Federated Co-operatives Limited (FCL) and AGT Foods have announced a joint venture partnership that will see a 1.1 million metric tonne/year canola processing facility in Regina, Sask.
The canola crush plant is part of a larger $2 billion investment FCL is making in the construction of an Integrated Agriculture Complex (IAC).
The announcement builds on the company’s recent announcement to construct a renewable diesel facility in the Regina area. The IAC will include the diesel plant and the canola crushing plant that will produce the feedstock for the plant-based fuels produced at the renewable diesel facility, the company says.
The partnership with AGT is a 51 per cent /49 per cent split, with FCL holding the majority ownership stake. The canola crush facility will supply approximately 50 per cent of the feedstock required for a 15,000-barrel-per-day renewable diesel plant, with the remainder of the supply contracted from other canola crush facilities.
Scott Banda, chief executive officer at FCL, says as far as a timeline goes, they are looking at having the entire IAC — which includes both the crush and the renewable diesel plant — running by 2027.
“We look forward to providing producers with another marketing opportunity,” Banda explains. “There’s a demand for quality plant-based protein. This announcement also provides our owners the ability to build even stronger relationships.”
Scott Moe, Premier of Saskatchewan, says the IAC will create $4.5 billion in direct and indirect economic benefits.
“The importance of this announcement should not be discounted on any course,” says Premier Moe. “This is one of the largest investments that has ever been made in this province. This is truly a world class synergistic approach that will benefit people in Regina, in Saskatchewan, and around the world.”
Murad Al-Katib, president and chief executive officer of AGT Foods says agriculture is at the forefront of many global challenges, and is providing societal solutions to global protein requirements, food, and renewable fuel supplies.
“This project demonstrates Saskatchewan’s leadership in plant-based foods, fuels and feeds and brings together two Saskatchewan companies with the shared goals of decarbonizing our economy and adding value to Western Canadian crop production,” Al-Katib says. “It’s an integrated approach. We’re taking it from seed to tank, and from farm to fuel.”
When it comes to differentiating from other recent crush facility announcements, Banda explains that FCL is not concerned, as they believe the “opportunity in canola is quite large.”