Federated Co-operatives Ltd. on Jan. 17 announced it has shelved plans for a 15,000-barrel-per-day renewable diesel plant proposed for development in Regina, Saskatchewan. Plans for an adjacent canola crush facility are also being paused.
Plans for the renewable diesel project have been underway for several years. FCL secured a land option for the plant in late 2021. The following year, FCL announced plans to develop an Integrated Agriculture Complex that would also include a $360 million canola crush facility that was under development via a joint venture (JV) partnership between FCL and AGT Food and Ingredients Inc.
The canola crush facility would have supplied approximately 50% of the feedstock required to operate the 15,000-barrel-per-day renewable diesel facility. The plant was originally scheduled to begin operations in 2027.
FCL cited regulatory and political uncertainty, potential shifts in low-carbon public policy, and escalating costs as reasons for shelving plans for the project.
“The decision to press pause on these two projects is not one we took lightly,” said Heather Ryan, FCL CEO. “When making this decision, we undertook a robust due-diligence process, that carefully considered our best pathway to meet compliance obligations, while ensuring investments are appropriate, provide value and benefit to the Co-operative Retailing System and support our short and long-term sustainability goals.”
