Imperial Oil has announced that it will invest 720 million Canadian dollars ($539 million) to build the largest renewable diesel facility in Canada at its Strathcona refinery near Edmonton, Alberta. The project, which a business in Calgary will own, will manufacture 20,000 barrels per day of renewable diesel. It is anticipated that production will begin in the year 2025. Imperial anticipates it will soon receive regulatory approval for the project, which was initially announced in August 2021. The facility will produce renewable diesel by combining low-carbon hydrogen and bio feedstock with a proprietary catalyst. Imperial estimates that this will result in a reduction of approximately three million metric tons per year in greenhouse gas emissions compared to conventional fuels. Air Products will supply the low-carbon hydrogen that will be produced using carbon capture and storage technology. The development of supply agreements with third parties for bio feedstock is underway at Imperial. Imperial's vice president for downstream operations, Jon Wetmore, stated that the project had advanced rapidly to assist in securing feedstocks such as canola, which, before being utilized, must be processed through crush units and converted into canola oil. "Early mover advantage does help," Wetmore told Reuters, "we're conscious at some point there could not be enough crush capacity for all renewable diesel projects being proposed in Canada." The corporation acknowledges the possibility of this but also the benefit of being an early mover. The project will get partial funding from credits awarded under the Low Carbon Fuel Standard in British Columbia, and a "substantial portion" of the diesel produced will be provided to British Columbia to assist the province in meeting its emissions targets. The preparation of the site and the first stages of the building are already underway, and the project is anticipated to generate approximately 600 direct construction jobs. On the Toronto Stock Exchange, Imperial's share price was last seen at C$71.05, representing a gain of 1.3 percent. National Bank analyst Travis Wood wrote in a client letter, "We regard this as a neutral impact for now given the capital investment and the long-term adoption." Wood also praised Imperial for its ongoing strategic investments in pollution reduction for its businesses. So, in brief, Imperial (IMO) anticipates that the project at its Strathcona refinery near Edmonton will produce more than 1 billion liters per year of renewable diesel, the majority of which will come from feedstocks sourced locally and may contribute to a reduction of 3 million metric tons per year of greenhouse gas emissions in the transportation sector in Canada. In addition, Imperial Oil (IMO) has lately made public an extensive plan to repurchase a substantial number of its own shares, and the company possesses an appealing forward earnings multiple. Imperial Oil also stated that the project may take a bit longer due to some issues that might arise in the future. But, generally, we believe that we can finish the project on time and even invest more in the future.