Bayway Industrial Complex Drives $21.3 Billion in Economic Impact Across New Jersey

The Bayway Industrial Complex in Linden, New Jersey, stands as one of the most economically significant industrial hubs on the East Coast. According to an independent Economic Impact Analysis prepared by NJIT for the New Jersey Business & Industry Association (NJBIA), the Bayway Complex generated $21.3 billion in statewide economic output in 2023, supporting over 12,000 jobs and contributing nearly $7 billion to New Jersey’s Gross State Product (GSP).

The Bayway Industrial Complex is a co-located industrial ecosystem comprising five major firms: Phillips 66 Bayway Refinery, Infineum, Nexpera, Linden Cogeneration Plant, and Sunoco. Together, these companies span energy refining, specialty chemicals, power generation, environmental services, and fuel logistics, creating a tightly integrated supply chain that magnifies economic impact well beyond the facility’s physical footprint.

At its core is the Phillips 66 Bayway Refinery, which processes up to 258,000 barrels of crude oil per day, representing 62.5% of New Jersey’s total refining capacity—making it the largest refinery in the state and a critical node in the Northeast energy corridor.

The study used the IMPLAN input–output economic model, a widely accepted methodology that measures three layers of economic impact:

• Direct impacts from on-site operations and employment
• Indirect impacts from suppliers, contractors, and vendors
• Induced impacts from household spending by workers

This framework reveals how industrial activity ripples through the economy, supporting jobs, income, and tax revenues across multiple sectors and regions.

Key Economic Impact Highlights (2023)

• $21.3 billion in total statewide economic output
• 12,091 jobs supported across New Jersey
• $1.2 billion in labor income for New Jersey workers
• $7.35 billion in value added, nearly 1% of New Jersey’s entire GSP
• $124.7 million in capital investment in facility upgrades and technology
• $1.15 billion in federal, state, and local tax revenues

Notably, each direct job at Bayway supports six to seven additional jobs elsewhere in the state, underscoring the Complex’s deep integration into New Jersey’s supply chains and service economy.

Beyond headline numbers, the Bayway Industrial Complex plays a strategic role in workforce stability, energy security, and public finance. Its operations support fuel supply for the broader Northeast, generate recurring tax revenue for public services, and anchor Union County’s industrial base.

The report also highlights forward-looking investments, including hydrogen co-firing at the Linden Cogeneration Plant and emissions-reduction technologies, positioning the Complex for compliance with evolving environmental and energy standards.

The Bayway Industrial Complex is not just an industrial site—it is a cornerstone of New Jersey’s economy. With billions in output, thousands of jobs, and substantial tax contributions, its continued operation and modernization carry significant implications for economic resilience, workforce development, and fiscal stability statewide.