Oregon Approves Key Permit for Controversial Biofuel Refinery on Columbia River

Oregon Approves Permit for Controversial Biofuel Refinery | Oil Gas Energy Magazine

Environmental Groups and Tribes Continue to Oppose Project

Oregon’s Department of Environmental Quality (DEQ) has granted a key permit for a proposed $2.5 billion biofuel refinery along the Columbia River, despite ongoing opposition from environmental groups and local tribes. The approval, issued on Tuesday, allows NEXT Energy, a Houston-based company also known as NXTClean Fuels, to proceed with its plans to manufacture renewable diesel and sustainable aviation fuel at the Port Westward industrial park in Columbia County. This deepwater port site, located on the outskirts of Clatskanie, has become the focal point of a contentious debate over environmental concerns.

The biofuel refinery aims to produce up to 50,000 barrels of renewable fuels per day, or over 750 million gallons annually, primarily from materials such as used cooking oil, fish grease, animal fats, and seed oils. The fuels will be shipped via pipelines, trucks, and railcars to various global markets. The DEQ’s water quality certification approval marks the final state review required before the refinery can obtain a federal permit from the U.S. Army Corps of Engineers. However, this approval follows a lengthy process, including prior rejections in 2021 and 2022 due to inadequate information in the company’s initial applications.

Concerns Over Environmental Impact

While proponents argue that biofuels are a key step in reducing carbon emissions, particularly in the transportation sector, environmental groups remain skeptical of the refinery’s potential to negatively impact the surrounding ecosystem. Critics highlight the risks to the Columbia River and its salmon populations, citing potential water contamination and the possibility of spills from the refinery and its railyard. They also point to concerns about the refinery’s reliance on fossil fuels, such as fracked gas, for production, which would contribute to significant greenhouse gas emissions.

Columbia Riverkeeper, a Portland-based environmental group, has been one of the most vocal opponents of the project. Audrey Leonard, a staff attorney for the group, contends that the company’s plans to use corn and soybean oil as feedstocks would result in higher carbon emissions compared to the biofuels made from waste oils. Additionally, she argues that the refinery’s location on unstable soil behind dikes presents a risk to high-value farmland and salmon habitats in the event of an accident or earthquake.

Local tribes, including the Columbia River Inter-Tribal Fish Commission, have also voiced their opposition, arguing that the project could worsen aquatic habitat conditions and harm juvenile salmon, a vital species for the region’s tribes. “This project is a massive step backward from the years of effort to improve aquatic habitat,” said Aja K. DeCoteau, executive director of the commission.

Supporters See It as a Climate Solution

Despite the opposition, some groups see the refinery as a necessary step toward addressing climate change. Tim Miller, director of Oregon Business for Climate, a nonprofit focused on climate policy, supports the project, emphasizing the need for short-term solutions to reduce greenhouse gas emissions and air pollution. He believes that expanding the use of renewable diesel and sustainable aviation fuel is critical in the transition to a zero-emission future.

As the project moves forward, NEXT Energy will need to secure additional permits, including two state stormwater permits, which are typically routine. The Army Corps of Engineers is expected to release a draft environmental impact statement for public review later this year. Meanwhile, NEXT is also working on a second biofuel refinery in Lakeview, Oregon, which will focus on producing renewable natural gas from wood waste.

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