US energy company Phillips 66 has been ordered by a California state court jury to pay $604.9m in damages to Propel Fuels, a retailer of low-carbon fuels at stations throughout California.    

The energy company is accused of using Propel's trade secrets to enhance its renewable-fuel capabilities.  

The jury in Oakland found that Phillips 66 had wilfully and maliciously used Propel's confidential information under the guise of gathering information for a potential acquisition and then used it to create a competing business. 

The court's decision came after a lengthy legal battle, with more than two years of pretrial proceedings and a trial that involved extensive evidence and testimony from 31 witnesses, including ten expert witnesses.  

A Propel spokesperson confirmed the award, while a Phillips 66 spokesperson expressed disappointment but confidence in their case, indicating the company's intention to explore all legal options. 

Propel said in the suit: "Phillips 66 is making a multibillion-dollar bet on the California renewable fuel market, premised on Propel's trade secrets." 

Propel Fuels, which specialises in low-emission gasoline and diesel, had engaged in discussions with Phillips 66 in 2017 regarding a potential acquisition aimed at boosting Phillips' renewable fuel business in California.  

Phillips 66 abruptly withdrew from the deal in 2018, and launched its own renewable fuel product in 2019, according to Propel. 

The lawsuit was initiated by Propel in Alameda County court in February 2022, and it accused Phillips 66 of unlawfully using trade secrets that included financial data and business strategies. These were shared during the acquisition talks and represented 13 years of Propel's development efforts, costing the company hundreds of millions of dollars. 

Propel Fuels founder and CEO Rob Elam said: “Propel Fuels is pleased that after viewing all of the evidence, the jury held Phillips 66 accountable for stealing our trade secrets.”