Imperial approves $720M for largest renewable diesel facility in Canada at Strathcona; 1B liters per year
27 January 2023
ExxonMobil’s majority-owned affiliate Imperial Oil will invest about $720 million (US$560 million) to move forward with construction of the largest renewable diesel facility in the country. (Earlier post.) The project at Imperial’s Strathcona refinery near Edmonton is expected to produce more than one billion liters of renewable diesel annually—about 20,000 barrels per day —primarily from locally sourced feedstocks.
Use of the renewable diesel could reduce missions in the Canadian transportation sector by about 3 million metric tons per year, as determined in accordance with Canada’s Clean Fuel Regulation.
Regulatory approval for the project is expected in the near term.
The renewable diesel project was first announced in August 2021 (earlier post), with the Province of British Columbia supporting this project through a Part 3 Agreement under the BC low carbon fuel standard. A significant portion of the renewable diesel from Strathcona will be supplied to British Columbia in support of the province’s plan to lower carbon emissions. Imperial also intends to use renewable diesel in operations as part of the company’s emission reduction plans.
Imperial’s renewable diesel facility will use low-carbon hydrogen produced with carbon capture and storage technology to help Canada meet low emission fuel standards. Imperial has entered into an agreement with Air Products for low-carbon hydrogen supply and is developing agreements with other third parties for biofeedstock supply. The low-carbon hydrogen and biofeedstock will be combined with a proprietary catalyst to produce premium lower-emission diesel fuel and will reduce greenhouse gas emissions relative to conventional fuels.
Site preparation and initial construction are underway. Renewable diesel production is expected to start in 2025. The project is expected to create about 600 direct construction jobs, along with hundreds more through investments by business partners.