Federated Co-operatives pauses renewable diesel, canola-crush projects in Saskatchewan

Federated Co-operatives Ltd. announced Jan. 17 that it has paused two main projects—a renewable diesel production facility and canola-crush plant—related to its proposed integrated agriculture complex in Regina, Saskatchewan, Canada. 

“Due to regulatory and political uncertainty, potential shifts in low-carbon public policy and escalating costs, FCL’s proposed renewable diesel facility and joint-venture canola crush projects, as originally conceived, are paused for the foreseeable future,” the company stated.  

 FCL CEO Heather Ryan said, “The decision to press pause on these two projects is not one we took 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.” 

As indicated, FCL and joint-venture partner AGT Foods have paused their proposed canola-crush facility, which would have supplied feedstock to FCL’s wholly owned renewable diesel facility. 

“I want to take this opportunity to thank Heather and everyone at FCL,” said Murad Al-Katib, the president and CEO of AGT Foods. “Our partnership was built on an aligned vision and culture, and the project reflected that alignment. 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 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.” 

While two major projects have been paused, FCL said it continues to pursue pathways to compliance with the Canadian federal government’s Clean Fuel Regulations.  

FCL said it is making important investments in carbon-capture projects at the Co-op Refinery Complex and Co-op Ethanol Complex to ensure it is maximizing its current fuel-producing assets, as the company proceeds with plans involving coprocessing and blending of renewable fuels at CRC. 

In April 2021, Federated Co-operatives purchased the assets of True North Renewable Fuels, a proposed renewable diesel project in Regina. 

In November 2021, the Regina city council approved an offer for Federated Co-operatives to purchase land for the project development.  

In 2022, Topsoe announced Federated Co-operatives had chosen its HydroFlex™ process technology for renewable diesel production.  

Before the pause in the project, renewable diesel production in Regina was expected to start in 2027.