Federated Co-operatives Ltd. (FCL) announced on January 17th that it has put on hold plans for a 15,000-barrel-per-day renewable diesel plant proposed for development in Regina. The company is also pausing plans for an adjacent canola crush facility, which was to be a key supplier of feedstock for the renewable diesel plant.
These projects, which were expected to begin operations in 2027, had been in development for several years. FCL secured land for the proposed plant in late 2021 and, in the following year, announced plans to develop an Integrated Agriculture Complex that would include a $360 million canola crush facility in partnership with AGT Food and Ingredients Inc.
FCL cited several factors for this decision, including regulatory and political uncertainties, potential changes in government policies related to low-carbon initiatives, and escalating project costs.
“This was not an easy decision,” said Heather Ryan, FCL CEO. “We conducted thorough due diligence and carefully considered the best path forward while ensuring that any investments align with our sustainability goals and provide value to our cooperative.”
The decision to pause these projects underscores the challenges faced by companies investing in large-scale renewable energy projects, particularly in an environment of evolving regulations and economic uncertainty.
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