Federated Co-operative Limited (FCL), Saskatoon, Sask., announced on Jan. 17 that it has signed a Memorandum of Understanding to form a joint venture (jv) partnership with AGT Food and Ingredients Inc., Regina, Sask., to construct a C$360 million canola crush facility as part of a new C$2 billion Integrated Agricultural Complex (IAC) in Saskatchewan.
The canola crush facility will supply approximately 50 percent of the feedstock required for a 15,000 barrel/day renewable diesel plant planned for the Regina area, just north of FCL’s existing Co-op Refinery Complex (CRC). FCL announced last November that it had purchased the land for the site for C$5.48 million.
“We are so pleased to have AGT as a partner,” said 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.”
FCL will hold the majority ownership stake in the jv, at 51 percent. FCL plans to have the renewable diesel facility operational by 2027. FCL also recently reported that it will invest C$500 million in carbon capture and storage at the CRC in Regina and the Co-op Ethanol Complex in Belle Plaine, Sask.
“I applaud the leadership Scott and the team at FCL have shown in working together to pursue this exciting opportunity,” said Murad Al-Katib, President and CEO of AGT Foods. “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 projects that comprise the IAC will create an estimated 2,750 jobs during the construction phase, FCL reported. Once complete, the IAC could potentially create up to 300 permanent jobs, with the gross economic output of the complex estimated at C$4.5 billion. The IAC investments are subject to continued due diligence as well as environmental, regulatory, and board approvals, FCL said.
“Our government is grateful FCL and AGT Foods are moving forward with this significant investment that will create thousands of jobs and expand value-added processing in Saskatchewan,” said Premier Scott Moe. “With this project, more than C$12 billion of capital investment has been announced for the province in the last year, including about C$2 billion to build four new canola crush plants. FCL’s new renewable diesel facility will reinforce Saskatchewan’s reputation as one of the most sustainable producers of energy in the world.”
FCL has been in an aggressive expansion mode, having completed a C$5 million upgrade to its Brandon, Man., fertilizer terminal last summer, and launching a recent jv with Blair’s Family of Companies, a family-owned retail business in Saskatchewan (GM Aug. 13, 2021). Under that deal, the jv acquired seven Blair’s ag retail locations in Saskatchewan.