Federated Co-operatives secures land option for renewable diesel plant
Federated Co-operatives Ltd. announced in November that the Regina City Council in Saskatchewan, Canada, has officially approved an offer to purchase land north of the Co-op Refinery Complex. The land would be used to construct a renewable diesel plant. Construction of the new plant is still subject to market conditions and securing necessary government approvals and support. The CAD$5.48 million (USD$4.35 million) land purchase option is an integral step towards the construction of the plant.
“This project will play a vital role in our transition to the low carbon economy,” said Scott Banda, CEO of Federated Co-operatives. “Renewable diesel will provide our local co-ops with the ability to sustainably support Western Canada’s fuel needs well into the future, while ensuring our cooperative has another viable solution to meet our regulatory obligations. We thank Mayor Masters and Regina City Council for recognizing the benefits of this project, for the city, for FCL and for Western Canada.”
The construction of a renewable diesel plant will create approximately CAD$1.85 billion (USD$1.47 billion) in economic activity through job creation and construction spinoffs. Once operational, the plant will employ up to 150 people and utilize primarily locally grown canola as its main production feedstock. This will, in turn, provide additional economic opportunities for Regina residents and local agricultural producers.
“This major project is a tremendous opportunity for both the sustainability and the economic goals of our city,” said Sandra Masters, mayor of Regina. “By approving this land option, the council is further signaling that Regina is a place for investment. We are so pleased to have partners like FCL that want to invest locally and that choose to combine their long-term strategic goals with the future prosperity of our city.”
Federated Co-operatives plans to have the renewable diesel facility operational by 2027. Securing this land option allows for the organization to begin formally assessing the project from a feasibility, engineering, and regulatory standpoint. An official decision on the facility’s construction will follow as the assessment phase of the project progresses.
This land option builds on Federated Co-operatives’ recent announcement that it will invest CAD$500 million (USD$397 million) in carbon capture and storage at the Co-op Refinery Complex in Regina and the Co-op Ethanol Complex in Belle Plaine. Both projects will provide additional economic spinoff for the Regina region and help further Federated Co-operatives’ sustainability goals. All of these projects represent important components of the co-op energy roadmap, which is guiding the company in its transition to the low-carbon economy.
In April, Federated Co-operatives purchased the assets of True North Renewable Fuels, a proposed renewable diesel project in Regina.