Imperial Oil Ltd. on April 26 released first quarter financial results, confirming that construction on its renewable diesel project under development at its Strathcona refinery near Edmonton, Alberta, is progressing as scheduled and remains on track for startup in 2025.

Imperial Oil in mid-2021 announced plans to construct a 20,000-barrels per day renewable diesel complex at its Strathcona refinery. The company made a final investment decision in January 2023, with construction beginning soon after.

During a first quarter earnings call, Imperial Oil President and CEO Brad Corson said a number of process unit modules have arrived on site, including the main reactor, which was fully installed during the quarter. 

Corson also discussed work to secure renewable feedstock. He noted the company will primarily process feedstock sourced from agricultural producers in Western Canada and thanked the government of Alberta for its recent recognition of the biorefinery’s benefits to the agricultural industry through the Agri-Processing Investment Tax Credit Program. 

That tax credit program, established in 2023, offers a 12% non-refundable tax credit bas on eligible capital expenditures. To be considered for the program, corporations must invest at least $10 million in a project to build or expand a value-added agri-processing facility in Alberta. The Alberta government on April 22 announced that the Strathcona biorefinery project had qualified for the program, indicating that Imperial has received conditional approval for an estimated $70 million in tax credits.