Irving Oil ponders biodiesel refinery in N.B.

Irving Oil Ltd. is considering building a biodiesel refinery in east Saint John.

The company has applied for a provincial environmental impact assessment to construct and operate a production plant at the Grandview Industrial Park, within the existing Irving Oil Refinery.

Biodiesel, a vegetable oil or animal fat-based diesel fuel, burns cleaner than gasoline and traditional diesel.

'This project is in the very early stages of development and a significant amount of work needs to be completed before we could make a decision on moving forward.' —Sam Robinson, Irving Oil

If approved, the refinery would make fuel from such renewable products as refurbished cooking grease, animal fats, vegetable oils and agricultural seed oils, said spokeswoman Sam Robinson.

"The proposed plant would be designed to produce 2,200 barrels per day of biodiesel," she said.

By comparison, the conventional Irving Oil Refinery currently produces about 300,000 barrels of oil and gas per day.

There is a potential for odour, but biodiesel is made through a "closed-loop system" that will minimize that potential, Robinson said.

Environmental group in favour

David Coon of the Conservation Council of New Brunswick said he supports the proposed plant, as long as it doesn't get too big. 

"Scale is everything and if you maintain it at a relatively small scale, then it can be done on a sustainable basis," he said. "But if the scale of this got very large, then it becomes more of a concern.

"It's really kind of a short-term, stop-gap measure to try to reduce emissions from diesel fuel while more longer-term prospects are being worked upon."

In Canada, new federal regulations require that diesel oil contain two per cent renewable energy. And in the U.S., the regulations require five per cent. So several big businesses are now taking a serious interest in biodiesel.

The federal government is also offering incentives to encourage Canadian companies to get into the biodiesel manufacturing business.

To qualify, interested companies had to register for an environment impact assessment with their provincial governments by March 31, which is the day that Irving Oil filed its application.

"Again, to reiterate, this project is in the very early stages of development and a significant amount of work needs to be completed before we could make a decision on moving forward," said Robinson.

Under the new federal rules, companies can buy credits if they choose not to add the biodiesel to their diesel, she said.

Irving Oil could also buy biodiesel from someone else, so the company is exploring all of its options.

If the project goes ahead, it would create about 300 jobs during construction and up to 30 full-time jobs, Robinson said.

Last July, Irving Oil and BP shelved plans to build a second conventional oil refinery, known as Eider Rock, just outside Saint John.

A study conducted by Irving Oil and the international oil giant concluded that the project was not viable during the economic downturn and the softening demand for petroleum products, officials said.