The Imperial Strathcona Refinery in Alberta is receiving a 12 per cent tax credit for its $720 million under-construction canola-based renewable diesel facility that is said to need millions of tonnes of canola seed per year.
The credit comes from the Province of Alberta’s Agri-Processing Investment Tax Credit, which offers a 12 per cent non-refundable tax credit when corporations invest $10 million or more in a project to build or expand a value-added agri-processing facility in the province.
RJ Sigurdson, provincial minister of agriculture and irrigation, described the facility — claimed to be the largest of its kind in Canada — as good news for provincial canola producers and a boost for the Province’s greenhouse gas reduction efforts.
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“When the facility is fully operational it will transform canola and other seed oils into renewable diesel that is lower in emissions than conventional fuels. To make this happen, Imperial will be sourcing most of its feedstock from canola producers right here in the province,” he said.
“We are pleased to know that Imperial will be sourcing low carbon hydrogen for its operations from Air Products in Edmonton. Using low carbon hydrogen to produce the lower emissions renewable diesel will help cut greenhouse gases.”
Chris Vervaet, executive director of the Canadian Oilseed Processors Association, called the announcement “a shining example of continued collaboration that will help support growth in Alberta’s two key economic sectors: energy and agriculture.”
“Local production of renewable fuels derived from locally grown canola provides an important market diversification opportunity right here in our own backyard that will benefit farmers, processors and the entire value chain in the province of Alberta.
“To put a finer point on this opportunity, this facility represents demand for canola seed that could be as large as two-and-a-half million metric tonnes per year. That’s the size of some of our largest export markets today.
“Simply put, a project of this magnitude is a game changer for our industry and a win-win for all parties involved.”
