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Imperial Oil plans to produce renewable diesel in Canada

25 August 2021

ExxonMobil announced its majority-owned affiliate, Imperial Oil Ltd., is moving forward with plans to produce renewable diesel at a new complex at its Strathcona refinery in Edmonton, Alberta, Canada. When construction is complete, the refinery is expected to produce approximately 20,000 barrels per day of renewable diesel. The complex will utilize locally grown plant-based feedstock, such as canola and soybean oils.

The renewable diesel production process will utilize ‘blue’ hydrogen, which is produced from natural gas with carbon capture and storage (CCS). Approximately 500,000 metric tons of CO2 are expected to be captured each year utilizing CCS. The blue hydrogen and biofeedstock will be combined with a proprietary catalyst to produce premium diesel fuel.

Under Canada’s proposed Clean Fuel Standard, fossil fuel suppliers would have to gradually reduce the carbon intensity (CI) of most of the liquid fossil fuels they produce and import into Canada. Over the period of 2022-2030, the Clean Fuel Standard would lead to a decrease of approximately 13%, below 2016 levels, in the carbon intensity of liquid fuels used in Canada. For instance, the carbon intensity of diesel and gasoline fuels would have to decrease from a baseline value of 96 gCO2e/MJ to 84.0 gCO2e/MJ by 2030.

A final investment decision will be based on several factors, including government support and approvals, market conditions and economic competitiveness, ExxonMobil said. Renewable diesel production is anticipated to start in 2024.

The Strathcona renewable diesel project is part of ExxonMobil’s plans to provide more than 40,000 barrels per day of low-emissions fuels by 2025.

Source: ExxonMobil