Federated Co-Operatives Limited (FCL) announced Friday afternoon it is pausing two major projects in Regina that are part of it’s “Integrated Agriculture Complex” – the renewable diesel facility and joint venture canola crush plant with AGT Foods.
FCL cites “regulatory and political uncertainty, potential shifts in low-carbon public policy, and escalating costs” as reasons for the decision, which CEO of Federated Co-Op Heather Ryan said “is not one we took lightly”.
When asked if the looming American tariffs was a factor in the decision, Ryan said no, although noted if they were to be implemented it would add to costs. She also said any developments south of the border they take into consideration in decision making.
Also asked if uncertainty around the federal government had a role in the pause of the projects, Ryan re-iterated the regulatory uncertainty, coupled with a potential change in government, “has played a big part in our decision to pause.”
Both facilities, if and when they are built, would work in tandem. The canola crush facility would be “providing about half the input of feedstock for the renewable diesel facility” and the renewable diesel facility “was designed to produce 15 thousand barrels per day” explained Ryan.
President & CEO of AGT Foods Murad Al-Katib thanked FCL for their partnership in the canola crush project, one that was ” built on an aligned vision and culture.”
Al-Katib added, “Canola is a key part of the production rotation of Saskatchewan farmers, along with their cereals and pulses, and will continue to be a leading agricultural export for the Province. 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.”
FCL says next steps include “pathways to compliance with the Federal Government’s Clean Fuel Regulations” and making “investments in carbon capture projects at the Co-op Refinery Complex (CRC) and Co-op Ethanol Complex; to ensure it is maximizing its current fuel producing assets, as the company proceeds with plans involving co-processing and blending of renewable fuels at CRC.”
Comments