Imperial Oil to make renewable diesel plant in Canada

Imperial Oil Limited recently announced that it is on track to build an international-level renewable diesel facility at its Strathcona refinery close to Edmonton, Alberta.

From locally-produced and cultivated feedstocks, this new complex is set to produce more than 1 billion litres of renewable diesel fuel, annually. The project is intended to reduce emissions in the Canadian transportation industry by around 3 million tons a year, which is equivalent to removing almost 650,000 passenger vehicles from the road for a year.

Blue hydrogen (hydrogen produced from natural gas with carbon capture and storage) will be used in renewable diesel manufacturing to significantly curb greenhouse gas emissions compared to conventional hydrogen production.

Annually, around 500,000 tonnes of carbon dioxide are predicted to be captured. To manufacture premium low-carbon diesel fuel, the blue hydrogen and bio-feedstock will be mixed with a patented catalyst.

Imperial Oil is now in partnership talks with government and industry including the governments of Alberta and British Columbia, both of which lent a consent to support this project through an agreement under Part 3 of their low-carbon fuel legislation.

Several elements will influence the final investment decision including government backing and clearances, market trends and economic competitiveness. The project is planned to generate approximately 600 direct construction employment as well as many more through investments by its commercial partners. Renewable diesel production is scheduled to begin in 2024.

The refinery's strategic importance to Imperial Oil's activities is highlighted by this investment. Strathcona is Western Canada's largest refinery that produces important products to keep its economy and communities moving forward.

Founded in 1880, Calgary-based Imperial Oil is one of the largest integrated oil companies of Canada, mainly engaged in oil and gas production, petroleum products refining, and marketing and chemical business.