SASKATOON, SASKATCHEWAN, CANADA — Federated Co-operatives Ltd. (FCL) has reached an agreement to acquire Terra Grain Fuels’ ethanol plant near Belle Plaine, Saskatchewan, Canada. Financial terms of the transaction were not disclosed.

The 185,000-square-foot facility purchases more than 400,000 tonnes of grain and other starch-rich crops from more than 400 producers each year. The 150-million-liter-per-year plant also processes and sells up to 160,000 tonnes of dried distiller grains each year.

“As an active contributor to Western Canada’s energy sector, we understand that we have a role to play in reducing greenhouse gas emissions and finding ways to lower the carbon intensity of the fuel we manufacture and distribute,” said Cal Fichter, vice-president of energy at FCL. “This purchase not only prepares us to meet the incoming national Clean Fuel Standard, it also fits our commitment to being a responsible and sustainable contributor to Western Canada’s economy for decades to come.”

Calvin Eyben, president of Terra Grain Fuels, called the transaction a “big win” for both companies, as well as the province of Saskatchewan.

“To our valued customers, suppliers and other business partners, it will be business as usual for TGF and we don’t anticipate any interruptions during this transition period,” Eyben said.

Earlier in May FCL announced plans to consolidate feed production from six facilities across the Canadian Prairies to three facilities in Saskatoon, Saskatchewan; Calgary, Alberta; and Moosomin, Saskatchewan.

FCL said the decision to close the facilities addresses “unprecedented competitor consolidation” and a changing market in the feed sector. The cooperative said the changes should allow it to continue to provide feed products and services in the long term.