Pennsylvania-based Air Products (NYSE: APD) has recently agreed to supply low-carbon hydrogen to Imperial Oil, Canada’s second-largest integrated oil company, for its renewable diesel plant near Edmonton in Alberta. The low-carbon hydrogen will be delivered from Air Products’ planned hydrogen Edmonton facility via pipeline to Imperial’s Strathcona refinery, where it will be used in conjunction with locally sourced vegetable oils to produce low-carbon diesel fuel. Air Products’ facility, scheduled to open in 2024, will generate 165 million cubic feet per day of hydrogen, with approximately half of it allocated to Imperial.
Imperial’s renewable diesel complex is slated to become the largest facility of its kind in Canada, projected to produce over 1 billion liters of low-carbon diesel fuel annually, equivalent to taking an estimated 650,000 vehicles off the road in terms of environmental impact. The company’s renewable diesel complex project, with an estimated cost of C$500 million, was first announced in August 2021, with a final investment decision anticipated in 2022. Jon Wetmore, Imperial’s vice president of operations, emphasized the company’s commitment to investing in a low-carbon future, noting that discussions with other businesses and governments are ongoing before finalizing the plans.
Air Products has decided to increase its overall investment in the hydrogen facility to C$1.6 billion (US$1.2 billion) to accommodate the Imperial contract. Dr. Samir Serhan, Chief Operating Officer of Air Products, expressed the company’s goal of showcasing the feasibility of net-zero world-scale hydrogen facilities. He underscored Canada’s rapid adoption of an energy transition that prioritizes low-carbon hydrogen use and emphasized Air Products’ demonstration that world-scale hydrogen facilities can achieve net-zero carbon emissions.
Headquartered in Upper Macungie Township, Air Products operates globally in over 50 countries, focusing on developing, engineering, constructing, owning, and operating significant industrial gas projects that convert natural resources sustainably into syngas for the production of high-value energy, fuels, and chemicals. Imperial is recognized as a pioneer in utilizing technology and innovation to harness Canada’s energy resources. The company is a major petroleum refiner in Canada, a significant crude oil producer, a leading petrochemical producer, and a prominent fuels marketer.
