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Ceres Global Ag to build 1.1 million tonne canola crush plant on the Canada-U.S. border

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The speedy enlargement in canola processing capability on the Prairies continues, with the affirmation of one other crush plant to be constructed beside the Canada-U.S. border in southeast Saskatchewan.

Ceres Global Ag is planning to build a canola processing plant and refinery beside its current terminal and worldwide rail crossing southeast of Estevan, at Northgate, Sask.

The ability, which has an estimated price ticket of US$350 million, may have the capability to course of 1.1 million tonnes of canola yearly, producing greater than 500 thousand tonnes of canola oil every year.

Ceres president and CEO Robert Day, in the interview under, says they’ve thought-about constructing a canola processing facility at Northgate for a number of years due to the aggressive benefit of the location on the U.S. border.

“What makes it unique is it’s directly connected to the BNSF railroad, so this will give us an opportunity to originate canola, crush it there, and then the products go outbound on the BNSF railroad directly into the U.S. market or to U.S. ports, and for most of the destinations we’re going to, we would have a significant cost advantage because of the make-up of that location and the direct connection to the BNSF,” he explains.

Day says they see a chance for sturdy canola crush margins in the subsequent 5 to fifteen years based mostly on rising demand for renewable diesel feedstock as governments implement insurance policies aimed toward decreasing carbon emissions. Day says Ceres is in discussions with a number of main gamers in the renewable diesel business in the U.S. about supplying them with giant trains through the BNSF community.

Hear to Robert Day, CEO of Ceres, focus on plans for a $350 million canola crush plant at Northgate, Saskatchewan, the distinctive location of the plant, and the impression of large development in canola processing capability in Saskatchewan:

As with the oil, direct entry by means of the BNSF community may also be a bonus for delivery meal to the dairy feed market and different customers in California, New Mexico, and doubtlessly Mexico and Texas, says Day. “There are a lot of interesting destinations there that we can reach directly.”

The crush plant and refinery might be built-in with the current Ceres elevator and workers at Northgate. Having current infrastructure, together with a 2.7 million bushel elevator and two 120-car loop tracks, will shorten the timeline to full the undertaking, says Day, noting they plan to be operational by the summer season of 2024.

He says Ceres anticipates sourcing two-thirds of its canola for Northgate from Canadian farmers, with one-third coming from farms in North Dakota and Montana, the place they count on to see increased canola acres.

Richardson, Viterra, and Cargill have additionally introduced plans over the previous two months to build new canola crush capability in southern Saskatchewan.

Viterra is planning to build a 2.5 million tonne per 12 months plant at Regina. Cargill is planning a brand new 1 million tonne facility, additionally at Regina, whereas Richardson (JRI) is doubling processing capability to 2.2 million metric tonnes per 12 months at Yorkton. The brand new services are all focused to be up and working in 2024.

Headquartered in Minneapolis, Minnesota, Ceres has over a dozen grain dealing with services in Saskatchewan, Manitoba, Ontario, and Minnesota.

In Western Canada, Ceres’ property embody the Northgate terminal, the former Cargill elevator at Nicklen Siding, Sask, which was acquired in 2020, and Manitoba-based Delmar Commodities, with its seed enterprise now often called Ceres Global Seeds, acquired in 2019. The corporate additionally holds as a 25 per cent stake in Stewart Southern Railway, a short-line railway positioned in southeast Saskatchewan, and a minority curiosity in Canterra Seed.

Ceres additionally owns grain-handling services at Port Colborne, Ontario, and Duluth, Minneapolis, and Shakopee, Minnesota.

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