Alberta set to house Canada’s largest renewable diesel facility

Alberta’s government introduced the Agri-Processing Investment Tax Credit in spring 2023 to support economic growth and diversification.

While the tax credit is attracting large-scale investment in value-added manufacturing, Alberta is set to house Canada’s largest renewable diesel facility.

Imperial is announcing a $720-million project, with production set to begin in 2025. Imperial’s new facility will convert locally sourced biofeedstocks like canola oil into lower-emission renewable diesel, creating new demand for Alberta producers.

Imperial’s renewable diesel facility is the first of its kind in Alberta, and will put the province on the map as a significant producer within Canada. According to the Government of Alberta, it also contributes to Alberta’s goal of lowering emissions as renewable diesel has potential to reduce annual greenhouse gas emissions by about three million metric tonnes compared with conventional fuels.

The new facility at the Strathcona refinery is expected to produce more than one billion litres of renewable diesel per year, or 20,000 barrels per day.

RJ Sigurdson, Minister of Alberta Agriculture and Irrigation, says the government is doing what it takes to make sure Alberta offers a business-friendly regulatory climate that attracts cutting edge bioprocessing projects like Imperial’s renewable diesel facility.

“Our Agri-Processing Investment Tax Credit program builds on other competitive tax advantages that encourage corporations like Imperial to invest in our province, create jobs, and make an economic impact,” says Minister Sigurdson.

To be considered for the tax credit program, corporations must invest at least $10 million in a project to build or expand a value-added agri-processing facility in Alberta. The program offers a 12 per cent non-refundable tax credit base on eligible capital expenditures. Through this program, Alberta’s government has granted Imperial conditional approval for a tax credit estimated at about $70 million.

Construction on the new facility is already underway at Imperial’s Strathcona refinery. The project is creating about 600 local construction jobs for Albertans and hundreds more through investments by business partners.