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Exxon Mobil's Canada unit to produce renewable diesel by 2024, joins growing list of refiners

By Arghyadeep on Aug 26, 2021 | 03:36 AM IST

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Exxon Mobil Corp’s Canadian business unit Imperial Oil Ltd will produce renewable diesel at a new facility in Alberta, Canada, joining other major refiners in an effort to curb greenhouse gases.

Imperial plans to construct a renewable diesel complex at its Strathcona refinery near Edmonton and expects to produce about 20,000 barrels per day of renewable diesel in 2024 after construction completes.

Exxon, the major shareholder of Imperial, owning a 69.6% stake, said it could reduce emissions in the Canadian transportation sector by about 3 million metric tons per year.

Imperial joins major crude refiners Phillips 66 and Valero Energy Corp in boosting lower-emission biofuel output as the increasing alarm over the impact of global warming spurs governments and companies to step up efforts.

Earlier this month, the United Nations published a report warning more catastrophic changes in weather if failed to reduce carbon emissions immediately.

“Canada’s proposed low-carbon fuel policies incentivize the development of lower-emission fuels that can make meaningful contributions to the hard-to-decarbonize sectors of the economy, including transportation,” Ian Carr, president of ExxonMobil Fuels & Lubricants Co, said in the statement.

The project is part of ExxonMobil’s plans to provide more than 40,000 barrels per day of low-emissions fuels by 2025. The company has agreed to purchase up to 5 million barrels of renewable diesel annually.

The new facility will use locally grown plant-based feedstock and hydrogen with carbon capture and storage as part of the manufacturing process, the company said.

Renewable diesel is a biofuel that is chemically the same as petroleum diesel fuel produced from cellulosic biomass materials and can be used in existing diesel engines.

As more fossil-fuel refiners announce plans to enter the market, prices for soybean oil, which is often used to produce renewable fuels, increased more than 40% this year.

Photo Credit: BusinessWire

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