Environmental permit granted for Canada’s first biomass gas-to-liquids plant

The Slave Lake biomass/gas-to-liquids proposed project has received an environmental permit from Alberta Environment and Parks (AEP) to establish Canada’s first biomass gas-to-liquids plant next to Vanderwell’s sawmill site in Slave Lake, Alta.’s Mitsue Industrial Park.

Expander Energy Inc. and Vanderwell Contractors (1971) Ltd. are behind the project.

The plant will produce more than 6.5 million litres per year of low-carbon intensity, clean-burning synthetic diesel fuel (trade named SynDiesel) made from sawmill and forestry residuals. The plant will concurrently produce marketable volumes of hydrogen from the process. The AEP permit is the last significant permit required to enable the construction and operation of the project.

The plant will use Expander’s patented process and wood waste from Vanderwell’s operations as feedstock to create a low-carbon diesel fuel that will meet Canada’s new Clean Fuel Standard to 2030 and beyond. This is a significant step in meeting both the provincial and federal government mandates that require diesel fuel to meet progressively more stringent carbon intensity limits.

To date, nearly all low carbon intensity diesel fuel has been supplied from Asia and the U.S.A. due to lack of domestic supply. The Slave Lake Biomass to Diesel facility will be one of the first facilities in Canada to supply this need domestically.

The project is well under way with construction expected to begin in late 2021. The first phase is a commercial demonstration plant producing 6.5 million litres per year of SynDiesel followed by a commercial expansion to more than 20 million litres per year. The proposed $30-million plant will create local construction jobs as well as permanent operating and maintenance jobs.

“Vanderwell is very excited about being involved in this innovative and very important project and to have it here in our backyard in Slave Lake,” president Ken Vanderwell said. “There is no doubt renewable low-carbon intensity fuels are going to be a large component in the future of the energy industry, and building the first such plant in Canada here in Slave Lake will be a major accomplishment.”

Expander CEO, Steve Price added, “We couldn’t be happier to have Vanderwell as a partner. As a cornerstone family-owned business in Slave Lake, they bring credibility and capability that are essential to making this project a success.”

After a successful commercial demonstration, Expander and Vanderwell are planning to utilize additional wood waste in the area and to examine alternative feedstocks. These could include other forestry residuals, landfill material and municipal wastewater solids, and others. Expander anticipates that the Slave Lake area has a biomass availability that could support a facility producing 200 million litres of SynDiesel per year.

In addition, hydrogen is becoming increasingly important as a promising fuel to reduce the use of fossil fuels in select sectors, and is key to moving Alberta and Canada toward the stated goal of net-zero carbon emissions by 2050. Hydrogen will serve as an early building block in creating a cleaner provincial and federal energy economy.

“This is about converting waste material into a high-quality renewable low-carbon intensity fuel and a valuable hydrogen product that can help both the environment and create a new industry in Alberta and Canada,” Vanderwell added.