Imperial Oil Ltd., a prominent Canada-based integrated oil company, announced on May 2 that its highly anticipated renewable diesel facility located at the Strathcona refinery near Edmonton, Alberta, is on track to commence operations in mid-2025. The company confirmed that construction of the large-scale project is slated for completion within the current second quarter of the year.

The ambitious venture, first announced in mid-2021, involves the development of a 20,000-barrel-per-day renewable diesel complex integrated into Imperial Oil’s existing Strathcona refining infrastructure. Following a final investment decision in January 2023, construction swiftly commenced, marking a significant step for the company into the rapidly growing renewable fuels sector.

Upon reaching full operational capacity, the Strathcona renewable diesel plant is projected to produce over 1 billion liters (equivalent to approximately 264.17 million gallons) of renewable diesel annually. This substantial volume underscores Imperial Oil’s commitment to contributing to lower-carbon fuel alternatives and meeting the increasing demand for sustainable transportation fuels.

During the company’s first-quarter earnings call, Imperial Oil Chairman and Chief Executive Officer Brad Corson provided an encouraging update on the project’s progress. He stated that the company anticipates the completion of construction on the renewable diesel facility “shortly here in the second quarter.” Furthermore, Corson indicated that the initiation of operations is expected to follow in the subsequent months, placing the project squarely on schedule for a mid-2025 launch.

The renewable diesel produced at the Strathcona refinery is expected to be a lower-carbon alternative to conventional diesel fuel. Renewable diesel is typically produced from sustainable feedstocks such as vegetable oils, animal fats, and used cooking oils. Its use can contribute to a reduction in greenhouse gas emissions compared to traditional petroleum-based diesel, aligning with broader efforts to combat climate change and promote environmental sustainability.

The integration of the renewable diesel facility within an existing refinery offers potential synergies in terms of infrastructure, logistics, and operational expertise. This strategic move allows Imperial Oil to leverage its established refining capabilities while diversifying its product portfolio to include greener energy solutions.

The commencement of operations at the Strathcona renewable diesel facility will mark a significant milestone for Imperial Oil and for Canada’s renewable fuels landscape. It represents a substantial investment in cleaner energy production and highlights the ongoing evolution of the energy sector towards more sustainable practices. The project is also expected to create economic benefits for the region through job creation and increased economic activity. As the mid-year target approaches, stakeholders will be closely watching the progress towards the operational launch of this key renewable diesel facility.