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

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

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

The Calgary-based firm has touted the mission as the biggest of its type in Canada, aiming to supply a couple of billion litres per yr, or 20,000 barrels per day, of renewable diesel. Imperial says the gas has the potential to eradicate about three million tonnes of emissions per yr, in comparison with standard 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 supply premium lower-carbon diesel gas. The mission was first introduced in August 2021.

Final yr, Imperial mentioned a last funding choice for the renewable diesel facility was anticipated within the coming months, primarily based on components together with authorities help 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 fuel emissions from our personal operations and to assist prospects in important sectors of the economic system cut back their emissions,” CEO and president Brad Corson mentioned in a information launch on Thursday.

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

Imperial has laid out objectives to cut back its greenhouse fuel 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. Comply with him on Twitter @jefflagerquist.

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