Parkland Corporation plans to increase renewable fuel production at its Burnaby Refinery in British Columbia.
The company said it will build a stand-alone renewable diesel complex, within the Burnaby Refinery capable of producing approximately 6,500 barrels per day of renewable diesel. It will also expand existing co-processing volumes to approximately 5,500 barrels per day.
The plan may also include producing Sustainable Aviation Fuel (SAF), if funding can be obtained.
Renewable fuels produced through these plans will have one eighth of the carbon intensity of conventional fuels. They will reduce related greenhouse gas emissions by approximately two megatonnes per year.
In addition, Parkland is designing the stand-alone renewable diesel complex to ensure it does not increase emissions from the Burnaby Refinery.
Parkland said it estimates these projects will require an investment of approximately $600 million, with the majority of capital investment required in 2024 and 2025. It has received B.C. government support for over 40% of the project costs in B.C. Low-Carbon Fuel Standard Compliance Credits.
“I applaud the Government of British Columbia for their vision and support of these innovative projects,” said Bob Espey, Parkland’s president and CEO.
“This announcement advances our decarbonization strategy and our commitment to provide customers with low carbon choices which help them meet their environmental goals. Renewable fuels play a critical role in Canada’s climate ambitions by enabling customers to reduce their carbon footprint using their existing vehicle.”
The company said it will make its final investment decision in the second half of 2023, with production expected to commence in 2026. We are currently assessing the feasibility and availability of financial support to produce Sustainable Aviation Fuel (“SAF”) as part of these plans, in support of decarbonizing Canada’s aviation sector.