REGINA, SASKATCHEWAN, CANADA — Federated Co-operative Ltd. (FCL) has signed a memorandum of understanding to form a joint venture with AGT Food and Ingredients Inc. (AGT Foods) that plans to construct a $360 million canola crush facility in Saskatchewan, Canada.
The partnership with AGT is a 51%-49% 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.
Based in Saskatoon, Saskatchewan, Canada, FCL is a wholesaling, manufacturing, marketing and administrative cooperative owned by more than 160 independent local cooperative associations. AGT Food and Ingredients, based in Regina, is one of the largest suppliers of value-added pulses, staple foods and food ingredients in the world.
The canola crush plant is part of a $2 billion investment FCL is making in the construction of an Integrated Agriculture Complex (IAC), FCL said. FCL is continuing 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. A timeline for the construction of the canola plant was not announced.