Covenant Energy has attracted some attention and headlines of late for their work in using canola oil as part of a plan to produce renewable diesel. Some of that attention has come from the City of Estevan and the Economic Development team. 

The city announced in a press release they would be partnering with Covenant Energy to develop the first stand-alone Hydrogenation-Derived Renewable Diesel (HDRD) production plant in Canada. The hope is to start production in the second half of 2023. 

“Covenant Energy is eager to be a part of attaining Canada’s environmental sustainability and net-zero commitments in a way that will stimulate the Saskatchewan economy," said President and CEO of Covenant Energy Josh Gustafson. "“Personally, being deeply rooted in the Ag industry as a member of a fifth-generation Saskatchewan farming family with over 13,000 acres of production, I see the positive future impact and I am excited about bringing value-added opportunities.”

This new renewable fuel processing plant would be able to produce about 6,500 barrels a day for a total of 300-325 million liters per year of production. They would produce renewable diesel, arctic grade renewable diesel, and sustainable aviation fuel.

“Our Economic Development Board has been working hard to foster an environment that encourages new and unique businesses to open in Estevan," said City Manager Jeff Ward. "Projects like this will play an integral part of our economy's success in the future.”

In their release, the city said the goal was to use primarily Canadian-grown canola oil as feedstock and ship the fuel throughout Canada, including into the northern communities. They also said the proposed location will be right on a railway so they will have plenty of flexibility to access feedstock from across Canada and the United States. This would also give them access to the United States market to sell their product. 

Covenant Energy announced plans for its renewable diesel in response to the Canadian Government's promise to attain net-zero emissions.