Phillips 66 and Renewable Energy Group cancel renewable diesel project

Jessica Paige 22 January 2020 (Last Updated January 22nd, 2020 15:39)

Energy manufacturing company Phillips 66 and international fuel producer Renewable Energy Group (REG) have cancelled construction of a large-scale renewable diesel plant in Ferndale, Washington. Had the 250 million gallon per-year plant been built, it would have been the largest renewable diesel refinery on the US West Coast.

Phillips 66 and Renewable Energy Group cancel renewable diesel project
Planning for the project, which was to use REG BioSynfining technology to produce renewable diesel fuel, has now been cancelled due to permitting delays and uncertainty.

Energy manufacturing company Phillips 66 and international fuel producer Renewable Energy Group (REG) have cancelled construction of a large-scale renewable diesel plant in Ferndale, Washington. Had the 250 million gallon per-year plant been built, it would have been the largest renewable diesel refinery on the US West Coast.

Planning for the project, which was to use REG BioSynfining technology to produce renewable diesel fuel, was announced on 1 November 2018, but it has now been cancelled due to permitting delays and uncertainty.

Phillips 66 executive vice president of refining Robert Herman said: “While we believe the Ferndale Refinery is a strategic fit for this renewable diesel project, permitting uncertainties were leading to delays and higher costs. 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.”

Renewable Energy Group CEO Cynthia Warner 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.”

Power Technology has approached Phillips 66 for comment.