Canola crush plant, renewable diesel facility planned for Regina put on indefinite pause: FCL

The sign for the Co-op Refinery Complex in Regina can be seen in this file photo. (David Prisciak/CTV News)

A new canola crush and renewable diesel facility planned to be located next to the Co-op Refinery in Regina have been put on an indefinite pause, according to Federated Co-operatives Limited (FCL).

In a news release on Friday, FCL said the projects will be put on hold because of political uncertainty, potential shifts in low-carbon public policy, and increasing financial costs.

Both of the facilities were to be the main projects of FCL’s proposed Integrated Agriculture Complex that would’ve been north of the current Co-op Refinery in Regina.

FCL’s main partner in the canola project was Regina-based AGT Foods.

Heather Ryan, FCL’s CEO said the decision to pause the projects was not an easy one to make or one that was taken lightly.

“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,” Ryan said in the release.

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President and CEO of AGT Foods Murad Al-Katib said he is confident that Saskatchewan farmers' canola, along with cereals and pulses will continue to be a leading export for the province.

“While it is not the right time to continue our JV [joint venture] canola crush facility, agriculture remains a growth sector in Saskatchewan’s economy, where we will continue to look for new opportunities for investment,” Al-Katib said while also thanking FCL for its shared partnership and vision.

Ryan affirmed that the relationship between the two sides remains positive despite the outcome of the projects.

“I think the world of Murad and AGT and there are non cencerns on our end with that relationship at all,” Ryan told CTV News.

FCL did not say when the projects could potentially become a reality once again, but Ryan was confidently able to say that costs for the project more than doubled since it was announced and called that a substantial increase.

When the projects were announced in January 2022, FCL said that it was expected to create more than 2,500 jobs during construction and 300 permanent positions once in operation.

The direct economic impact was forecasted to be in the neighbourhood of $4.5 billion.

It was initially believed the diesel facility would be operating by 2027, with the crush facility beginning its operations even earlier.

For now, Ryan says FCL will continue to work towards meeting and exceeding standards at the refinery in Regina as well as its ethanol complex in nearby Belle Plaine.

“We are continuing with our carbon capture projects at both of those facilities as well as we’ve been working through our co-processing at the refinery and we will continue to look at the blending of our renewable fuels at the refinery as well,” Ryan said.

Ryan said the two projects were one component of FCL’s roadmap to carbon standards compliance.