Geographically gifted: a greener footprint and high-paying jobs

Update on the Cherry Point industrial zone

Tara Gilligan Reimer

In Washington state, Whatcom is the county known as “the fourth corner of the U.S.” (with the outermost counties in Maine, Florida and California making up the other three corners). And within the fourth corner is a geographically gifted swath of land that meets Pacific waters.

The Cherry Point industrial zone is the largest heavy industrial area in the state. Comprising 6,000 acres (equivalent to just under 10 square miles) and positioned on the Canadian border, this Whatcom County land — adjacent to the Lummi Nation and the city of Ferndale — has two refineries, plus a company that distributes propane to Asia.

Some of Whatcom’s highest-paying jobs

Don Goldberg, director of economic development at the Port of Bellingham and Whatcom County, is well versed in the power and constituencies of this area.

“The Cherry Point zone makes up some of the highest-paying jobs in the region, which include BP and Phillips 66,” he said, “and these companies pay a substantial part of the county’s tax base.”

Goldberg has served as director for the past five-and-ahalf years. Prior, he was director of business development for the Port of Portland. Based on his West Coast history, he understands the geographic differences between Cherry Point and a major hub like Portland.

Current map: distinct and contained campuses

“Far from a major city, each international company on Cherry Point has built its own campus,” Goldberg pointed out.

In addition to continually updating each technically complex entity, attention has also been paid to employee needs — from safety to commissary — to create a self-contained, productive work environment.

In the Cherry Point zone, BP and Phillips make up two of those large international campuses with active shipping. The third campus is Petrogas West LLC (owned by Canadian company AltaGas), which distributes propane to Japan.

Future map: opportunities for development

While highly technical, secure and detailed campuses are significant, these are also major investments for largely global companies. Being away from any city and being without greater infrastructure — freshwater access, sewer constructs, traffic planning — are some of the reasons that Cherry Point has not been developed further.

Of course, there is huge potential.

Goldberg ticked off the benefits: undeveloped land, opportunity for regenerative energy business, proximity to the border, leading to positive economic impacts for Washington state, and huge potential for international markets.

Meantime, important growth, all within a greener footprint, is already occurring at Cherry Point.

Growth: ongoing, within a greener footprint

• AltaGas: Alcoa Intalco closed its aluminum smelter in Ferndale approximately two-and-a-half years ago. A private equity firm in partnership with Washington state, as Goldberg recapped, “desperately tried to save” the plant, which provided about 700 high-paying jobs. But several factors combined — the lowered price of aluminum, an aged factory that needed costly updates, a cancelled power contract — ultimately meant opening again would not be feasible.

AltaGas acquired the excess property (not the actual smelter facility) and is expanding the company’s footprint in green energy. Goldberg noted that AltaGas is working with Indigenous groups, and that importantly, the Lummi Nation “will have a lot to say.” Throughout the interview, the director was purposeful to include these steps in any development process: quality of life and input of local communities.

• On-land Atlantic salmon farm: Goldberg also noted that a large property of 350 acres, privately owned and now in escrow, would become an advanced, and importantly, on-land, Atlantic salmon farm. The propagation of this important food source, successful only for Atlantic and not any other kind of salmon, is possible. Goldberg emphasized that operations would not take place in water but on land.

• Coal terminal acreage on market: Whatcom County no longer allows new refineries, shipping terminals or coal-fired power plants. (In 2021, the Whatcom County Council voted unanimously to ban all.) Currently, the SSA Marine Gateway Pacific Terminal, at 1,500 acres, is on the market.

• bp renewable energy expansion: bp has announced its intention to invest in a $1.5-billion expansion for building renewable energy facilities in its future. This major investment will bring thousands of construction jobs and hundreds of permanent positions, Goldberg said. (Read more on the following page.)

Effects are personal and lifechanging

Back in 2019, the Center for Business and Economic Research at Western Washington University published a study about the effects of job earnings in this industrial area. Then, the average job at Cherry Point paid 243% (almost 2.5 times) the average job in Whatcom County. Though the study was conducted four years ago, the ratio is still striking.

Goldberg spoke about this study, emphasizing the need for high-paying jobs to keep pace with home price increases. Now, the average Whatcom County home value is $559,708 (February 2023), according to Zillow, a real estate company that offers value estimates of homes. And net family income is one of the biggest determinants of home ownership.

Summing up the growth in Whatcom County’s most important industrial zone, Goldberg said: “We’re moving past internal arguments, and we’re moving past being highly focused on fossil fuel. We’re looking ahead to renewable energy, manufacturing, international markets and opportunities.”

With lots of beckoning green lights, there is also a greener footprint ahead.

“Lowering greenhouse gas (GHG) emissions from our own production, as well as in the fuels we sell, will help Cherry Point deliver on bp’s goals of becoming net zero by 2050 or sooner,” said Eric Zimpfer, VP refining at bp Cherry Point.

The two projects at Cherry Point are part of bp’s multibillion-dollar commitment to construct similar facilities at five sites around the world, including Australia, Spain, Germany and the Netherlands. The projects are expected to produce significant amounts of low-carbon energy while creating thousands of construction jobs, as well as permanent jobs upon completion. While exact numbers of jobs are not yet available, significant contractor support will be needed to construct the projects. As reference, Cherry Point’s on-site contrac-