Phillips 66 and REG Withdraw Renewable Diesel Project in Washington State


Phillips 66, a diversified energy manufacturing and logistics company, and Renewable Energy Group Inc said on Tuesday they plan to stop the joint construction of a renewable diesel plant in Washington and have canceled the project following permitting delays and other 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 of the United States.

“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 “CJ” Warner, Renewable Energy Group CEO. “We remain dedicated to positively impacting the environment and reducing the carbon intensity of transportation fuels through the application of REG’s proven technologies.”

Both companies expressed appreciation to Washington state, Whatcom County, local officials and other stakeholders for their advice and support during the process and will work with them to wind down the ongoing permitting process.

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