Parkland Corporation, a Canadian fuel producer and distributor, has cancelled plans to build a renewable diesel complex in British Columbia.
Citing market conditions, the company said in a news release that it will not proceed with the standalone facility at the Burnaby Refinery.
Several factors have impacted the competitiveness of the renewable diesel complex, according to the release, including rising project costs, a lack of market certainty around emerging renewable fuels and the US Inflation Reduction Act of 2022, which advantages US producers.
On an earnings call this morning, Parkland CEO Bob Espey said the company is waiting to see how the renewable diesel market evolves.
“The biggest change in our business in the renewables space has been the IRA,” he said. “And what we’ve seen is there will be a lot of investment in new capacity, and we’re just not sure how the market is going to shake out here in the medium term.”
Parkland remains committed to its low carbon journey and will continue to extend its low carbon fuel innovation and leadership by expanding co-processing at the Burnaby Refinery to 5,500 barrels per day, the release says. Co-processing forms part of Parkland’s commercial decarbonization strategy to provide its customers with a portfolio of low carbon products and services to help them meet their low carbon goals.
