Imperial to produce renewable diesel at Strathcona refinery using locally grown crops
Imperial Oil Ltd. is planning to build a renewable diesel complex at its Strathcona refinery near Edmonton, using locally grown vegetable oils to meet growing customer demand for cleaner burning fuel products.
Calgary-based Imperial - a subsidiary of ExxonMobil and Canada's largest petroleum refiner - said Wednesday its proposed project would be the largest facility of its kind in Canada, capable of producing more than 1 billion litres per year of biofuel annually.
That works out to the equivalent of about 3 million tonnes per year of emissions reductions from the Canadian transportation sector when compared with traditional petroleum-based diesel, said Jon Wetmore, Imperial's vice-president of downstream.
“For the most part I think all of our customer base is really interested and keen on this,” Wetmore said. “The rail companies, CN Rail and CP Rail, have probably been the most vocal looking for a renewable fuel option for their locomotives.”
Renewable diesel fuel - sometimes called green diesel - is a biofuel that can be produced from a range of sustainable feedstocks including wood, crops and vegetable oils, and even sawdust.
Because it is chemically the same as petroleum diesel, renewable diesel can be used in regular diesel engines. That makes it appealing for companies racing to get in line with Canada's new Clean Fuel Standard, which takes effect next year. The legislation will require liquid fuel suppliers to decrease the carbon intensity of their products by 13 per cent by 2030.
“We're not alone in this. Everybody's looking at renewable diesel as being an advantaged fuel under the Canadian clean fuels regulation coming forward, and we certainly see it the same way,” Wetmore said.
Imperial's proposed project will use “blue” hydrogen (a term used to describe hydrogen produced from natural gas with carbon capture and storage) to process locally grown crops such as canola and soybeans into the renewable diesel.
The company didn't disclose a price tag for the proposed project, saying it intends to make a final investment decision next year. Production could start in 2024.
Wetmore said moving ahead with the complex will depend on market conditions as well as securing necessary government approvals and support. He said Imperial is in partnership discussions with the governments of Alberta as well as with B.C., which has its own provincial renewable and low carbon fuel requirements.
While most of North America's major renewable diesel complexes are located in the United States, plans are also in the works to build one at Regina. That project, proposed by Federated Co-operatives Ltd., would be built at the company's existing Co-op refinery site and has a 2025 production target. It would be similar in size to the one proposed by Imperial.
This report by The Canadian Press was first published August 25, 2021.
CTVNews.ca Top Stories
Doctors say capital gains tax changes will jeopardize their retirement. Is that true?
The Canadian Medical Association asserts the Liberals' proposed changes to capital gains taxation will put doctors' retirement savings in jeopardy, but some financial experts insist incorporated professionals are not as doomed as they say they are.
Something in the water? Canadian family latest to spot elusive 'Loch Ness Monster'
For centuries, people have wondered what, if anything, might be lurking beneath the surface of Loch Ness in Scotland. When Canadian couple Parry Malm and Shannon Wiseman visited the Scottish highlands earlier this month with their two children, they didn’t expect to become part of the mystery.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
It's no secret that spring can be a tumultuous time for Canadian weather, and as an unseasonably mild El Nino winter gives way to summer, there's bound to be a few swings in temperature that seem out of the ordinary. From Ontario to the Atlantic, though, this week is about to feel a little erratic.
What do weight loss drugs mean for a diet industry built on eating less and exercising more?
Recent injected drugs like Wegovy and its predecessor, the diabetes medication Ozempic, are reshaping the health and fitness industries.
He replaced Mickey Mantle. Now baseball's oldest living major leaguer is turning 100
The oldest living former major leaguer, Art Schallock turns 100 on Thursday and is being celebrated in the Bay Area and beyond as the milestone approaches.
What a urologist wants you to know about male infertility
When opposite sex couples are trying and failing to get pregnant, the attention often focuses on the woman. That’s not always the case.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
Bank of Canada officials split on when to start cutting interest rates
Members of the Bank of Canada's governing council were split on how long the central bank should wait before it starts cutting interest rates when they met earlier this month.
Made-in-Newfoundland vodka claims top prize at worldwide competition
A Newfoundland-made vodka has been named one of the world’s best by judges at this year’s World Vodka Awards.