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ExxonMobil Affiliate to Invest $560M in Massive Renewable Diesel Facility
January 30, 2023
by Dan McCue
IRVING, Texas — ExxonMobil affiliate, Imperial Oil Ltd., is investing roughly $560 million to move forward with construction of the largest renewable diesel facility in Canada.
According to a statement issued by ExxonMobil, the project at Imperial’s Strathcona refinery is expected to produce 20,000 barrels of renewable diesel per day primarily from locally sourced feedstocks.
Once completed, it is estimated the facility could 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 Regulations.
The facility is a part of ExxonMobil’s plans through 2027 to invest approximately $17 billion in lower-emission initiatives.
“The Strathcona project is another example of how we are investing in advantaged facilities and applying our leading technology and decades of experience to develop lower-emission solutions for customers,” said Karen McKee, president of ExxonMobil Product Solutions, in a written statement.
“We continue to focus investments on markets like Canada, where well-designed policies support technologies that reduce life-cycle emissions,” McKee said.
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.
Site preparation and initial construction are already underway, according to ExxonMobil. Renewable diesel production is expected to start in 2025.
Dan can be reached at dan@thewellnews.com and at https://twitter.com/DanMcCue
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