This field, north of the refinery, was expected to host a renewable diesel facility and a canola crush plant, if current plans go ahead. Those plans are now on pause. FCL/Twitter
SASKATOON, REGINA – While the Government of Saskatchewan has fought the carbon tax policy tooth and nail, a related policy, known as the “Clean Fuel Regulations” was a driving factor in the dramatic expansion of canola crush capacity in Saskatchewan. All those crush plants weren’t being built because everyone decided they wanted more margarine. Rather, the driving force was to provide biofuels for blending with transportation fuels, to reduce the carbon footprint of said fuels.
With the resignation of Prime Minister Justin Trudeau on Jan. 6, and a new Conservative government under Pierre Poilievre widely expected to replace the Liberal government, one of the expectations is that the carbon tax will soon be gone. And the Clean Fuel Regulations has sometimes been referred to as a “second carbon tax,” including by Saskatchewan ministers.
Together with the consumer carbon tax and the Output Based Pricing System, the Clean Fuel Regulations (also referred to as the Clean Fuel Standard) was part of a sweeping system of federal climate change initiatives meant to effectively and increasingly punish the continued use of hydrocarbon fuels and to “decarbonize” those still remaining in use.
In that context, Federated Co-operatives Limited (FCL) is announced on Friday, Jan. 17 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 release said.
- 0086 Sask Gov Oil and Gas Incentive Programs0086 Sask Gov Oil and Gas Incentive Programs
- 0085 Turnbull snow removal call office0085 Turnbull snow removal call office
- 0084 EMP Metals Pipeline Online0084 EMP Metals Pipeline Online
- 0077 Caprice Resources Stand Up For Free Speech0077 Caprice Resources Stand Up For Free Speech
- 0076 Latus only0076 Latus only
- 0061 SIMSA 2024 For Sask Buy Sask0061 SIMSA 2024 For Sask Buy Sask
- 0055 Smart Power Be Smart with your Power office0055 Smart Power Be Smart with your Power office
- 0051 JML Hiring Pumpjack assembly0051 JML Hiring Pumpjack assembly
- 0049 Scotsburn Dental soft guitar0049 Scotsburn Dental soft guitar
- 0041 DEEP Since 2018 now we are going to build0041 DEEP Since 2018 now we are going to build
- 0032 IWS Summer hiring rock trailer music
- 0022 Grimes winter hiring
- 0021 OSY Rentals S8 Promo
- 0018 IWS Hiring Royal Summer
- 0013 Panther Drilling PO ad 03 top drive rigs
- 0011
- 0006 JK Junior
- 0002 gilliss casing services0002 gilliss casing services
- 9002 Pipeline Online 30 sec EBEX9002 Pipeline Online 30 sec EBEX
- 9001
“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.”
The projects were initially announced in January, 2022, as reported by Pipeline Online here.
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 said it, “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.”
According to FCL, no dirt had moved on the project yet.
Pendulum swinging
It’s the second announcement in Saskatchewan in two days showing the pendulum swinging from “climate change over all else” policy framework to a perhaps more pragmatic one on carbon dioxide policy. On Thursday, Jan. 16, Crown Investments Minister Jeremy Harrison concluded two days visiting Coronach and Estevan, telling coal workers the government sees a future in coal, and that it would be looking to refurbish its coal fleet for decades of operation, instead of shutting it down by 2030. His op-ed on the topic was initially published here, on Pipeline Online, Thursday evening.
- 0086 Sask Gov Oil and Gas Incentive Programs0086 Sask Gov Oil and Gas Incentive Programs
- 0085 Turnbull snow removal call office0085 Turnbull snow removal call office
- 0084 EMP Metals Pipeline Online0084 EMP Metals Pipeline Online
- 0077 Caprice Resources Stand Up For Free Speech0077 Caprice Resources Stand Up For Free Speech
- 0076 Latus only0076 Latus only
- 0061 SIMSA 2024 For Sask Buy Sask0061 SIMSA 2024 For Sask Buy Sask
- 0055 Smart Power Be Smart with your Power office0055 Smart Power Be Smart with your Power office
- 0051 JML Hiring Pumpjack assembly0051 JML Hiring Pumpjack assembly
- 0049 Scotsburn Dental soft guitar0049 Scotsburn Dental soft guitar
- 0041 DEEP Since 2018 now we are going to build0041 DEEP Since 2018 now we are going to build
- 0032 IWS Summer hiring rock trailer music
- 0022 Grimes winter hiring
- 0021 OSY Rentals S8 Promo
- 0018 IWS Hiring Royal Summer
- 0013 Panther Drilling PO ad 03 top drive rigs
- 0011
- 0006 JK Junior
- 0002 gilliss casing services0002 gilliss casing services
- 9002 Pipeline Online 30 sec EBEX9002 Pipeline Online 30 sec EBEX
- 9001