Federated Co-operatives Limited Vice-President of Strategy, Pam Skotnitsky says this is a key acquisition for their Western Canadian operation.

She says the Terra Grain facility at Belle Plaine, Saskatchewan produces about 150 million litres of ethanol per year.

“The fuels that are produced at the Co-op refinery complex and the ethanol that’s produced at the Terra Grains now will be distributed through those 580 communities that we serve. So, this is certainly a big opportunity and a big transaction in our ability to fuel Western Canada.”

FCL is planning to build on what Terra Grain has established by investing in making the plant more efficient and pursuing carbon capture and storage technologies.

She notes this allows the company to meet existing renewable fuels standards and to prepare for the incoming national Clean Fuel Standard.

Federated Co-operatives Limited plans to continue to operate the Terra Grain with its current employees adding they will keep working directly with all of its existing clients and partners.

The sale is expected to officially close on May 31.