Imperial Oil Launches Canada's Largest Renewable Diesel Plant

Imperial Oil has started production at its Strathcona facility in Alberta, Canada's largest renewable diesel plant. The facility uses vegetable and agricultural oils as feedstock to produce lower-emission fuels for Canada's transportation sector.

Imperial Oil has initiated production at its Strathcona facility in Alberta, marking the commencement of operations at Canada's largest renewable diesel plant. The facility, designed to process more than 1 billion litres of renewable diesel annually, uses vegetable and agricultural oils as feedstock to produce lower-emission fuels for the transportation sector [1].

The C$720-million Strathcona plant, located near Edmonton, Alberta, is the first of its kind in Canada. Imperial Oil's CEO, John Whelan, announced the start of production during the company's earnings conference call. The facility's construction and commissioning were completed during the second quarter, demonstrating Imperial's commitment to renewable energy [1].

While the plant has sufficient grey hydrogen to start operations, the longer-term supply of blue hydrogen, or hydrogen produced from natural gas using carbon capture and storage, remains uncertain. This uncertainty may impact the speed of the facility's ramp-up. Imperial Oil has expressed that the viability of further hydrogen supplies and blue hydrogen will influence the plant's production levels [1].

Imperial Oil's second-quarter earnings report reflected the impact of lower crude prices and a decline in refinery throughput. The company's net income fell to C$949 million, or C$1.86 per share, compared to C$1.13 billion, or C$2.11 per share, in the same period last year. Total throughput volumes decreased to 376,000 barrels per day, while refinery utilization stood at 87%, down from 89% in the previous year [1].

Despite these challenges, Imperial Oil's upstream production for the second quarter increased to 427,000 gross barrels of oil equivalent per day, marking its highest second quarter in more than 30 years. The company's earnings exceeded analyst estimates, but revenues fell by 16% year-over-year to C$11.23 billion [2].

Imperial Oil's investment in renewable diesel production underscores its strategy to diversify its energy portfolio and reduce its carbon footprint. The successful start of production at the Strathcona facility positions the company to contribute to Canada's transition towards cleaner energy sources.

References:
[1] https://www.reuters.com/business/energy/canadas-imperial-oil-posts-lower-quarterly-profit-announces-first-production-2025-08-01/
[2] https://seekingalpha.com/news/4476777-imperial-oil-starts-production-at-canadas-largest-renewable-diesel-plant