Renewable Diesel Plant Halted

P66, REG Discontinue Renewable Diesel Project in Washington

OAKHURST, N.J. (DTN) -- Phillips 66 and Renewable Energy Group Inc. announced they are discontinuing their joint effort to construct a large-scale renewable diesel plant in Ferndale, Washington.

The project has been canceled due to permitting delays and uncertainties. Originally announced in fall 2018, this 250-million-gallon-per-year project would have resulted in the largest renewable diesel refinery on the West Coast.

"While we believe this Ferndale Refinery is a strategic fit for this renewable diesel project, permitting uncertainties were leading to delays and higher costs," said Robert Herman, Phillips 66 executive vice president of refining. "Phillips 66 continues to progress its portfolio of renewable diesel projects and evaluate new opportunities to provide consumers with renewable fuels that comply with low-carbon fuel standards."

Cynthia Warner, Renewable Energy Group CEO, said, "Although we are disappointed in this result, REG is undeterred and continues to develop numerous opportunities to grow our renewable diesel production. We remain dedicated to positively impacting the environment and reducing the carbon intensity of transportation fuels through the application of REG's proven technologies."

The companies will work with state, county, local officials and other stakeholders to wind down the ongoing permitting process.