Aug 25 (Reuters) – Imperial Oil Ltd (IMO.TO), one of Canada’s largest oil producers and refiners, on Wednesday presented a plan to turn vegetable oil into renewable diesel at its 191 Strathcona refinery 000 barrels per day.
The project, which still requires final approval, is part of majority owner Exxon Mobil’s goal of producing more than 40,000 barrels per day of low-emission fuels by 2025.
Calgary-based Imperial aims by 2024 to build a hydrotreater and use blue hydrogen derived from fossil fuels to transform raw materials like canola and soybean oils into 20,000 barrels per day ( bpj) of renewable diesel, he said.
A decision to go ahead will require government support and approvals, favorable market conditions and a determination of the project’s economic competitiveness, an official said. Imperial Oil’s potential investment in the project has not been disclosed.
The Canadian Clean Fuels Standard, which comes into effect next year, aims to stimulate investment in clean energy technology and create a trading system that allows fuel suppliers who fall short of the targets. emission reduction targets to purchase credits generated by cleaner fuel producers.
“It enables faster and deeper decarbonization with a market-driven driver so that technologies can be developed more efficiently,” said Andy Madden, vice president of strategy and planning at Exxon.
Imperial’s production process would capture and store about 500,000 metric tonnes of carbon dioxide underground each year, Exxon said in a statement.
The Canadian Clean Fuels Standard aims to reduce greenhouse gas emissions by 30% from 2005 levels by 2030.
US refiners, including Valero Energy (VLO.N) and Marathon Petroleum (MPC.N), are using US and state incentives to produce renewable diesel.
If all renewable fuel projects were completed, US production of renewable diesel would total 330,000 bpd by the end of 2024, according to the US Energy Information Administration, or roughly 7% of 2020 diesel production according to calculations. from Reuters.
Reporting by Laura Sanicola; edited by Richard Pullin
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