Covenant Energy developing 325M liter per year renewable diesel plant in Saskatchewan

March 18, 2021 |

In Canada, Covenant Energy is developing a renewable fuel processing plant which is planned to be constructed in southern Saskatchewan with the following approximate characteristics:

6,500 barrels a day, 300-325 million liters per year of production capacity. 

Finished fuels including renewable diesel, arctic-grade renewable diesel, and sustainable aviation fuel are all to be produced at this facility. 

Greenhouse gas emission reductions in the range of 80 to 85 per cent when compared to fossil fuel diesel. 

Creation of demand for 35 million bushels of canola seed (worth roughly $500 million) to produce 325,000-350,000 metric tons of canola oil feedstock per year. 

Low greenhouse-gas footprint: recycled hydrogen will be utilized in the production process. 

Current estimates of local labor market impact include up to 60 permanent full-time positions plus hundreds of thousands of hours of employment throughout the project construction.

Covenant Energy has completed initial pre-FEED engineering and feedstock studies, as well as a marketing, demand, and pricing study. Provided the project receives all the necessary approvals, it is slated to start production in the second half of 2023.

While this project is advancing, it is important to restate that the right demand signal for clean fuels is imperative for the approval of this renewable diesel facility. The federal government’s Clean Fuel Regulations, published as a draft in December 2020, would be the 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. 

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Category: Fuels

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