Canada's largest renewable diesel facility comes online

EDMONTON — Strathcona County will be the new home of Canada's largest renewable diesel facility once Imperial Oil's $720-million project comes online.

Renewable diesel is fuel made by processing fats and oils from renewable sources to produce diesel. The benefit of renewable diesel is that it's referred to as a “drop-in” fuel, which means it can be used as a direct alternative, or in conjunction with, traditional fossil fuel-based diesel.

“We're extremely excited,” said Sherri Evers, Imperial Oil senior vicepresident of sustainability, during a Monday news conference at their Strathcona refinery.

Imperial's facility will use canola, among other fats and oils, as biofeedstock to help produce its renewable diesel. Alberta produces more than five million tonnes of canola annually, accounting for 30 per cent of Canada's production last year.

Chris Vervaet, executive director of the Canadian Oilseed Processors Association, spoke highly of the new facility's impact on canola farmers.

“We are excited to see this investment being made in Alberta's canola country,” Vervaet said in a news release. “Local production of renewable fuels derived from locally grown canola provides an important market diversification opportunity right here in our own backyard.”

Alberta Agriculture and Irrigation Minister RJ Sigurdson said Imperial's new facility qualified for Alberta's agri-processing investment tax credit, which was introduced by the province in 2023. To qualify for the credit, companies have to invest a minimum of $10 million towards a new or expansion of an existing “value-added” agri-processing facility.

“We understand global companies like yours have lots of options when it comes to business expansion. And that's why we are doing what it takes to ensure Alberta offers a welcoming, business-friendly climate,” said Sigurdson.

Imperial's Strathcona refinery has been in operation for more than 75 years, and construction of the renewable diesel facility is already underway. Its new facility is expected to produce more than one billion litres of renewable diesel per year.

Evers said the facility will help both Imperial and Canada hit sustainability goals.

“It's the centrepiece of a suite of investments to help Canada meet its low carbon fuel standards and demonstrates our commitment to investing in projects and technologies that reduce greenhouse gas emissions,” said Evers.

The site is expected to be up and running by 2025.