Canada’s transportation fuels sector has opportunities to build on existing infrastructure, strengthen domestic production and advance lower-carbon fuel options. At Tidewater Midstream’s operations in Prince George, B.C., conventional refining and renewable diesel production demonstrate how existing capabilities can support the evolution of Canada’s fuels supply.

For this Industry Perspectives issue, we sat down with Erik Sullivan, General Manager, Renewables at Tidewater Midstream, and asked him to share his insight on the role of renewable diesel in Canada’s energy mix, the potential to expand production through existing infrastructure, and the conditions needed to attract investment in domestic renewable fuels. He also discussed emerging opportunities, including sustainable aviation fuel (SAF), and the role Canada can play in meeting the transportation sector’s evolving energy needs.

Q: Erik, thank you for agreeing to speak to us. To start, can you please tell us a little about your role at Tidewater’s renewable diesel facility in Prince George. What does your job involve day to day?

I’m the General Manager, Renewables and oversee the safe, stable and reliable operation of the Hydrogenation-Derived Renewable Diesel (HDRD) plant in Prince George. Day to day, I work closely with multiple departments to assess plant performance, address issues and set priorities. Some days are focused on troubleshooting equipment or processes, while others involve planning maintenance and turnaround activities, reviewing budgets and ensuring we meet our long-term goals. My background is in engineering and maintenance, so I enjoy the technical side, but I’m also responsible for making sure my team has the support and direction they need to succeed.

Q: For someone who has never seen a renewable diesel facility, what happens at the Prince George plant, what does it produce, and why is the facility important to the region?

The HDRD plant in Prince George has four main units: pretreatment, hydrogen, renewable diesel and utilities. We receive domestically sourced canola, tallow and used cooking oil by rail and store them in feedstock tanks.

The feedstock first goes through pretreatment, where impurities are removed. It then moves to the renewable diesel unit, where hydrogen is added to convert it into renewable diesel.

The fuel is then processed further to improve its cold-weather performance, which is especially important in Northern B.C.

Finally, the finished renewable diesel is sent to storage, certified by our in-house lab, and loaded onto trucks or railcars to supply British Columbia with lower-carbon diesel fuel.

Q: Most Canadians probably don’t think much about how the fuels they rely on are produced. What role do companies like Tidewater play in keeping Canadians supplied with the energy they need every day?

As we’ve seen in the news lately, tight fuel supplies are affecting markets around the world. Tidewater and its Prince George operations play an important role in maintaining domestic energy security by supplying the region with reliable transportation fuels while also supporting the local community with well-paid, skilled, permanent jobs.

Q: Why is it important for Canada to continue growing renewable fuel production here at home?

It is essential to continue growing renewable fuel production in Canada to reduce our dependence on imported refined fuel products while continuing to work toward our climate goals.

Q: Where do you see the greatest opportunity for Canada to lead in the future of fuels?

Canada has an opportunity to keep showing Canadians and the world that we are a reliable source of sustainably produced and competitively priced energy products.

With thoughtful policy, the industry can continue to grow and diversify to include a wider range of products, especially biofuels, to the benefit of more parts of our economy, including the agricultural sector.

One of the biggest opportunities is to prioritize domestic biofuel production using Canadian renewable feedstocks, such as canola from local farmers. That would strengthen the agricultural value chain, support Canadian producers and grow the economy here at home.

Q: What is the biggest challenge to scaling renewable fuel production in Canada today?  And what is the one thing Canada could do that would make the biggest difference in attracting more investment in renewable fuel production?

The biggest challenge to scaling renewable fuel production in Canada today is regulatory uncertainty, because the economics of renewable fuel production depend heavily on the value of regulatory credits. Another challenge is that U.S. producers can benefit from production incentives at home and then export their fuel to Canada, where it can also generate Canadian renewable fuel credits. Greater regulatory certainty and more competitive investment conditions for Canadian production would help attract more investment to Canada.

Q: Tidewater is expanding co-processing at the Prince George Refinery, allowing renewable feedstocks to be processed using existing refinery equipment. What does that project tell us about the potential to grow renewable fuel production using infrastructure Canada already has?

Co-processing has expanded the Prince George Refinery’s ability to reduce the carbon intensity of its products while maintaining strong production. These projects show that relatively small targeted investments can allow refiners to use existing assets to produce lower-carbon fuels and reduce compliance costs, while using sustainable Canadian-sourced feedstocks such as canola oil.

Q: Prince George produces both conventional and renewable fuels. What does operating those businesses side by side teach us about how Canada’s fuel system can evolve?

Operating both facilities on the same site allows the renewable fuel facility to use existing infrastructure, reducing upfront capital and operating costs. When either facility faces operational challenges, they can also share resources to help minimize impacts on production.
We share personnel across several departments, building on our existing refinery experience while giving our team valuable experience in renewable fuels. And because we can blend renewable and conventional diesel at our loading rack, we can offer customers a wider range of fuel products.

Q: As an engineer and refinery leader, what excites you most about the future of the transportation fuels sector in Canada?

Canada is well positioned to lead in renewable fuels, with abundant sustainable feedstock options and access to low-carbon energy. I’m particularly excited about the progress being made on sustainable aviation fuel (SAF), because aviation is one of the harder sectors to decarbonize. SAF technology is advancing rapidly, and I look forward to seeing how Canada can scale production and attract investment in this emerging industry.

Looking ahead

From renewable diesel production in Prince George to emerging opportunities in sustainable aviation fuel, Canada has the potential to build on its existing strengths to support a more diverse, lower-carbon transportation fuels sector. Realizing that potential will depend on continued investment, regulatory certainty and the ability to make effective use of the infrastructure, expertise and feedstocks already available in Canada.

As Erik highlighted, the future of transportation fuels is not just about developing new technologies. It is also about building on what already exists to expand production, strengthen domestic energy security and create new opportunities for Canadian industry.