MOSCOW (MRC) -- Parkland Corp. says it will not go ahead with its plan to build a stand-alone renewable diesel complex at its refinery in Burnaby, B.C., said Winnipegfreepress.
The company says it made the decision as it faced rising project costs, a lack of market certainty around emerging renewable fuels and legislation in the U.S. that advantages U.S. producers.
Parkland had announced a plan in May 2022 to build a stand-alone renewable diesel complex within its Burnaby refinery, capable of producing 6,500 barrels per day.
The company says it is still going ahead with its plan to expand co-processing of renewable fuel alongside traditional petroleum-based materials at the refinery to 5,500 barrels per day.
The announcement came as Parkland raised its quarterly dividend to 34 cents per share from 32.5 cents and reported a fourth-quarter profit of USD69 million or 39 cents per diluted share on USD8.72 billion in sales and operating revenue.
The result compared with a profit of USD22 million or 15 cents per diluted share on USD6.29 billion in sales and operating revenue in the fourth quarter of 2021. This report by The Canadian Press was first published March 3, 2023.
We remind, in 2021, Parkland Fuel plans to increase renewable fuel production by more than 6,500 b/d at its refinery in Burnaby, British Columbia, to offer more low carbon products. Roughly C$600mn ($460mn) will be needed to expand existing facilities and build a stand-along renewable diesel complex on the site of its 55,000 b/d refinery, located in greater Vancouver on the Pacific coast of Canada. The refinery co-processed about 1,500 b/d of renewable fuels across 2021.