By CJME News

Co-op to build canola crushing, renewable diesel plant in Regina

Jan 17, 2022 | 2:31 PM

REGINA, Sask. – Federated Co-operatives Limited (FCL) unveiled plans to develop an agriculture complex north of the Co-op Refinery Complex in Regina Monday.

The “integrated agriculture complex” will include a renewable diesel facility, along with a new canola crushing plant.

“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,” FCL’s release states.

The FCL renewable diesel production plant alone represents a nearly $2 billion investment with an expectation of creating more than 2,500 construction jobs and 150 permanent operating jobs, according to the government news release.

Those jobs are particularly exciting for Regina mayor Sandra Masters.

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While the construction jobs will be temporary, she believes they’re a great opportunity for many people in the city.

“It means for our local economy not just that construction workers get back to work, but that we can actually have a project to further train and provide skill development for young folks or people perhaps needing to change careers,” she said a news conference announcing the project.

“These are great jobs, in terms of the opportunity it provides to folks either looking to move here (or) looking to advance and change careers. They’re mortgage-paying jobs,” she continued.

Masters is also encouraged by the prospect of adding tax revenue for the city.

“We think we have one of the great cities in Canada … (We) want to see ourselves grow to increase tax revenue, to increase our financial sustainability and continue to invest in our infrastructure,” Masters said. “I think it’s enormous for Regina and area.”

AGT Foods is partnering with FCL to build the canola crushing facility, which will help Saskatchewan surpass its 2030 growth plan goal of processing 75 per cent of the canola grown in the province.

The entire complex could lead to economic benefits of roughly $4.5 billion.

“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,” Moe added.

The FCL renewable diesel plant will be able to produce up to 15,000 barrels per day, or about 1 billion litres per year. The canola crush facility will use 1.1 million tonnes of canola seed to produce 450,000 tonnes of oil, supplying approximately 50 per cent of the feedstock required for the renewable diesel plant. The remainder of the supply will be contracted from other canola crush facilities.

“We know the synergies between transportation fuel production and agriculture will play a vital role in Western Canada’s transition to the low carbon economy,” FCL CEO Scott Banda said in the release. “We believe our co-op retailing system is well-positioned to integrate and capture the full agricultural value-chain in the production of fuel and value-added products. We are excited about our partnership with AGT and ultimately what this announcement means for value-added agriculture in our province.”

The two companies hope to have the entire facility up and running by 2027. However, if there are changes to government regulations over that span, it’s possible it could be finished earlier.

With facilities and outlets in 249 communities in Saskatchewan, FCL and local co-ops employ more than 10,000 workers across the province.