Imperial Oil Inks Multi-year Deal With Air Products For Hydrogen; Imperial Up In Pre-market

(RTTNews) - Imperial Oil Limited (IMO, IMO.TO), a Canadian petroleum firm, said on Tuesday that it has inked a long-term low-carbon hydrogen contract with Air Products and Chemicals Inc. (APD), to produce premium low-carbon diesel fuel and cut greenhouse gas emissions.

Financial terms of the deal were not disclosed.

The gas is intended to be supplied to Imperial's proposed renewable diesel complex at its Strathcona refinery near Edmonton, through a pipeline from Air Products' hydrogen plant under construction.

The hydrogen and biofeedstock will be combined with a proprietary catalyst to produce premium low-carbon diesel fuel.

Air Products is increasing overall investment in its Edmonton hydrogen facility to C$1.6 billion to support the Imperial contract.

The company will supply Strathcona plant with around half of its low-carbon hydrogen output from the 165 million standard cubic feet per day hydrogen production site.

Imperial's renewable diesel complex is expected to produce more than 1 billion liters per year of renewable diesel from locally sourced feed stocks.

As announced in 2021, Imperial's project is expected to realize around 3 million tons per year in emissions reduction in the Canadian transportation sector.

Imperial Oil is trading up by 1.74 percent at $49.79 per share in pre-market on the New York Stock Exchange.