Federated Co-op acquires Terra Grain Fuels ethanol plant

After closing the doors to three feed production facilities last week, Federated Co-operatives Limited (FCL) has announced it has acquired Terra Grain Fuels (TGF) ethanol plant near Belle Plaine, Sask. The facility has been operational since 2008, and makes roughly 150 million litres per year.

“We are very pleased that our business is being acquired by FCL, a long-term and trusted customer of TGF and one of the most stable and successful organizations in Western Canada,” says Calvin Eyben, president of TGF.

“This is a big win for TGF, FCL, the province of Saskatchewan and all of our stakeholders. To our valued customers, suppliers and other business partners, it will be business as usual for TGF and we don’t anticipate any interruptions during this transition period.”

The plant is roughly 185,000-square-feet, and FCL plans to invest in making it more efficient by pursuing carbon capture and storage technologies, the company says.

“As an active contributor to Western Canada’s energy sector, we understand that we have a role to play in reducing greenhouse gas emissions and finding ways to lower the carbon intensity of the fuel we manufacture and distribute,” says Cal Fichter, FCL vice-president of energy. “This purchase not only prepares us to meet the incoming national Clean Fuel Standard, it also fits our commitment to being a responsible and sustainable contributor to Western Canada’s economy for decades to come.”

FCL will continue to operate TGF with its 45 existing employees, and the staff will continue to work directly with all existing clients and partners.

According to a news release, the Belle Plain plant contributes more than $100 million annually in economic impacts to southern Saskatchewan by purchasing more than 400,000 metric tonnes of grain and other starch-rich crops from 400 plus producers. The plant also processes and sells up to 160,000 tonnes of dried distillers grains (DDGs) every year.

TGF must meet certain closing requirements, but if all goes well, the deal is to be finalized at the end of May.

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