Calgary-based Imperial has begun production at a new oil sands project

Imperial Oil Ltd. says it has started production at its new Grand Rapids oil sands project at its Cold Lake operations.

The Calgary-based company, which is majority owned by U.S. giant ExxonMobil, says the project will use a mixture of steam and chemical solvents to recover bitumen that is too deep underground to extract through mining.

While all units at Imperial's Cold Lake oil sands operation use steam instead of mining, the Grand Rapids expansion is also the first to use solvents.

The use of solvents reduces the amount of steam heat required to produce sticky, resinous bitumen so it can be extracted. Imperial estimates that the process produces 40 percent fewer greenhouse gas emissions than methods used at Cold Lake.

Imperial said it will ramp up production at Grand Rapids in the coming months to reach its full rate of 15,000 barrels per day.

Canada's oil sands industry is under pressure to lower its emissions profile. While oil sands companies have been able to reduce the greenhouse gas intensity per barrel of production through technology and efficiency gains, the industry's overall emissions footprint is growing as production increases.

This Canadian Press report was first published on May 22, 2024.