Canadian co-operative Federated Co-operatives Ltd (FCL) has paused the two main projects related to its proposed Integrated Agriculture Complex in Regina, Saskatchewan.
The decision to pause the proposed renewable diesel facility and joint venture canola crushing project was made due to regulatory and political uncertainty, potential shifts in low-carbon public policy and escalating costs, the company said on 17 January.
“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,” FCL CEO Heather Ryan said.
In partnership with AGT Foods, the proposed joint venture canola crushing facility would have supplied feedstock to FCL’s renewable diesel facility.
“While it is not the right time to continue our joint venture canola crushing facility, agriculture remains a growth sector in Saskatchewan’s economy, where we will continue to look for new opportunities for investment,” AGT Foods president and CEO Murad Al-Katib said.
Despite pausing two major projects, FCL said it continued to pursue compliance with the Federal Government’s Clean Fuel Regulations.
Investments included carbon capture projects at the Co-op Refinery Complex (CRC) and Co-op Ethanol Complex as part of its plans involving renewable fuel co-processing and blending at CRC, the company said.
According to its website, FCL is a wholesaling, manufacturing, marketing and administrative co-operative owned by more than 160 independent local co-operative associations. These local co-operatives own and operate agricultural centres, food stores, convenience stores and home centres.
