Cargill considers building canola-crush plant in Kwinana, Western Australia

Canola

A job-creating canola crush plant in Kwinana, Western Australia, is a step closer to reality with the Cook government entering exclusive lease negotiations with Cargill Australia for a parcel of land on the industrial strip.

Cargill is investigating the potential to develop a world-class canola-crush plant on a site adjacent to the CBH Kwinana Grain Terminal, subject to all necessary regulatory approvals.

The project would service both the domestic and export oil and meal market, utilize locally grown canola and expand Western Australia’s processing capacity for canola oil.

Importantly, it would supply the emerging biofuel markets in Australia and around the world, providing a clean energy source for the future.

The state government and Cargill will now work together to negotiate a lease agreement for the site over coming months, while Cargill continues discussions with CBH Group and other parties on the project.

The Cook government has secured a range of major new projects for the Kwinana and Rockingham industrial areas, bringing billions of dollars of investment into the state and locking in a strong industrial future for the southern suburbs.

“This is a hugely exciting project for Kwinana and for Western Australia—expanding our local processing capacity, creating local jobs and positioning our state in the clean biofuel market,” said Premier Roger Cook.

“My government will now work closely with Cargill to progress this project and ensure we provide the land and support to keep Kwinana at the heart of our state’s industrial future,” Cook added.

Zsolt Kocza, Cargill Australia’s managing director, said, “We see a range of benefits including adding processing capacity to Australia and the ability to process Western Australian canola to oil and meal, which will service the domestic and export oil and meal markets besides supplying to the emerging biofuel market both in Australia and internationally. Cargill has been in discussions with several parties regarding this potential crush-plant facility in Kwinana including CBH Group and how their existing supply chain may be able to support accumulation and export connections for the plant.”

CBH Group CEO Ben Macnamara said, “We welcome this development, which provides the opportunity for a canola-crushing plant to be located next to one of CBH’s critical supply-chain assets—the Kwinana Grain Terminal. In line with our purpose to create sustainable value for Western Australia grain growers, we’re open to considering opportunities that provide growers with market optionality that utilizes our supply chain. We’re looking forward to continuing discussions with Cargill to assess this opportunity.”