(Alice McFarlane/farmnewsNOW Staff)

By Alice McFarlane

Ethanol production

Federated buys ethanol plant near Regina

May 22, 2019 | 5:30 PM

Federated Co-operatives Limited (FCL) is buying the Terra Grain Fuel ethanol plant at Belle Plaine.

The 150 million litre facility uses more than 400,000 tonnes of grain from roughly 400 farmers and produces 160,000 tonnes of dried distillers grains each year.

FCL Vice President Pam Skotnitsky said the purchase will position local co-ops to provide transportation fuels to members to meet renewable fuel standards.

“We’re really excited about the acquisition. Through this purchase we’re able to support agriculture and energy and the economy in Western Canada in one transaction,” Skotnitsky said. “It really was a win, win, win strategy when we look at it from that perspective.”

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Skotnitsky said farmers and consumers will benefit as the plant will continue to produce ethanol.

“It will enable us to meet ongoing renewable fuel standards so we see that we will still need to continue to blend ethanol into our gas. From an agriculture perspective there’s about 400 producers out there that sell their product to the Terra Grains facility so we will continue to operate that facility and accept those commitments that we have with producers.”

The sale is expected to be finalized by May 31. The financial details will not be disclosed.

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alice.mcfarlane@jpbg.ca

On Twitter: @AliceMcF