Refinery project moves forward with state permit

State environmental regulators approved a key permit for a controversial refinery project near Clatskanie this month.

The Oregon Department of Environmental Quality had previously denied water quality permit applications submitted by Houston-based NXT Clean Fuels, also referred to as NEXT, in 2021 and 2022 “due to insufficient information to evaluate the permit application.”

The state’s approval now moves the project forward in a significant way, marking the final comprehensive state review of the project. The permit is a requirement for a permit the company needs: a federal water quality permit from the U.S. Army Corps of Engineers.

A draft environmental impact statement from the Army Corps is expected later this year for public review.

NEXT plans to manufacture up to 50,000 barrels of renewable fuel and sustainable aviation fuel per day at Port Westward, a deepwater port outside of Clatskanie.

Biofuels, produced from organic and plant waste, are considered renewable and have emerged as a way to reduce carbon emissions from vehicles. But environmental groups — including those that oppose the project at Port Westward – are concerned about the impacts of producing these fuels.

Michael Hinrichs, a spokesperson for NEXT, said DEQ’s approval was a milestone.

“Not only is that a big win in and of itself to receive that permit,” he said, “but the kind of even more monumental thing that happened is that was the last permit from the state of Oregon that we needed — the major permits — in order to continue moving forward.”

Hinrichs said they hope to have full federal approval by the end of the year.

The project has received support from local leaders, including state Senator Suzanne Weber and former state Senator Betsy Johnson, who commented to DEQ that NEXT will “drive forward the cleaner, greener economy our state is moving toward.”

The proposed facility has also faced consistent opposition from environmental groups, some local farmers, tribes and others who fear the refinery could impact the river, salmon and agricultural lands.

The environmental group Columbia Riverkeeper says it plans to appeal DEQ’s decision. The group said the state ignored the seismic vulnerability of the site, noting that NEXT’s proposed facility would be built behind dikes on unstable soil, exacerbating the risk of spills and pollution in the case of an earthquake.

The Columbia River Inter-Tribal Fish Commission, which manages fisheries for regional tribes, urged DEQ to reject the water quality certification late last year due to “the project’s long term impacts on tribal resources and the region’s ecosystem.”

Brandon Schilling, a farmer in Clatskanie, helps spearhead the local group Save Port Westward. He said DEQ’s approval of the water quality permit wasn’t necessarily a surprise, but it was disheartening.

He and others are now waiting on the Army Corps’ broader look at the project. In particular, Schilling remains concerned about a containment plan for the site in case of spills.

“There’s almost an unending list of things that you could bring up with the Army Corps,” he said.

The Oregonian reports that NEXT is developing a second biofuel refinery in Lakeview, about 100 miles east of Klamath Falls.