Phillips 66 and Renewable Energy Group Inc. are discontinuing their joint effort to construct a large-scale renewable diesel plant in Ferndale, Washington, the companies announced Jan. 21.

The project has been canceled due to permitting delays and uncertainties.

Originally announced in fall 2018, the 250 MMgy project 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,” 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.”

CJ Warner, CEO of REG, 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.”

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.