Expander Energy Inc. and Rocky Mountain Clean Fuels Inc. announced plans in 2023 to produce low-carbon bio-synthetic diesel fuel. The fuel will be made by combining waste wood and synthetic gas using a patented gasification process. The facility, set to be operational later this year, will be located east of Calgary and is expected to produce eight million liters of renewable bio-diesel annually.
Gord Crawford, CEO of Expander Energy, shared details of the project at the Future Fuels Forum at the House of Ancestors Uda Dune Baiyoh Conference Centre in Prince George. He revealed that the company is conducting a feasibility study, funded by the federal government’s Clean Fuels Fund, to explore potential sites for future gasification plants that convert forest products into fuel. Northern BC is being considered as a possible location for one of these plants.
“We’re getting close to finalizing the feasibility study for locations, which include northern BC, northern Ontario, and Quebec,” Crawford said. “After finalizing the locations, we will move forward with the engineering and financial planning necessary for construction.”
Although Crawford could not disclose the exact location, he emphasized that northern BC has the necessary infrastructure for a carbon-neutral project, including fiber supply, renewable energy, and a history of industrial development.
“There’s a strong workforce here, and the provincial government supports these projects. We’ve already received approval from the BC low-carbon fuels branch for the biofuel we plan to produce at our Calgary-area facility,” Crawford said.
Expander Energy is focused on using low-carbon processes, such as biomass, electrolysis, and captured carbon, to produce alternatives to traditional diesel fuel. The company combines Fischer-Tropsch principles with its patented gasification technology to produce paraffin, which can be further refined into diesel or aviation fuel.
“This aligns with the BC government’s focus on producing globally traded, high-quality fuels from biomass, forest residuals, and renewable electricity,” Crawford explained. “This is an opportunity for Canada to create export revenue, generate jobs, and advance the economy. These plants will create good-paying jobs in forestry, trucking, and plant operations in rural and remote areas like Prince George and Fort St. John.”
Crawford cited a study by the Canadian Sustainable Aviation Fuel Association, which estimates Canada could produce up to eight billion liters of sustainable aviation fuel (SAF) annually from available biomass. However, current production is almost nonexistent.
The market for SAF is growing, as highlighted by Frank Femia of Air Canada, who spoke at the forum. He noted that only 0.3% of the airline’s fuel is SAF, mainly due to high production costs. Air Canada is looking for ways to encourage more industry participation in producing the necessary renewable fuels.
While there’s demand for biofuels, companies like Tidewater Midstream are facing challenges. Matt Millard, general manager of Tidewater’s Prince George Refinery, discussed the struggles the company has faced since opening its $430 million biofuel diesel plant in November 2023. Subsidies for U.S. biofuel producers and a surge in U.S. biofuel projects have driven down commodity prices, making it difficult for Tidewater to compete.
Millard stated that, despite demand for biofuel in Prince George, the high production costs are making it too expensive to produce. Tidewater Renewables reported a $367 million loss in the third quarter of 2024, and there is a possibility that the plant may close as early as March, potentially delaying plans for renewable jet fuel production.
Millard emphasized the need for a level playing field, as U.S. producers benefit from subsidies that make their products cheaper. He also pointed out that the low-carbon fuel production in BC is not enough to meet the province’s targets, and imported fuels often come with additional subsidies from the U.S.
Despite these challenges, Tidewater’s Prince George refinery has produced 160 million liters of renewable diesel in 15 months, all of which has been distributed within BC. The refinery processes canola oil, beef fat, and used cooking oil to create renewable energy.
The carbon reduction associated with this production exceeds 400,000 tonnes, helping to decarbonize industries like logging, mining, and natural gas. Millard noted that the provincial government’s mandate for a 40% reduction in carbon emissions by 2030 is ambitious but achievable with more projects like this one.
“The beauty of renewable diesel is that it’s a drop-in replacement,” Millard explained. “It can be used in any diesel engine or pump without changing the equipment. It’s a direct substitute for fossil diesel.”
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