Phillips 66 said Tuesday it canceled plans to build the largest renewable diesel refinery along the West Coast, citing concerns with project costs and permitting problems.
The Houston-based refining company is withdrawing from its joint effort with the Iowa-based Renewable Energy Group on the diesel refinery that would have churned out 250 million gallons of fuel per year from the Ferndale, Wash. complex. The refining technology produces diesel from agricultural oils and animal fats using a hydrogenation process.
Phillips 66 had not disclosed the cost of the project, which was announced in 2018.
“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.”
Phillips 66 is building two smaller-scale renewable diesel plants in Nevada in a partnership with California-based Ryze Renewables.
The Renewable Energy Group chief executive said she was disappointed in the project’s cancelation.
“We remain dedicated to positively impacting the environment and reducing the carbon intensity of transportation fuels through the application of REG’s proven technologies,” said CEO CJ Warner.
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