrial inputs). The Bayway Complex generates $4.8 billion in indirect output through upstream supply chain linkages. 4,115 indirect jobs are supported through vendor, contractor and supplier activity.
Induced effects: Stemming from household spending by employees whose income is supported by the complex’s activity. $3.2 billion is in induced output from household consumption. 6,338 induced jobs are supported by household spending from those direct and indirect workers.
