Imperial Oil has started construction of what will be the country’s largest renewable diesel facility and a major new customer for Alberta canola farmers.
With an ever-increasing amount of canola being crushed domestically, Imperial is moving quickly to secure feedstocks such as canola for its new facility at its Strathcona refinery near Edmonton, said a company official.
“Early mover advantage does help. We’re aware at some point there might not be enough crush capacity for all the renewable diesel projects being contemplated in Canada,” said Jon Wetmore, Imperial’s vice-president for downstream.
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The facility is expected to produce more than one billion litres annually, “primarily from locally sourced feedstocks,” Imperial said in a news release. While there are a variety of feedstocks, including soy oil and animal fats, that can be used to make renewable diesel, the locally sourced proviso suggests the company will be using a lot of canola oil.
Alberta is home to four of the 11 canola crushing plants on the Prairies: Cargill (Camrose), Bunge (Fort Saskatchewan), ADM (Lloydminster) and Richardson International (Lethbridge).
An expansion of crushing capacity is underway in Saskatchewan, where Richardson plans to double its handle at Yorkton, while Cargill and Viterra are both planning new facilities in the Regina area.
Much of the Strathcona facility’s output of 20,000 barrels per day of renewable diesel will head to B.C. to help that province meet its emissions-reduction goals. The project will be partly funded by credits granted under B.C.’s Low Carbon Fuel Standard.
“Imperial supports Canada’s vision for a lower-emission future, and 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,” Imperial president and CEO Brad Corson said in the release.
The renewable diesel project was first announced in August 2021. The company said site preparation and initial construction have begun and production is expected to start in 2025.
