Imperial Oil, a majority-owned affiliate of ExxonMobil, has decided to invest approximately $560m to build what it claims to be Canada’s largest renewable diesel facility.

Planned to be built at Imperial’s Strathcona refinery near Edmonton, Alberta, the new project will have the capacity to produce 20,000 barrels of renewable diesel per day, primarily from locally sourced feedstocks.

The renewable diesel facility, which is planned to start production in 2025, will feature low-carbon hydrogen, and carbon capture and storage technology.

It is expected to help reduce greenhouse gas emissions by nearly three million metric tonnes per year compared to conventional fuels in the Canadian transportation sector.

The facility forms part of Exxon’s wider plans to invest approximately $17bn in lower-emission initiatives through to 2027.

ExxonMobil Product Solutions president Karen McKee said: “We continue to focus investments on markets like Canada, where well-designed policies support technologies that reduce life-cycle emissions.”

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Imperial has also signed a low-carbon hydrogen supply deal with Air Products. Imperial is expected to sign additional deals for biofeedstock supplies with other third parties.

In a press statement, ExxonMobil said: “The low-carbon hydrogen and biofeedstock will be combined with a proprietary catalyst to produce premium, lower-emission diesel fuel and will help reduce greenhouse gas emissions from the transportation sector, relative to conventional fuels.”

The renewable diesel project is expected to create an estimated 600 jobs during the construction phase.

Imperial chairman, president and CEO Brad Corson said: “Imperial supports Canada’s vision for a lower-emission future, and we are making strategic investments to reduce greenhouse gas emissions from our own operations and to help customers in vital sectors of the economy reduce their emissions.”