Ocean Supercluster makes big bet on biofuels with $65M investment

A pan-Canadian team with funding from Canada’s Ocean Supercluster is coming together in a $65-million project to develop Canada’s first renewable diesel fuel from forestry and agricultural waste products.

The Clean Ocean Advanced Biofuels Project is the largest project to date for the Ocean Supercluster, an industry-led initiative with federal support that aims to drive cross-sectoral collaboration and accelerate innovation. The supercluster will provide nearly $5.7 million, with the balance coming from the project’s industry and government partners to fund the introduction of a low carbon biofuel across the marine ecosystem.

A major challenge for the ocean industry is the need for marine fuels that are environmentally sustainable, produce low levels of greenhouse gas (GHG) emissions and sulphur, are compliant with current and future fuel regulations, and are available to end-users at a competitive cost, the Ocean Supercluster said in a news release. There are more than 50,000 merchant vessels in operation globally.

In the project, Ontario-based Valent Low Carbon Technologies will work with partners FORGE Hydrocarbons Corp., Mara Renewables Corp., Clearwater, Katal Energy Inc., Horizon Maritime and Sustainable Development Technology Canada to produce fuel and solvents to be used in industry. The project also will include work on a hydrocarbon material with improved nutritional value for human health products.

“We're trying to integrate the renewable fuel value chain,” said Karlis Vasarais, Valent’s co-founder and executive vice-president, in an interview.

Because renewable diesel is generally produced from soy, canola, or fats, oils, and greases, one of the biggest issues today is the limited feedstock, he said. With Mara, Valent is looking at creating a new category of feedstock for renewable diesel via the fermentation of wood, forestry and agriculture residues that can be produced in volumes large enough to meet growing demand.

Woody biomass, which is plentiful in Nova Scotia and New Brunswick, is an organic resource that can be used to feed the algae that produce crude oil that can then be converted into renewable diesel fuel, said Roberto Armenta, chief scientist and director of R&D at the Dartmouth, N.S. company.

Mara has been working on its technology for several years and sees the advanced biofuels project as a way to optimize production and improve economics with increased production, Armenta said.

“We're very excited about it,” he said.

FORGE transforms the feedstock into a “drop-in” renewable diesel that can be blended into traditional marine fuel. Drop-in fuel refers to a biofuel that can be directly substituted for a fossil fuel without needing engine or pipeline modifications.

The company’s technology, which was developed at the University of Alberta, uses a less carbon intensive process than that of other renewable diesel projects, enabling it to achieve a 90 per cent reduction in carbon intensity compared to fossil-based diesel.

For its part, Calgary-based Katal Energy can reduce by about one-half the nitrous oxide and particulate matter in the remaining 80 per cent of regular diesel fuel, said Vasarais.

“As a whole, you're burning a much cleaner fuel across the board,” he said.

The success of the Advanced Biofuels Project will drive Canadian renewable diesel production and supply, reduce imports and foster international market exports, said the Ocean Supercluster. It will also create more than 150 direct jobs across Canada.

The cumulative emission reductions from Valent’s suite of technologies will also positively affect local marine life and air quality, supporting Canada’s transition to a more sustainable future.

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