U.S. refiner Phillips 66 and Renewable Energy Group Inc. canceled plans to build a large-scale renewable diesel plant in Ferndale, Wash., citing "permitting delays and uncertainties."

The 250 million-gallon-per-year project was originally announced in fall 2018 and designed to be the largest renewable diesel refinery on the West Coast, according to a Jan. 21 release.

"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."

Renewable Energy Group is the largest producer of biodiesel in North America.