Imperial to produce renewable diesel at Strathcona refinery using locally grown crops
![Strathcona refinery Strathcona refinery near Edmonton](/content/dam/ctvnews/en/images/2021/8/25/strathcona-refinery-1-5560890-1629911651719.png)
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
![](https://www.ctvnews.ca/polopoly_fs/1.6978852.1722008165!/httpImage/image.jpg_gen/derivatives/landscape_800/image.jpg)
30% of town structures destroyed in Jasper wildfire: officials
Alberta Premier Danielle Smith is set to tour the resort town of Jasper to see firsthand the devastation caused by wildfires.
'He was just gone': Police ramp up search for vulnerable 3-year-old boy in Mississauga, Ont.
Police in Mississauga are conducting a full-scale search of the city’s biggest park for a non-verbal toddler who went missing Thursday evening. Sgt. Jennifer Trimble told reporters Friday morning that there has been no trace of three-year-old Zaid Abdullah since 6:20 p.m., when he was last seen with his parents in Erindale Park, near Dundas Street West and Mississauga Road.
Driver charged after flashing high beams at approaching police
Orillia OPP arrested and charged a driver with impaired driving after flashing their high beams.
At least 4 buildings burned at Jasper Park Lodge, others damaged: Fairmont memo
The Fairmont Jasper Park Lodge said Thursday afternoon most of its structures are 'standing and intact,' including its iconic main lodge.
Canada's Christine Sinclair: 'We were never shown drone footage'
Canada soccer great Christine Sinclair said on Friday national team players were never shown drone footage during the more than two decades she was on the team, following a spying scandal that cast a shadow over the Canadians at the Paris Games.
Winnipeg senior's account overdrawn $146,000 for water bill
A Winnipeg senior is getting soaked with a six figure water bill.
Irish museum pulls Sinead O'Connor waxwork after just one day due to backlash
An Irish museum will withdraw a waxwork of singer-songwriter Sinéad O’Connor just one day after installing it, following a backlash from her family and the public, it told CNN in a statement on Friday.
Thousands of fans take place along River Seine for rainy Olympic opening ceremony
Athletes are making their way down the Seine River through France's capital to mark the official opening of the Paris Olympics.
Major Canadian bank experiences direct deposit outage on payday
Scotiabank says it has fixed a technical issue that impacted direct deposits on Friday morning.