Energy firm Xfuels Inc. announced plans Tuesday to add biodiesel production assets to its existing facility in Bieseker, AB. A system capable of continuously making 50 barrels/hr of the alternative fuel will be installed at the site, according to a company release. The unit will be able to ramp up to 100 barrels/hr.

“With access to our own power production, as well as an abundance of oilseed and methanol in the area, it makes sense to produce this product at our site,” said Michael McLaren of Xfuels in a statement.

The company also intends to integrate priority grinding and oil extraction at the location with a Szego mill. Waste generated through the processes will be burned in a retrofitted incinerator, creating gas for power generation.

“To further enhance this project, the company will also purchase a blending unit to produce our own B-20 biodiesel product to run in the Cycle Energy Services rigs and equipment,” McLaren said. “Fuel cost is one of the largest expenses when utilizing our equipment for abandonment or workovers and recapturing some of those costs while increasing 20% renewable utilization is a win-win for the company.”

Xfuels will start the project by retrofitting an incinerator at the Bieseker plant.