Expander Energy (Expander) has announced that a letter of intent has been signed with East Fraser Fiber to secure the required biomass feedstock and land for the Mackenzie Biofuel Project, a proposed Biomass Electrolysis to Liquids (BETL) Bio-Synfuel facility in Mackenzie, British Columbia (BC).

BETL is an innovative, patented and patent pending process for making low carbon bio-synthetic fuels developed by Canadian Nuclear Laboratories (CNL) and Expander which leverages Expander’s technology for biomass gasification, bio-synthetic fuel production, and electrolysis technology. The resulting fuel will be comprised entirely of carbon sourced from biogenic (atmospheric) sources and is expected to have very low life cycle carbon intensity.

The proposed facility will utilise the BETL technology to convert 84,000 dry tonnes per year of forestry wood waste into 30 million liters per year of renewable diesel, renewable naphtha and bio-wax with life cycle carbon intensity of the fuel to levels 80% lower than fossil equivalents (as low as 14 gCO2e/MJ using the BC Low Carbon Fuels Branch (BCLCFS) GHGenius LCA model). The biofuel production is intended to displace fossil derived fuels (e.g., diesel, aviation fuel) and could result in a net avoidance of up to 90,000 tonnes of carbon dioxide annually. The 100km area surrounding Mackenzie has significant fiber resources. Expander will assess the potential to scale the Mackenzie Biofuel Project to process a total of 336,000 tonnes of dry biomass per year to produce 120 million litres per year Bio-Synfuel production and net avoidance of 360,000 tonnes of carbon dioxide per year.

Growing global demand for sustainable aviation fuel (SAF) makes the addition of Synthetic Paraffinic Kerosene (FT- SPK) production to the facility commercially appealing. Expander is currently working with key strategic commercial partners from the aviation industry to assess initial market interest in 18 million liters/year of SAF, with potential opportunity to expand SAF to 72 million liters/year production. The Mackenzie Biofuel Project will become the first of kind low carbon clean fuel production in British Columbia and Canada using forestry wood waste biomass (cellulose). This facility could meet much of the short-term SAF target for British Columbia.

Expander is also very pleased to announce that community and Indigenous leaders and organisations have provided their support for the Mackenzie Biofuel Project. The McLeod Lake Indian Band (MLIB) and the District of Mackenzie (Mackenzie) have provided letters of support for further development of the project.

The Mackenzie Biofuel Project is one of the three projects identified in the feasibility study completed earlier this year. Expander aims to continue the development of the project with the goal to secure funding early in 2026, with production by 2029. Natural Resources Canada through the Clean Fuels Fund program supported the completion of a feasibility study that helped to identify several prospect locations across Canada, one of which was this Mackenzie site. The Clean Fuels Fund has also supported the Front-End Engineering and Design (FEED) study that is expected to be complete in early 2026 and will result in a comprehensive facility design, cost, schedule and business plan for the Mackenzie Biofuel Project.

The completed facility will be a global showcase for next generation biomass based E-fuel production.

Steve Kresnyak, executive vice president and chief technology officer, Expander Energy, says: 'We are thrilled to announce significant progress on the Mackenzie Biofuels Project. Over the past 18 months, our development team has worked tirelessly, and we are on track to complete the fully funded $8 million FEED study by Q1 2026. With land and feedstock secured, and strong support from key community and Indigenous leaders, we are now able to accelerate the project. In addition, Expander Energy Inc. is actively engaging with strategic partners to secure project funding. We look forward to sharing more details as these partnerships are finalised, marking another step toward delivering price competitive Biomass based E-fuels for Industry and Aviation.'