Expander Energy, along with Rocky Mountain Clean Fuels Inc., is building a plant that will convert waste wood into bio-synthetic diesel using patented gasification technology. Expected to become operational later this year, the facility will produce 8 million litres of renewable diesel annually.
At the inaugural Future Fuels Forum in Prince George’s, Expander Energy CEO Gord Crawford announced that the company is conducting a feasibility study, funded by the federal government’s Clean Fuels Fund, to identify future plant locations. Northern British Columbia, northern Ontario, and Quebec are being considered for new facilities.
“Northern BC has everything we need for a carbon-neutral project—fibre supply, renewable energy, and industrial expertise,” said Crawford. He highlighted that these facilities could create jobs in forestry, transportation, and plant operations while helping Canada produce globally competitive renewable fuels.
Expander Energy’s process involves converting biomass into paraffin, which is further refined into diesel or aviation fuel. Crawford referenced a study by the Canadian Sustainable Aviation Fuel Association, estimating that Canada could produce 8 billion litres of sustainable aviation fuel (SAF) annually using its biomass resources, though production is currently minimal.
While demand for renewable fuels is high, the industry faces hurdles. Matt Millard, general manager of Tidewater Midstream’s Prince George Refinery, discussed the challenges of competing with U.S. biofuel producers. U.S. subsidies and an oversupply of biofuel projects have driven prices down, making it difficult for Canadian producers to compete.
Tidewater’s $430 million biofuel refinery, opened in November 2023, has produced 160 million litres of renewable diesel to date, reducing carbon emissions by over 400,000 tonnes. However, the company reported a $367 million loss in the third quarter of 2024, and Millard warned that the renewables plant might close by March 2025 without financial relief.
“U.S. producers benefit from substantial subsidies and export their fuel to Canada, making it hard for local producers to compete,” said Millard.
Despite these challenges, Tidewater’s renewable diesel, made from canola oil, tallow, and used cooking oil, is helping industries like forestry, mining, and LNG meet BC’s low-carbon fuel regulations.
British Columbia’s mandate for a 40% reduction in carbon emissions by 2030 is ambitious, and industry leaders emphasize the importance of local renewable fuel projects to achieve this target.
“Renewable diesel is a drop-in replacement for fossil diesel. It works seamlessly in existing equipment and infrastructure,” Millard said.
The renewable fuel sector presents an opportunity for Canada to reduce emissions, create jobs, and generate export revenue. However, achieving this potential will require addressing economic disparities and supporting domestic production to compete on the global stage.
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