One by one, energy executives, business leaders, elected officials and local employees
came to the podium last Friday, speaking to a crowd of more than 100 about the impact
of the Bayway Industrial Complex in Linden.
It’s the facility many know as the one you see when you are landing in Newark —
seemingly a blast from the state’s more industrial past.
It’s anything but that.
The five co-located firms at the Bayway Complex (Phillips 66, Infineum, Nexpera,
Linden Cogeneration, and Sunoco) span refining, chemical manufacturing, power
generation, environmental services and fuel logistics.
Their economic impact is staggering.
An analysis by the N.J. Business & Industry Association and the New Jersey Institute of Technology finds the Bayway Industrial Complex in Linden to be a substantial
contributor to New Jersey’s overall economy, generating $21.3 billion in total statewide
output, while adding nearly $7 billion to the Gross State Product.
The analysis, prepared by NJIT’s Office of Institutional Effectiveness utilizing the
IMPLAN input-output economic model for the year 2023, also shows the Bayway
Complex supported more than 12,000 jobs in the state in 2023.
We get it. Business is all about chasing the next big thing. That’s fair. That’s smart. But
it shouldn’t come at the expense of what has been working well for more than a century.
NJBIA CEO Michele Siekerka certainly sees it that way.
“While non-renewable energy sources and chemical manufacturing sometimes come
under ideological attack in the state, what the Bayway Industrial Complex provides is
absolutely essential to the state’s economic output, and an unmitigated driver of the
regional and local economies,” she said.
“As policy choices will directly influence the future trajectory of the Complex, it is
imperative that our policymakers appreciate both the investment these companies
make, their value and partnership within their immediate community, and the output they wholly provide to the state in terms of revenue and jobs and beyond the state in
terms of energy and supply chain.”
Congressman Tom Kean, Jr. (R, 7th District), who represents the area, couldn’t agree
more.
“The Bayway Industrial Complex is a massive economic driver for our state and our
region,” he said. “As we work to strengthen energy security, drive innovation, and
expand economic opportunity, Bayway remains central to that mission. I look forward to
continuing to build on this progress to demonstrate that New Jersey can and will lead in
creating a stronger, more secure energy future that lowers costs for families.”
The numbers in detail tell the story. The 2023 analysis found Bayway was responsible
for:
- 12,091 jobs supported statewide
- $1.2 billion in labor income
- $1.15 billion in tax revenues
- $124 million in capital investment
The study calculates the direct effects (activity at the facility itself: employment, payroll,
materials, and capital investment); indirect effects (supply-chain response as
contractors, vendors, and service providers expand their operations); induced effects
(household spending by workers whose income is supported by the facility) and the total
impact (the sum of direct, indirect, and induced effects).
Other notable and multi-level impacts that are shown include:
Employment and labor Income: In 2023, the Complex supported more than 12,000
jobs statewide, including 1,600 direct on-site positions and thousands more through
supply chains and household spending. These jobs generated approximately $1.2
billion in labor income, underscoring the breadth of the impact on the state’s workforce.
Economic output and GSP contribution: Total economic output linked to the
Complex reached $21.3 billion in 2023, with nearly $7.0 billion added to Gross State
Product (GSP)—close to 1% of the state’s economy. This level of concentration
highlights both the scale of Bayway’s contribution and the extent to which New Jersey’s
economy is tied to a single site.
Supply chain and household linkages: Of the $21.3 billion in output, $4.8 billion
came from supplier purchases and $3.2 billion from household spending. These figures
illustrate how Bayway’s activity supports a wide range of industries, extending far
beyond its core refining, chemical, and power operations.
Capital investment and technology: In 2023, companies at the site invested about
$124 million in capital projects, including facility upgrades and environmental
technologies such as emissions recovery and hydrogen co-firing. These investments
contribute to construction and supplier activity in the short term while shaping longer-
term technology adoption and regulatory compliance.
Public revenues and fiscal stability: The Bayway Complex was associated with
approximately $1.15 billion in federal, state, and local tax revenues in 2023, including
$507 million at the state and local level. This recurring revenue stream makes the site
relevant to fiscal planning, as changes in its operations would directly affect public
budgets.
Infrastructure and energy supply: The Bayway Complex provides more than half of
New Jersey’s refining capacity and plays a role in fuel supply for the broader Northeast
corridor. Its dependence on pipelines, energy systems, and transportation infrastructure
underscores the importance of maintaining resilient infrastructure to support both state
and regional energy needs.
“The economic and strategic significance of different industries within the Complex
should not be understated,” Siekerka said. “It is also important to recognize the extent of
how the operations within the Complex connect international energy supply to local
markets, all while providing jobs and wages to thousands of New Jerseyans.
“NJBIA encourages our policymakers to not seek out costly and disruptive burdens for
job creators within the Complex. In addition to the employment, labor income and
revenues provided by its continued operations, the businesses within it have made
investments in new technologies to ensure positive future economic and environmental
outcomes.”
Bayway Refinery Vice President Don Susanen said the facility’s record speak for itself.
“Phillips 66 has been part of the fabric of the City of Linden and Union County, New
Jersey, for more than 100 years,” he said. “We are incredibly proud of the contributions
our people and our products that have supported growth in our community and the
state.”
