Phillips 66 and Renewable Energy Group (REG) have decided to discontinue their joint effort to build a large-scale renewable diesel plant in Ferndale in the US state of Washington.
According to a statement from the partners, the project has been cancelled due to permitting delays and uncertainties. Originally announced in 2018, the 250 million gallon per year facility would have been the largest renewable diesel refinery on the US West Coast.
“While we believe the 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.”
“Although we are disappointed in this result, REG is undeterred and continues to develop numerous opportunities to grow our renewable diesel production,” said Cynthia Warner, CEO of REG. “We remain dedicated to positively impacting the environment and reducing the carbon intensity of transportation fuels through the application of REG’s proven technologies.”
REG and Phillips 66 thanked Washington State, Whatcom County, local officials and other stakeholders for the advice and support during the process. The companies will continue to work with all stakeholders to wind down the permitting process.
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