Federated Co-operatives Ltd. announced in 2022 it would build the two facilities with a more than $2 billion investment. (CJME files)

By Lisa Schick - CKOM News

Pumping the brakes

Federated Co-op to pause canola crush and renewable diesel facilities

Jan 18, 2025 | 10:17 AM

On Friday, Federated Co-Operatives Ltd. (FCL) announced it would be pausing work on two huge projects announced three years ago — a canola crush facility and a renewable diesel plant — both of which would have been located in a proposed Integrated Agriculture Complex in Regina.

“We’ve been working through this and planning through this process for some time, and we approach everything with a stage gate in terms of what makes sense and what options are,” explained FCL CEO Heather Ryan..

Ryan said there were a number of factors working against the projects, including regulator and political uncertainty and that framework throughout.

“Regulatory shifts, changes south of the border in terms of their regulations, the IRA (U.S. Inflation Reduction Act) — the different things that occurred there that impacted our markets — (and) obviously costs, we’ve seen huge inflation and shifts in the markets,” Ryan said.

The facilities had been in the planning stages for three years. Ryan said there were designs and engineering done but there was no start to construction.

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FCL and AGT Foods held an open house in 2023 showing off what the proposed Integrated Agriculture Complex xwould look like (CJME files)

Ryan said for the projects to be brought back, “un-paused,” the right circumstances would have to present themselves to make them feasible.

The canola crush plant was to be done in partnership with AGT Foods, and Ryan said both parties agree it’s the right decision going forward.

“While it is not the right time to continue our JV canola crush facility, agriculture remains a growth sector in Saskatchewan’s economy, where we will continue to look for new opportunities for investment,” AGT President and CEO Murad Al-Katib said in a news release.

When it was announced, the two facilities were touted as being part of a $2 billion dollar investment in the area while bringing thousands of construction jobs and hundreds of permanent jobs.

Ryan said despite the decision, FCL will continue to have a huge economic impact in Western Canada.

“This would have definitely added, but we’re not taking anything away and we still have additional projects and things that we’re looking at,” she said.

FCL made its announcement the same week Canadian approval was given for a merger between Bunge and Viterra, putting Viterra’s proposed canola crush facility in the Regina area in question.

Ryan said the timing was a co-incidence.