Renewable Energy Group Inc. and Phillips 66 announced on Jan. 21 the cancellation of their joint effort to construct a 250 MMgy renewable diesel plant in Ferndale, Washington. The companies cited permitting delays and uncertainties as reasons for the action.

The companies originally announced plans to construct the facility on Nov. 1, 2018. At that time REG said the plant would utilize its proprietary BioSynfining technology to produce fuel. The proposed plant was expected to take in a mix of waste fats, oils and greases, including regionally sourced vegetable oils, animal fats and used cooking oil as feedstock. The facility was planned for develop adjacent to the existing Phillips 66 Ferndale Refinery, where it would benefit from existing infrastructure. A final investment decision on the project was initially expected to be reached in 2019.

“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.”

REG currently owns and operates a network of 13 biorefineries with a combined capacity of 505 MMgy, according to the company’s latest quarterly report filed with the U.S. Securities and Exchange Commission. This includes a 75 MMgy renewable diesel production facility located on Geismar, Louisiana.