ExxonMobil announced its majority-owned affiliate, Imperial Oil Ltd, will contribute an investment of $560 million to construct the largest renewable diesel facility in Canada.

According to calculations made in accordance with Canada’s Clean Fuel Regulation, the project at Imperial’s Strathcona refinery is anticipated to produce 20,000 barrels of renewable diesel per day, mostly from locally sourced feedstocks, and could reduce greenhouse gas emissions in the country’s transportation sector by about 3 million metric tonnes annually.

“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. “We continue to focus investments on markets like Canada, where well-designed policies support technologies that reduce life-cycle emissions.”

To assist Canada satisfy low emission fuel standards, Imperial’s renewable diesel factory will employ low-carbon hydrogen produced with carbon capture and storage technology. For the provision of low-carbon hydrogen, Imperial has a contract with Air Products, and it is also working on arrangements with other companies for the supply of biofeedstock. In comparison to traditional fuels, the low-carbon hydrogen and biofeedstock will be blended with a specialised catalyst to make premium lower-emission diesel fuel, which will aid in lowering greenhouse gas emissions from the transportation sector.

Initial building is starting, as is site preparation. Production of renewable diesel is anticipated to begin in 2025. 600 direct construction jobs are anticipated to be generated by the project, and hundreds more are anticipated to result from investments made by commercial partners.