Imperial Oil to complete $720M renewable diesel facility in 2025
Once completed near Edmonton, it will Canada’s largest renewable diesel facility.
Key Takeaways:
- Construction on Canada’s largest renewable diesel facility near Edmonton is expected to be completed by next spring.
- The $720-million project at Imperial’s Strathcona refinery will have a capacity of over one billion liters of renewable diesel annually.
- The facility will produce biomass-based fuel using locally sourced vegetable oils, including canola, and low-carbon hydrogen.
The Whole Story:
Imperial Oil Ltd. has provided an update on Canada’s largest renewable diesel facility, stating that construction of the complex near Edmonton is progressing well and is expected to be completed by next spring.
The $720-million project at Imperial’s Strathcona refinery will have a capacity of over one billion liters of renewable diesel annually. Imperial’s Strathcona refinery has been in operation for more than 75 years.
The facility, announced in 2021, will produce biomass-based fuel using locally sourced vegetable oils and low-carbon hydrogen, aiding Imperial in diversifying its petroleum-based portfolio as part of the energy transition, according to the company.
Imperial chairman and CEO Brad Corson informed analysts on a conference call Friday that the company remains confident in its decision to advance the project, despite a recent surplus of renewable fuel supply in the U.S. affecting margins for producers.
Renewable diesel is a fuel created by processing fats and oils from renewable sources to produce diesel. Its advantage is that it’s considered a “drop-in” fuel, meaning it can be used directly as an alternative to, or mixed with, traditional fossil fuel-based diesel. Imperial’s facility will use canola, among other fats and oils, as biofeedstock for producing renewable diesel. Alberta produces over five million tonnes of canola annually, making up 30 percent of Canada’s production last year.
