Canadian convenience store operator and fuel retailer Parkland Crop (TSE:PKI) on Monday announced a CAD-600-million (USD 461.7m/EUR 436.7m) project to scale up the capacity of its crude and synthetic oil refinery in British Columbia and build a new renewable diesel complex at the site.
The plan envisages the construction of a standalone facility within the company's Burnaby refinery to produce about 6,500 barrels of renewable diesel daily. Under the initiative, Parkland will also expand the co-processing volumes at the refinery to around 5,500 barrels per day. Options are also being explored for the feasibility and availability of financial support to produce sustainable aviation fuel.
The project will be supported by the British Columbia government, which has committed to covering around 40% of the required cost in the form of BC Low-Carbon Fuel Standard Compliance Credits. The bulk of the capital investment is set to be deployed in 2024 and 2025.
Parkland intends to make a final investment decision in the second half of next year and is targeting production in 2026.
The Calgary, Alberta-based company estimates that the renewable fuels produced at its Burnaby refinery will have one-eighth of the carbon intensity of conventional fuels and lower related greenhouse gas emissions by roughly two megatonnes per year.
(CAD 1.0 = USD 0.769/EUR 0.728)
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