Covenant Energy is progressing with its plans for a new renewable diesel facility.
The processing plant, which is planned to be constructed in southern Saskatchewan will produce 6,500 barrels a day of renewable diesel, with a production capacity of 300-325 million litres per year.
Additionally arctic-grade renewable diesel and sustainable aviation fuel (SAF) are all to be produced.
Covenant Energy has completed initial pre-FEED engineering and feedstock studies, as well as a marketing, demand and pricing studies. Provided the project receives all the necessary approvals, it is slated to start production in the second half of 2023.
The federal government's Clean Fuel Regulations, published as a draft in December 2020, is a key driver of demand for this project and is critical for its success.
Planned with the future in mind, the current design would enable Covenant Energy to invest in doubling the facility production capacity at a later time.
Josh Gustafson, President and CEO, Covenant Energy, said: “Covenant Energy is eager to be a part of attaining Canada's environmental sustainability and net-zero commitments in a way that will stimulate the Saskatchewan economy. Personally, being deeply rooted in the agricultural industry as a member of a fifth generation Saskatchewan farming family with over 13,000 acres of production, I see the positive future impact and I am excited about bringing value-added opportunities.
“We are also excited to explore partnership with the oil and gas industry through fuel blending to bring longevity and diversity to a region that traditionally produces other fossil fuels."
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