Phillips 66 and Renewable Energy Group Inc. (REG) have withdrawn a previously proposed joint project to build the largest renewable diesel refinery on the US West Coast.
The companies have cancelled construction of the planned 250 million-gal/year diesel plant in Ferndale, Wash., due to permitting delays and uncertainties, Phillips 66 said on Jan. 21.
In expressing thanks to Washington state, Whatcom County, local officials, and other stakeholders for their advice and support during the process, both Phillips 66 and REG confirmed they will work with all parties involved to wind down the ongoing permitting process.
Despite the project’s cancellation, Phillips 66 will continue 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, said Robert Herman, Phillip 66’s executive vice-president of refining.
REG also plans to continue developing numerous opportunities to grow its renewable diesel production to positively impact the environment and reduce the carbon intensity of transportation fuels through application of the operator’s proprietary technologies, said Cynthia Warner, REG’s chief executive officer.
The proposed Ferndale renewable diesel plant was to be built adjacent to Phillips 66’s 105,000-b/d Ferndale refinery to access the site’s existing infrastructure, including tank storage, a dock, as well as rail and truck rack access, Phillips 66 said in a Nov. 1, 2018, release.
The plant was to be equipped with REG’s proprietary BioSynfining technology for production of renewable diesel fuel, with planned feedstocks to include a mix of waste fats, oils, and greases, including regionally sourced vegetable oils, animal fats, and used cooking oil.
REG, which uses an integrated procurement, distribution, and logistics network to operate 14 biorefineries in the US and Europe, produced 502 million gal of cleaner fuel in 2018 to deliver more than 4 million tonnes of carbon reduction, the operator said.