EDMONTON – Alberta is using a new tax credit to facilitate investment in a large-scale renewable diesel facility.
Imperial is building a $720-million renewable diesel facility, the largest in Canada, at the company’s Strathcona refinery. Once complete, the facility will convert locally sourced biofeed stocks like canola oil into lower-emission renewable diesel.
Alberta introduced the Agri-Processing Investment Tax Credit in spring 2023 to support economic growth and diversification.
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, a release said.
Through this program, Alberta’s government has granted Imperial conditional approval for a tax credit estimated at about $70 million.
“Imperial’s renewable diesel facility will provide an important new lower-emission offering to Canada’s transportation sector. We are excited that the main source of feedstock for the facility will be from crops in Western Canada and thank the Government of Alberta for their recognition of the project’s benefits to the agricultural industry and our collective greenhouse gas emissions reduction goals.,” said Imperial senior vice-president of sustainability, commercial development and product solutions Sherri Evans, in a statement.
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, and is expected to be complete by 2025.
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