By Robb M. Stewart


Imperial Oil Ltd. said it plans to invest about 720 million Canadian dollars (US$538 million) to push ahead with construction of what it says would be Canada's largest renewable diesel facility, as part of its efforts to produce fuel with reduced greenhouse-gas emissions.

The Canadian oil producer and petroleum refiner said Thursday that the renewable diesel project, which was first announced in 2021, is expected to produce starting in 2025 more than 1 billion liters of renewable diesel annually, mainly from locally sourced feedstock, at its Strathcona refinery near Edmonton, Alberta.

The project is expected to potentially reduce greenhouse-gas emissions in the Canadian transportation sector by about 3 million metric tons a year. Imperial Oil said it plans to supply a significant portion of the renewable diesel from Strathcona to British Columbia.

The facility would use low-carbon hydrogen produced with carbon-capture and storage technology, and agreements are under development for the biofeedstock supply, which would be combined with the low-carbon hydrogen to produce the lower-emission fuel, the company said.

Regulatory approval for the project is expected in the near term, the company said.

"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," said Brad Corson, Imperial chairman, president and chief executive officer.

"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," Mr. Corson said.

Last month, Imperial Oil forecast its capital spending in 2023 would be C$1.7 billion, including for the planned ramp-up of the Strathcona renewable diesel project.


Write to Robb M. Stewart at robb.stewart@wsj.com


(END) Dow Jones Newswires

01-26-23 0857ET