Alberta grants 12% tax credit to Imperial for renewable diesel facility

In Canada, Alberta’s government introduced the Agri-Processing Investment Tax Credit in spring 2023 to support economic growth and diversification. The tax credit is attracting large-scale investment in value-added manufacturing with Imperial’s C$720-million project to build the largest renewable diesel facility in Canada. When production begins in 2025, Imperial’s new facility will convert locally sourced biofeedstocks like canola oil into lower-emission renewable diesel, creating new demand for Alberta producers.

Imperial’s renewable diesel facility is the first of its kind in Alberta and will put the province on the map as a significant producer within Canada. It also contributes to Alberta’s goal of lowering emissions as renewable diesel has potential to reduce annual greenhouse gas emissions by about three million metric tonnes compared with conventional fuels. The new facility at the Strathcona refinery is expected to produce more than one billion litres of renewable diesel per year, or 20,000 barrels per day.

To be considered for the tax credit program, corporations must invest at least $10 million in a project to build or expand a value-added agri-processing facility in Alberta. The program offers a 12 per cent non-refundable tax credit base on eligible capital expenditures. Through this program, Alberta’s government has granted Imperial conditional approval for a tax credit estimated at about $70 million.