Indigenous Group Plans $451 Million Biofuel Refinery in Canada

byRobert Tuttle (Bloomberg) Refinery would supply airlines operating at Calgary airport; Siksika Nation, Reconciliation Energy seek 60% of project -- An Alberta-based indigenous group and local first nation plan to build a C$600 million ($451 million) sustainable aviation fuel refinery to supply Calgary International Airport in an effort by indigenous communities to capitalize on Canada’s push to reduce emissions.

Reconciliation Energy Transition Inc. and the Siksika Nation’s planned refinery would produce 6,500 barrels a day of fuel from canola grown on a million acres of land, much of it indigenous-owned, Steve Mason, senior managing director of Reconciliation, said by phone.

The partnership would own at least 60% of the refinery and is in discussions with outside, mostly agricultural companies to sell most of the remaining stake. The project would be financed with a combination of debt and equity. A final investment decision is expected within six months.

Reconciliation, an affiliate of the same group that seeks to buy the government-owned Trans Mountain pipeline on behalf of indigenous communities, and Siksika are seeking supply contracts for low-carbon fuel with airlines that use Calgary’s airport, including WestJet Airlines Ltd. and Air Canada, Mason said. The fuel would initially be blended with regular jet fuel for use by aircraft flying out of the airport, reducing their exposure to emissions and to rising carbon taxes. READ MORE

Excerpt from Reconciliation Energy Transition/CISION: Reconciliation Energy Transition Inc. ("RETI"), with ENGlobal Corporation ("ENG") and Rangeland Engineering Canada Corp ("Rangeland") are pleased to announce their partnership, Green Energy Transformation Inc. ("GETI") with the objective to develop sustainable aviation fuel ("SAF") and renewable diesel ("RD") biofuel projects in Canada. The GETI Partnership team draws from significant strengths within each group, to create Indigenous partnerships in the energy transition sector and to bring world proven expertise and licensed proprietary technology to the delivery of biofuel production facilities that will serve Canada's emerging renewable diesel and SAF production needs. The Partnership builds upon ENGlobal's participation in a renewable diesel plant project in Kansas, now producing 6,500 barrel per day ("bpd") and a 6,500 bpd SAF/RD project in North Dakota for which the Partnership has completed front-end engineering.

The GETI Partnership is presently conducting feasibility on a proposed 6,500 bpd SAF production facility on lands located near Calgary, as the anchor facility for a planned Calgary Region Green Energy Industrial Park. The Green Energy Industrial Park will be developed in proximity to RETI's East Calgary Region Carbon Sequestration Hub, providing the foundation for biofuels and hydrogen development to serve the Calgary Region.

"Aviation emissions account for over 10% of global transportation emissions and are harder to abate than other modes of transportation. Sustainable aviation fuel is one of the most promising answers to this challenge, with Alberta and Canada already emerging as leaders. We are excited to be part of accelerating this transformation."

RETI's focus is to develop new energy transition projects founded on material Indigenous equity ownership at the operating level. RETI's strong engagement platform and governance structure is deeply aligned with its affiliate company Project Reconciliation (PRI). PRI's mandate is to accelerate Canada's Indigenous generational wealth base where Indigenous people have meaningful oversight and economic participation in Canada's evolving energy transition and decarbonization economy. RETI's mandate emphasizes Free, Prior and Informed Consent ("FPIC"), with ESG performance as the foundation of its development strategy.

RETI is the developer of the East Calgary Region Carbon Sequestration Hub, a major CCS hub planned to serve emitters in the greater Calgary Region.

ENG is a multidisciplinary provider of high value engineered modular plant solutions, serving the (new) energy industry. ENG offers a full-service engineering, procurement, fabrication, construction management and automation suite of services, combined with a proven track record of excellence in safety. Their integrated capabilities deliver comprehensive and innovative modular plants & services across the energy value chain, executing projects ranging in size and complexity.

Rangeland Engineering is a full-service engineering, procurement and construction management (EPCM) company based in Western Canada. Through our client partnerships, industry experience, and use of technology, we're developing new and innovative ways to solve challenges, meet regulations and increase productivity.

We support the entire project lifecycle—from feasibility studies to detailed engineering design to commissioning and start-up. Our complete engineering services include process, pipeline, mechanical, piping, civil, structural, electrical, and instrumentation & control disciplines READ MORE