Imperial Oil Invests $560 Million in Renewable Diesel Facility

Jan. 27, 2023
Canada refinery will tap locally sourced feedstocks and could help reduce greenhouse gas emissions by about 3 million metric tons per year

ExxonMobil announced its majority-owned affiliate, Imperial Oil Ltd, will invest about $560 million to move forward with construction of a renewable diesel facility in Canada. The project at Imperial’s Strathcona, Alberta, Canada, refinery is expected to produce 20,000 barrels of renewable diesel per day primarily from locally sourced feedstocks and could help reduce greenhouse gas emissions in the Canadian transportation sector by about 3 million metric tons per year, as determined in accordance with Canada’s Clean Fuel Regulation, according to a press release from ExxonMobil. The facility is a part of the corporation’s plans through 2027 to invest approximately $17 billion in lower-emission initiatives.

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 help reduce greenhouse gas emissions from the transportation sector, relative to conventional fuels.

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