Calgary-based Parkland Corp. is considering a duo of projects that would involve increasing coprocessing of biofeedstocks with conventional crude oil and building a grassroots complex for production of renewable diesel at subsidiary Parkland Refining (B.C.) Ltd.’s 55,000-b/d refinery on Burrard Inlet in North Burnaby, near North Vancouver, BC.
Announced on May 9, the proposed projects come as part of Parkland’s plan to increase the refinery’s supply of low-carbon transportation fuel options to customers in alignment with the operator’s broader commercial decarbonization strategy, Parkland said in a release.
Alongside expanding the refinery’s existing coprocessing volumes to about 5,500 b/d, the proposal would include construction of a renewable diesel complex with a production capacity of about 6,500 b/d, the combined environmental impact of which would equate to permanently removing about 700,000—or 25%—of passenger vehicles currently on British Columbia’s roads, according to the operator.
In addition to having one-eighth the carbon intensity of conventional fuels, renewable fuel production volumes produced by the projects would reduce related greenhouse gas (GHG) emissions by about 2 megatonnes/year, Parkland said. The company also confirmed the proposed standalone renewable diesel complex—currently under design—would not increase emissions from the refinery.
Estimated at a combined cost of $600 million (Can.)—most of which would be spent in 2024-25—Parkland said it expects to take final investment decision on the potential projects in second-half 2023.
With more than 40% of the total costs of the projects already covered by support from the government of British Columbia in the form of compliance credits under its provincial low carbon fuel standard (BC LCFS), the proposed coprocessing expansion and new renewable diesel complex would begin production in 2026, the operator said.
As part of these plans, however, Parkland additionally confirmed it is also currently assessing feasibility and availability of financial support to produce sustainable aviation fuel (SAF) in support of decarbonizing Canada’s aviation sector.
Under development and in collaboration with the government of British Columbia, Parkland’s proposed coprocessing and renewable fuel production plans at Burnaby collectively come as part of the operator’s commitment to furthering both the province and Canada’s transition to lower-emission fuels and a lower-carbon economy, as well as the country’s national ambition to achieve net-zero emissions by 2050, Parkland and the provincial government said.
Renewable record
Currently exploring the use of forest residuals, wastewater biomass, and carbon-capture liquids as potential feedstocks, Parkland’s Burnaby refinery—which has been processing renewable biofeedstocks such as canola oil and tallow alongside conventional crude using existing infrastructure since 2017—coprocessed over 86 million l. of Canadian biofeedstock during 2021, which equated to removing more than 70,000 passenger vehicles/year from the road by yearend, according to the operator’s annual information form for the financial year ending Mar. 17, 2022.
The refinery’s coprocessing capabilities in 2021 nearly doubled from the previous year, when the operator processed about 44 million l. of canola and tallow biofeedstocks from Canadian sources (OGJ Online, Feb. 18, 2021).