Imperial Oil to take a position $720M in renewable diesel plant close to Edmonton

Calgary-based Imperial Oil says its renewable diesel project will be the largest of its kind in Canada. (GETTY)

Calgary-based Imperial Oil says its renewable diesel undertaking would be the largest of its type in Canada. (GETTY)

Imperial Oil (IMO.TO)(IMO) says it would make investments $720 million to advance its Strathcona renewable diesel facility close to Edmonton.

The Calgary-based firm has touted the undertaking as the most important of its type in Canada, aiming to provide a couple of billion litres per 12 months, or 20,000 barrels per day, of renewable diesel. Imperial says the gas has the potential to get rid of about three million tonnes of emissions per 12 months, in comparison with typical fuels.

Imperial tasks renewable diesel manufacturing will start in 2025. The corporate says hydrogen and biofeedstock will probably be mixed with a proprietary catalyst to provide premium lower-carbon diesel gas. The undertaking was first introduced in August 2021.

Final 12 months, Imperial stated a remaining funding determination for the renewable diesel facility was anticipated within the coming months, primarily based on elements together with authorities assist and approvals, market situations and financial competitiveness.

“Imperial helps Canada’s imaginative and prescient for a lower-emission future, and we’re making strategic investments to cut back greenhouse gasoline emissions from our personal operations and to assist clients in very important sectors of the financial system cut back their emissions,” CEO and president Brad Corson stated in a information launch on Thursday.

In September, Imperial introduced a long-term contract with Air Merchandise and Chemical substances (APD ) to produce low-carbon hydrogen for the proposed renewable diesel advanced. The corporate says it’s searching for third events for bio-feedstock provide wanted to provide renewable diesel gas.

Imperial has laid out targets to cut back its greenhouse gasoline depth by 30 per cent by 2030 and attain net-zero within the firm’s oilsands operations by 2050.

The corporate will report fourth-quarter 2022 monetary outcomes on Jan. 31.

New York-listed shares added 1.2 per cent to $52.70 as at 9:45 a.m. ET Thursday.

Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Observe him on Twitter @jefflagerquist.

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