Canadian oil sands producer Imperial Oil will invest C$720mn ($560mn) into a planned low-carbon diesel facility at its Strathcona refinery in British Columbia. The project is expected to produce more than 1bn l/yr of diesel from locally sourced biofeedstock and blue hydrogen supplied by industrial gases firm Air Products.

Air Products is developing a blue hydrogen facility in Edmonton in Alberta, which is expected to come onstream in 2024. Half of the project’s output has been contracted to supply Imperial’s Strathcona facility.

Imperial plans to start producing the low-carbon diesel—which will be sold as a premium product—in 2025. The firm expects the facility to enable the Canadian transport sector to eliminate 3mn t/yr of greenhouse gas emissions.

C$720mn – Investment into Strathcona low-carbon diesel extension

“Imperial supports Canada’s vision for a lower-emission future, and we are making strategic investments to reduce greenhouse gas emissions from our own operations and to help customers in vital sectors of the economy reduce their emissions,” says Imperial CEO Brad Corson.

“The investment at our Strathcona refinery will deliver immediate benefits to the local economy, creating jobs and contributing to a lower-emission energy future for our employees, neighbours and communities.”

Regulatory approval on the facility is pending.

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Author: Polly Martin