FCL to construct $2B agriculture complex
by CM Staff
This project builds on the company's recent announcement that FCL is advancing plans to construct a renewable diesel facility in the Regina area.
SASKATOON and REGINA — Federated Co-operative Limited have signed a memorandum of understanding to form a joint venture partnership with AGT Food and Ingredients Inc. The newly formed JV will look to construct a $360 million canola crush facility.
The company stated that the partnership with AGT is a 51 and 49 per cent split, with FCL holding the majority ownership stake. The canola crush facility will supply approximately 50 per cent 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.
“We are so pleased to have AGT as a partner. Murad and his team are already playing an instrumental role in Saskatchewan agriculture and will bring a great deal of expertise to this venture,” said Scott Banda, CEO of FCL in a statement.
“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.”
The canola crush plant is part of a $2 billion investment FCL is making in the construction of an Integrated Agriculture Complex. This project 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.
“This historic announcement is about the future of our business. 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,” said Banda.
