Imperial Oil Ltd. (AMEXIMO) is to build a cogeneration plant as part of a $2bn expansion of its flagship Cold Lake oil sands project.

Canada’s largest oil company will include the 170 MW cogeneration plant to produce steam and electricity and a facility to process the bitumen produced at the site.

Imperial, Canada’s No. 2 oil producer and refiner, received regulatory approval for the expansion in 2004.

Advances in technology led to amendments, including the addition of the cogeneration facility, sulphur dioxide recovery to reduce emissions, and fewer drilling pads.

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