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Canada's Parkland sees 2021 bio feedstock output up 125% on demand for low-carbon fuels

Highlights

Parkland forecasts 2021 production at 100 million liters

Planning commercial bio jet output at Burnaby refinery

New York — Parkland expects to increase biofeedstock processing at its 55,000 b/d refinery in British Columbia by 125% in 2021, the company's CEO said March 5.

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Parkland co-processed 44 million liters of bio feedstocks in 2020 at its Burnaby refinery, up 140% from 2019, CEO Robert Espey said on an earnings call.

"We have high confidence in our capability to increase this by 125% in 2021," Espey said. "This equates to 100 million liters of bio feedstocks or the equivalent of removing the impact of 80,000 passenger vehicles' emissions."

"Our Burnaby refinery was the first facility in Canada to use existing infrastructure and equipment to co-produce Canadian bio-feedstocks such as canola oil and tallow along side crude oil to produce low-carbon fuels," Espey said. "This includes gasoline and diesel with a renewable component and progressing towards commercialization of a low-carbon aviation fuel or bio jet."

Readying for Canada's Clean Air Standard

Through co-processing and blending Calgary-based Parkland can reduce the carbon content of diesel by 15%, Espey said. While Burnaby's two primary feedstocks are tallow and canola oil, both readily available in Canada, Espey said the company continues to work with second-generation technologies to create feedstocks, such as those using wood-product byproducts.

However, he expects an increase in canola production in response to higher demand for renewable feedstocks.

British Columbia already has in place its Renewable and Low Carbon Fuel Requirement regulation to lower carbon emissions. This includes a renewable credit system based on the carbon intensity of the fuel, similar to California's Low Carbon Fuel Standard, which allows the buying and selling of credits.

Canada's federal Clean Air Standard goes into effect in 2022. It calls for the reduction of nationwide carbon intensity from 2016 levels and uses the life-cycle approach in assessing fuel carbon intensity beginning with production, processing and end-user applications. In 2022, the reduction of 2.4 grams of carbon dioxide equivalent per megajoule of energy is mandated and increases in 2030 to 12 gCO2e/MJ.

Parkland has plans for a small refinery turnaround at the end of the fourth quarter and also has some "other maintenance at the facility" which will reduce the plant's annual refinery utilization rate to about 85%.