The micro-refinery that is to be built in the RM of Oakdale has received the green light on construction, figuratively and quite literally. After approximately eight months of evaluation and review, the Independent Energy Corp. has obtained all the necessary environmental and construction permits needed to move forward with the project.

Glen Weisbrod, president of Independent Energy Corp., the company who is behind the micro-refinery, stated they are very pleased to announce that the project is officially moving forward and the refinery will be operational in the near future.

“We received the environmental permits towards the end of July and now we are able to move forward with the project and construct the refinery. Getting through the environmental assessment and permitting, that is a large portion of the front end of the project, to have that now complete, is definitely a major success and we can now focus on putting the rest of the pieces together.” said Weisbrod.

In addition to receiving all of the necessary environmental approval from the Environmental Assessment Branch, Independent Energy has also obtained the Hazardous Substances and Waste Dangerous Goods and Industrial Waste Works construction approvals associated with the facility.

The company has wasted no time in getting to work on the next steps of the project. To date, all necessary utilities have been installed on the property, which is located east of Highway 21 off of Pipeline Road.

The construction process is also well underway as the construction of major earthworks has been complete and the construction of tank farms, along with piling work is currently underway.

Crews work to bring the micro-refinery to life, with long-lead items set to arrive within the coming weeks. (Photo: Brittany Warner)

Long lead items, those items that typically take upwards of 10 months to build, are built and are set to be arriving at the facility within the next couple of weeks, which will allow the company to keep their momentum as they look to stay on course and adhere to their projected completion date.

The project, which was initially started in May of last year, is set to be built and operational by the end of the year.

Of the 70 acre parcel, the footprint of the refinery will be substantially less; only occupying approximately 11 acres. The land that is not being directly used for the refinery, Weisbrod said will be seeded, so the remaining acres will not simply go to waste.

This refinery will be the first of its kind in Saskatchewan and embodies the local spirit that is felt throughout so many west central communities.

The 16,000 barrels per day (bpd) of light crude that they will be bringing in will be sourced from right here in the region and the refined products that will be produced will also, for the most part, stay very local for the products that are usable in the local markets.

Of the anticipated 5,500 bpd of ultra low sulphur diesel that will be produced through the distillation process, Weisbrod stated that a large portion of that will be distributed to large farming operations and other local markets including earth moving contractors.

“If we can stay and support local where we can, that is definitely our goal,” shared Weisbrod, “those local end users will also see a benefit as there are some definite cost advantages on their end.”

Weisbrod added that the ultra low sulphur diesel that is not dispersed through local markets, will still stay within western Canada.

Additionally, produced butane and naphtha, which are lighter end products and typically used to dilute heavier oils, will almost all be distributed locally.The only product that will not have any local distribution will be the residue, which is usable in marine markets and will be shipped by rail to port markets.

In the way of job creation, Independent Energy will be looking to bring on upwards of 40 full-time staff, of which, they will look to the local market to fill. The positions range from office staff to plant operators, managers, engineers and labourers among others.

Weisbrod stated they will be looking to bring on a few key team members in the near future and get those positions established and then will look to build upon that, bringing in more positions as the project nears completion.

Although Weisbrod and Independent Energy are the driving force behind the micro-refinery, it has been a collaboration between numerous governing bodies including:

  • Ministry of Energy and Resources
  • Ministry of Environment
  • Ministry of Trade and Export Development
  • SaskPower, SaskEnergy and TransGas
  • RM of Oakdale

Weisbrod acknowledged all of the parties, stating they have received a large amount of support for the refinery.

Of the 70 acre parcel, the refinery itself will occupy just 11 of those acres with plans for the remaining land to be seeded. (Photo: Brittany Warner)

“It’s been a very collaborative effort as we’ve gone forward. Trade and Export Development has really been the cornerstone of making those collaborations come to fruition, it’s been very good working with all of them throughout the process”.

Energy and Resources Minister, Bronwyn Eyre, also commented, sharing her enthusiasm for the project.

“Our government welcomes this investment from Independent Energy Corp. This is the first refinery of this kind in Saskatchewan and the first refinery that processes light sweet crude built in Canada since 1984. The new project is a value-added opportunity for the oil and gas sector, as it will allow Saskatchewan to refine our crude oil in the province rather than exporting it to the United States for refining. This project is a strong signal that Saskatchewan remains a great place to invest, that our energy sector will be a significant part of our future economic success, and our province continues to show signs of economic recovery.

Saskatchewan’s Plan for Growth includes ambitious goals, actions and commitments to grow our economy. This includes growing our natural resource sector, growing jobs, increasing oil production and growing private capital investment in the province. This project is a step to achieving these goals, among others, and our government will continue working to attract additional investment in our natural resource sector to the province.”

Weisbrod and Independent Energy have also had numerous conversations with the neighbouring landowners, all of which, Weisbrod said, have given their full support to the project.

With the end of the year fast approaching, Weisbrod said he and his team will be working diligently to meet their target to be operational by the end of 2020.

For more information on Independent Energy or the micro-refinery, please email info@independentenergy.