Parkland Invests in Renewable Fuels

The $600 million Burnaby Refinery projects will advance the company’s decarbonization strategy.

May 10, 2022

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CALGARY, ALBERTA, CANADA—Parkland Corporation aims to increase renewable fuel production at its Burnaby Refinery in British Columbia to about 5,500 barrels per day and plans to build a stand-alone renewable diesel complex capable of producing roughly 6,500 barrels per day of renewable diesel.

“This is one of many steps we are taking to advance our commercial decarbonization strategy and provide our customers with a portfolio of low carbon products and services to help them meet their low carbon goals,” Parkland said in a news release.

Renewable fuels produced through these expansion efforts will have one-eighth of the carbon intensity of conventional fuels, according to Parkland, and will reduce related greenhouse gas emissions by about two megatons per year. In addition, Parkland is designing the stand-alone renewable diesel complex to ensure it does not increase emissions from the Burnaby Refinery.

Parkland's announcement follows collaboration with the government of British Columbia and supports the government's ambition to achieve net-zero emissions by 2050.

The company estimates that these projects will require an investment of about $600 million, with the majority of capital investment expected to be deployed in 2024 and 2025. Parkland has received BC Government support for over 40% of the project costs in the form of BC Low-Carbon Fuel Standard Compliance Credits.

"I applaud the Government of British Columbia for their vision and support of these innovative projects," said Bob Espey, president and chief executive officer, Parkland. "This announcement advances our decarbonization strategy and our commitment to provide customers with low carbon choices which help them meet their environmental goals. Renewable fuels play a critical role in Canada's climate ambitions by enabling customers to reduce their carbon footprint using their existing vehicle."

Parkland’s plans are expected to directly create up to 1,000 jobs during the construction phase. Following stakeholder consultation, the company aims to make a final investment decision in the second half of 2023, with production expected to commence in 2026. Parkland is currently assessing the feasibility and availability of financial support to produce Sustainable Aviation Fuel as part of these plans, in support of decarbonizing Canada's aviation sector.

"Parkland's plans to increase our province's renewable fuel capabilities support our Clean BC targets," said Hon. Bruce Ralston, minister of energy, mines and low carbon innovation. "This is a big step forward in our transition to a lower-carbon economy. Harnessing Parkland's technical expertise and infrastructure to lower the environmental impact of our transportation is something we can be proud of. When combined with BC's other sources of renewable power and efforts to electrify the passenger vehicle fleet, we continue to set the bar for Canada."