Over $900 million is to be spent as Saskatchewan’s Covenant Energy is to build a refinery to produce renewable diesel and jet fuel on the north east edge of Lloydminster.
Construction is to begin in 2024 and production will come on stream in 2026.
Josh Gustafson, president and CEO says they will utilize canola as the raw material for production.
“So, we are looking at about 450,000 metric tonnes of feedstock per year – producing about 430 million litres of product per year.”
Gustafson adds the plant will provide 60 full time jobs and hundreds of jobs over the construction phase.
The CEO who farms in southeast Saskatchewan notes that “by harnessing the potential of prairie-grown resources, the refinery will pave the way for Lloydminster to become a leading hub of low-emission, renewable energy.” Also, the plant will be able to utilize even canola from a difficult crop season.
“We will take obviously the top-grade canola oil that is produced in the region, but we will also be able to take any oil coming from off-spec canola or heated canola. We can still utilize that oil – once it is processed,” says Gustafson.
The new plant will be doing some pre-treatment on-site, but they will take product from neighbouring processors like ADM, says Gustafson.
In a news release, mayor Gerald Aalbers says, “The arrival of Covenant Energy’s renewable energy refinery in Lloydminster signifies the power of collaboration between the Government of Saskatchewan, the City of Lloydminster and Covenant Energy. This milestone ushers in a new era of sustainable growth and solidifies Lloydminster as a prime business destination, creating jobs and fostering economic prosperity.”
The Lloydminster Oilfield Technical Society in a statement welcomes the new community partner to the Border City. President Roger Deeks says,”I believe this is a tremendous project that leverages Lloydminster’s oil and gas workforce and know-how. With both the operating and maintenance labour pools in place, the project has a leg-up on others. We look forward to incorporating more downstream oil and gas material into the 2024 Lloydminster Heavy Oil Show held next September.”
Gustafson confirmed that their capital expenditure for the refinery is $920 million.
The plant will be constructed on the northeast edge of Lloydminster – off 40 Avenue on some 40 acres of land.
