Canada's Refuel Energy planning to build renewable fuel plant in southern Ontario: company

Toronto-based Refuel Energy is planning to build a 3,000 b/d renewable fuel plant in southern Ontario, the company said in a statement.

The facility named Refuel XYZ will make sustainable aviation fuel as well as renewable diesel for the region, as well as for export to the US Northeast, the company said in a statement April 19.

The project will include renewable hydrogen for the domestic market, according to the Refuel website.

"We are thrilled to be building such a strong team with Topsoe and Fluor to produce our renewable fuels," Zohrab Mawani, co-founder of Refuel, said in the statement.

The facility would use a mix of waste fats, oils and greases (FOG) as feedstock, "such as regionally sourced used cooking oil, animal fats, and non-edible crop oils," said the statement.

Fluor is the contractor for plant design and engineering while Topsoe will provide technology to convert low-value feedstocks to renewable fuels that qualify for California's Low Carbon Fuel Standard credits, considered the gold standard for North American renewable fuel credit programs.

While California's LCFS market is weakening as more projects come online, they remain economic incentives. LCFS Q2 2022 prices are averaging $118.34/mt, compared with the $138.94/mt in Q1, according to Platts assessments from S&P Global Commodity Insights.

Refuel expects to make the final investment decision on the project in 2023, with production expected in 2025.

Starting in 2022, Canada's Clean Fuel Standard requires a gradual annual reduction of carbon intensity in transportation fuels by 13% below 2016 levels by 2030. The program will establish a credit market, and fuel producers can buy or create credits. Two provinces – Quebec and Alberta – already have implemented LCFS programs.

Final Clean Fuel Standard regulations are targeted for publication in 2022, according to the Environment Canada website.