A new energy company in southeast Saskatchewan is looking at setting up a major canola processing plant to produce renewable diesel.

Covenant Energy president Josh Gustafson says his goal is to bring value-added opportunities to farming.

He wants to explore partnership with the oil and gas industry through fuel blending to bring diversity to the Estevan region.

He says provided the project receives all necessary approvals, production would start in the second half of 2023.

But he says key driver for demand would be Ottawa’s proposed clean fuel regulations.

The proposed plant would produce 65 hundred barrels a day or over 300 million litres of renewable diesel and aviation fuel.

Greenhouse gas emission reductions range from 80 to 85 percent when compared to fossil fuel diesel.

He says the facility would create demand for 35 million bushels of canola, worth 500 million dollars, to produce 350 thousand tons of canola oil feedstock.

There are estimates of up to 60 permanent full time jobs to be created.

The renewable fuel processing plant would be built in southern Saskatchewan.
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