Covenant Energy is advancing the development of the first stand-alone renewable diesel refinery in the country
Estevan, SK (Dec. 18, 2020) – With the Government of Canada’s publication of Clean Fuel Standard (CFS) draft regulations, Covenant Energy, an Estevan, Saskatchewan based renewable fuel company, sees an opportunity to invest in the development of a renewable diesel refinery. The planned refinery will use Canadian produced and processed canola as the primary feedstock to create a low carbon, renewable diesel.
The CFS creates a Canadian requirement to reduce carbon content in domestically used liquid fuels, with the goal to achieve 23 million tonnes of annual reductions in greenhouse gas emissions by 2030. It provides a key incentive for the production and use of low carbon biofuels as well as the feedstocks necessary to supply the industry.
Covenant Energy sees the CFS as an opportunity to drive economic growth in rural Saskatchewan and diversify the domestic market for canola oil.
“The release of a Clean Fuel Standard is an exciting step towards the growth of the biofuel industry in Canada. Biofuels such as renewable diesel have wide-reaching implications, particularly for farmers who will be able to supply a competitive market. Covenant Energy looks forward to engaging with all stakeholders to bring Canada’s first renewable diesel refinery to Saskatchewan and boost the economy through the production of low carbon fuels.”Josh Gustafson, President and CEO, Covenant Energy Ltd.
About Covenant Energy: Covenant Energy was founded in 2019 with the mission to become a Canadian leader in the transformative green fuel industry through the production of renewable diesel and renewable jet fuel. To do so, Covenant is developing the first stand-alone Hydrogenation-Derived Renewable Diesel (HDRD) refinery in Canada, which will transform prairie-grown canola oil into a premium diesel product.