FCL pauses projects related to proposed Integrated Agriculture Complex
January 17, 2025
Federated Co-operatives Limited (FCL) is announcing today, that it has paused, the two main projects related to its proposed Integrated Agriculture Complex in Regina.
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 decision to press pause on these two projects is not one we took lightly,” said Heather Ryan, FCL CEO. “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 (JV) partner AGT Foods, have paused their proposed JV 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. Our partnership was built on an aligned vision and culture, and the project reflected that alignment,” said Murad Al-Katib, President and CEO of AGT Foods. “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 JV 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 continues to pursue pathways to compliance with the Federal Government's Clean Fuel Regulations. FCL is making important investments in carbon capture projects at the Co-op Refinery Complex (CRC) and Co-op Ethanol Complex; to ensure it is maximizing its current fuel producing assets, as the company proceeds with plans involving co-processing and blending of renewable fuels at CRC.