Covenant Energy, a Saskatchewan-based renewable fuel company, is planning to build a renewable diesel processing plant in Southern Saskatchewan.
The expectation is 6,500 barrels a day; 300-325 million litres 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. The company anticipates greenhouse gas emission reductions in the range of 80 to 85 per cent when compared to fossil fuel diesel.

It anticipates creation of demand for 35 million bushels of canola seed, worth roughly $500 million, to produce 325-350 thousand tonnes of canola oil feedstock per year. The current estimate sees up to 60 permanent full-time positions plus hundreds of thousands of hours of employment throughout construction.

The company says 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.  Provided the project receives all the necessary approvals, it is slated to start production in the second half of 2023.