FCL to enter joint venture to construct $360M canola crush facility
Mike Edwards
News canola crush facility
The new canola crush facility will supply approximately 50% 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. Federated Co-operative Limited (FCL) has signed a memorandum of understanding to form a joint venture (JV) partnership with AGT Food and Ingredients Inc. The newly formed JV will look to construct a $360 million canola crush facility.
The partnership with AGT Foods is a 51%-49% split, with FCL holding the majority ownership stake. The canola crush facility will supply approximately 50% 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.
According to Scott Banda, CEO of FCL, “we are excited to realize the vision we share to bring value-added opportunities to the agriculture sector in both farm-to-tank and farm-to-fork opportunities that will benefit the communities we serve.”
Murad Al-Katib, president and CEO 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.
AGT Foods current main facility in Regina.
“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. We believe that AGT’s capabilities in grain logistics and plant protein ingredients combined with FCL’s strong history in energy and farm inputs creates a powerful partnership that will benefit the communities in which we operate.”
The canola crush plant is part of a $2 billion investment FCL is making in the construction of an Integrated Agriculture Complex (IAC).
The announcement builds on the company’s recent announcement that FCL is advancing plans to construct a renewable diesel facility in the Regina area. The IAC will include the recently announced renewable diesel plant and canola crushing plant that will produce the feedstock for the plant-based fuels produced at the renewable diesel facility.
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