Home Crop Monitoring Clean fuel regulations driving canola crush expansion on the Prairies

Clean fuel regulations driving canola crush expansion on the Prairies

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Inside the final month, three grain corporations have introduced plans so as to add almost 5 million tonnes of canola crush capability in Western Canada.

Richardson first introduced a doubling of manufacturing to 2.2 million tonnes per yr at its Yorkton, Sask., website, then Cargill introduced plans to construct a brand new 1 million tonne plant at Regina, Sask. and broaden present vegetation at Clavet, Sask. and Camrose, Alta.

Now, Viterra has confirmed plans for a large 2.5 million tonne per yr plant simply north of Regina.

Kyle Jeworski, CEO of Viterra North America, says that the introduced crush and processing plant deliberate for Regina will use extra canola seed than Canada presently ships to some export markets, together with Japan or Mexico.

The expanded crush capability, added jobs, and financial exercise are being cheered by the agriculture business, canola growers and extra, however what’s driving this seemingly sudden development?

New fuel requirements aimed toward lowering carbon emissions are driving at the very least a part of the development, as Jeworski says the Canadian authorities’s proposed Clean Fuel Commonplace regulation is simply the newest catalyst to extend demand for canola oil, past development in the meals business.

“When we look at the crushing industry, it’s been running at full capacity for last number of years, supplying predominantly food but some fuel demand. With the Clean Fuel Standards act we see an even increased opportunity to supply canola oil as an essential feedstock into the renewable fuel industry,” Jeworski says, discussing the plans for the Regina plant in the interview under. (story continues under)

A number of corporations, together with True North Renewable Fuels, which was purchased by Federated Co-op earlier this month, and Covenant Vitality, are taking a look at constructing renewable diesel manufacturing amenities in southern Saskatchewan, which might require vital quantities of canola oil.

There’s additionally the matter of supplying this elevated home crush demand and satisfying export demand of canola seed and oil. Doing the math, both common canola yields must climb or acreage must broaden considerably — or each — to create extra commodity. Conversely, the home crush may eat some of what’s presently exported.

From Viterra’s perspective, Jeworski says they’re assured western Canadian farmers are as much as the job. That, mixed with new and improved genetics, he says, bodes nicely for a big enhance in manufacturing now, and in to the future.



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