Exxon commits $560 million to Canada’s renewable diesel future
A new Alberta facility will ship much its fuel to B.C., playing a role in the province’s emission-reducing efforts.
Exxon Mobil announced on Thursday that it will invest roughly $560 million in a new Canadian renewable-diesel facility through its majority-owned affiliate, Imperial Oil Ltd. The move is the latest in Exxon’s efforts to boost biofuel production and curb greenhouse gas emissions.
The facility, which will be located next to the Strathcona refinery near Edmonton, Alta., is now expected to start production in 2025, later than the original target of 2024. The facility is projected to produce 20,000 barrels of fuel daily, utilizing primarily local feedstocks and incorporating hydrogen and carbon capture and storage.
We are making strategic investments to reduce greenhouse gas emissions from our own operations and to help customers in vital sectors of the economy reduce their emissions.–Brad Corson, CEO of Imperial
According to Exxon, renewable diesel has the same chemical make-up as conventional diesel but is considered a more environmentally friendly fuel source. Produced from feedstocks such as vegetable oil, it can be seamlessly used in regular engines compared to biodiesel.
“The Strathcona project is another example of how we are investing in advantaged facilities and applying our leading technology and decades of experience to develop lower-emission solutions for customers. We continue to focus investments on markets like Canada, where well-designed policies support technologies that reduce life-cycle emissions,” said Karen McKee, president of ExxonMobil Product Solutions.