Phillips 66 and REG Scrap Renewable Diesel Project

January 22, 2020

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by Andreas Exarheas (Rigzone) Phillips 66 and Renewable Energy Group Inc. (REG) have announced that they are discontinuing their joint effort to construct a large-scale renewable diesel plant in Ferndale, Washington.

The project was said to have been canceled due to permitting delays and uncertainties. According to a comment posted on Phillips 66’s website, the 250 million gallon per year development would have resulted in the largest renewable diesel refinery on the 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,” Robert Herman, Phillips 66 executive vice president of refining, said in a company statement. READ MORE

REG, Phillips 66 cancel plans for renewable diesel plant (Biomass Magazine)

Heard on the Floor: Alleluias and Vision 2020 at the National Biodiesel Conference (Biofuels Digest)

PHILLIPS 66 AND RENEWABLE ENERGY GROUP WITHDRAW RENEWABLE DIESEL PROJECT IN WASHINGTON STATE (Renewable Energy Group)

Phillips 66, REG cancel Washington renewable diesel project (Biodiesel Magazine)

Renewable Energy Group, Phillips 66 pull plug on renewable diesel plant in Washington (Biofuels International)

Excerpt from Biofuels Digest: Originally announced in fall 2018, this 250 million gallon per year project aimed at the Phillips 66 refinery in Ferndale Washington would have resulted in the largest renewable diesel refinery on the West Coast. Though styled as a joint decision — in the nature of a JV — this one was, we hear, a Phillips 66 call.

The culprit? Permitting delays. Not the kind that cost you months. A debilitating avalanche of almost inexplicable roadblocks have been thrown up against a project that, essentially, does no more than install a new unit on an existing refinery footprint, and begins to transform an all-fossil refinery into the world of renewables.

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What REG is loathe to add while farewelling valiant partners and a site they had thought highly of, is that the company frankly has quite a few options, elsewhere. It really is not a question of whether, we believe, in expanding the footprint of their proven renewable diesel technology, it is a question of where, when and with whom.

It’s worth remembering, for one, that REG bought extra land at Geismar some time back, and there are plenty of jurisdictions who might welcome a project that creates renewable fuels and jobs. The world is shifting fast towards biodiesel and renewable diesel, and REG’s balance sheet looks terrific right now. READ MORE