Parkland Corp. says it will not go ahead with its plan to build a stand-alone renewable diesel complex at its refinery in Burnaby, B.C.

The company says it made the decision as it faced rising project costs, a lack of market certainty around emerging renewable fuels and legislation in the U.S. that advantages U.S. producers.

Parkland had announced a plan in May 2022 to build a stand-alone renewable diesel complex within its Burnaby refinery, capable of producing 6,500 barrels per day.

The company says it is still going ahead with its plan to expand co-processing of renewable fuel alongside traditional petroleum-based materials at the refinery to 5,500 barrels per day.

The announcement came as Parkland raised its quarterly dividend to 34 cents per share from 32.5 cents and reported a fourth-quarter profit of $69 million or 39 cents per diluted share on $8.72 billion in sales and operating revenue.

The result compared with a profit of $22 million or 15 cents per diluted share on $6.29 billion in sales and operating revenue in the fourth quarter of 2021.