Imperial Oil, Air Products Sign Low-Carbon Hydrogen Supply Deal

By Adriano Marchese

Imperial Oil Ltd. has entered into an agreement with Air Products & Chemicals Inc. that will supply Imperial with low-carbon hydrogen for its proposed renewable-diesel complex in Alberta.

Imperial Oil said Tuesday that it will use Air Products' low-carbon hydrogen to produce renewable diesel at Strathcona near the province's capital city, Edmonton, which the company said will reduce greenhouse-gas emissions relative to conventional production.

The hydrogen and biofeedstock will be combined with a catalyst to produce premium low-carbon diesel fuel, it said.

Air Products is increasing investment into its Edmonton hydrogen facility to around 1.6 billion Canadian dollars (US$1.22 billion). The investment will be used to facilitate integration with Imperial's proposed project and help it in turn with its own emissions-reduction efforts, the company said.

Air Products will supply Strathcona with approximately 50% of the low-carbon hydrogen output from the 165-million-standard-cubic-feet-per-day hydrogen production complex, it said.

Imperial said its proposed complex is expected to produce more than 1 billion liters of renewable diesel a year.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

September 06, 2022 08:32 ET (12:32 GMT)

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