Federated Co-operatives Limited and AGT Foods are partnering up for a key project for Western Canada.
FCL announced plans for the construction of a $2 billion Integrated Agriculture Complex (IAC) north of the Co-op Refinery Complex in Regina.
Scott Banda, CEO of FCL, says this new complex represents another step in their strategy to adapt to the challenges of a low carbon economy.
"It will ensure that we are producing the transportation fuels to meet consumer needs, while creating jobs, economic prosperity and value-added agriculture production for the benefit of the over 600 communities that Co-op serves across Western Canada."
The new complex will include two components, a renewable diesel fuel plant, and a canola crushing plant.
Banda announced a joint venture partnership with AGT Foods in the construction of a $360 million canola crushing facility at the site.
The new 1.1 million tonne crush facility will provide about 50% of the feed stock required for the 15,000 barrel per day renewable diesel plant.
Banda says both companies believe in ensuring they maximize the potential of value-added opportunities to the benefit of Western Canada.
Murad Al-Katib, President and CEO of AGT Foods, says bringing our infrastructures together provide great leadership and great opportunities for this project.
"We believe that Agriculture is at the forefront of many global challenges, and its increasing becoming a part of society's solution to global protein, food and renewable fuel supplies."
He says the fields of Western Canada's farmers are akin to the oil fields of oil producing nations, but our fields renew annually with each new crop.
"The fields of canola provide a source for production and renewable fuels. They are renewable themselves and contribute positively to both climate change and carbon related initiatives, while combined with nitrogen fixing crops like pulses. At the end of the day, these provide great opportunities for local communities."
Saskatchewan Premier Scott Moe says this is a tremendous opportunity for Saskatchewan and for FCL and AGT Foods, that will bolster the sustainability and economic goals of these companies and the province.
"Our province has the food, fertilizer, and fuel the world needs, including renewable energy from canola grown and processed here, which speaks to the heart of our plan for economic recovery and growth as we work to build an independent, strong and sustainable Saskatchewan."
The FCL-AGT canola crushing facility will ensure Saskatchewan exceeds its 2030 Growth Plan goal of processing 75 per cent of the canola grown in the province. It also supports the Growth Plan goal of increasing agriculture value-added revenue to $10 billion.
The new 1.1 million metric tonne crush facility will provide about 50% of the feed stock required for the 15,000 barrel per day renewable diesel plant.
The new renewable diesel plant is expected to be operational in 2027.
Click here to see more...