Federated Co-operatives Limited (FCL) has entered a joint venture with AGT Food and Ingredients Inc. (AGT Foods) to build a $360 million canola crush facility. The facility is part of a $2 billion investment FCL is making in the construction of an integrated Agriculture Complex.
The partnership with AGT is a 51 per cent - 49 per cent split, with FCL holding the majority ownership stake. The canola crush facility will supply approximately 50% 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,” says 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.”
The announcement builds on FCL's recent announcement about 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.
FCLand AGT Foods say the IAC creates opportunities for local Co-ops and agricultural producers. Through the integration of agriculture with plant-based fuel production, FCL is providing farmers with another marketing opportunity for their crops and local Co-ops with another opportunity to build even stronger relationships with producers. From seed to tank, Co-op and AGT will be able to provide farmers with options for their products at all levels of the agricultural value chain.