Imperial Oil Ltd. on July 28 announced work is underway to construct a renewable diesel facility at the company’s Strathcona refinery near Edmonton, Alberta. The 20,000-barrel-per-day project is expected to begin production in 2025. Company officials discussed the project during Imperial’s second quarter earnings call.

Imperial first announced plans to construct a renewable diesel complex at its Strathcona refinery in mid-2021. The company announced its final investment decision in January 2023, indicating it would move ahead with the C$720 ($560 million) project.

Imperial previously announced that the renewable diesel facility will use low-carbon hydrogen produced with carbon capture and storage (CCS) technology. The company in January said it has entered into an agreement with Air Products for the low-carbon hydrogen supply. Work was also underway earlier this year to develop agreements for feedstock supply.

In its second quarter earnings release, Imperial confirmed that the renewable diesel project passed a significant milestone during the three-month period, noting that key contractors were mobilized to the project site in May to commence facility construction work.

“We support Canada’s vision for a lower-emission future, and I am encouraged to see the work now underway to build Canada’s largest renewable diesel facility,” said Brad Corson, president and CEO of Imperial. “The project remains on track for a 2025 start-up and is expected to produce more than 1 billion liters of renewable diesel annually to help meet strong demand under Canada’s Clean Fuel Regulations and reduce reliance on costly imports.”

According to Corson, the project is progressing well, with detailed engineering and equipment fabrication progressing as planned. He said current construction activities are focused on underground infrastructure work and tank foundation installation.