Federated Co-Op Limited has reached a deal to buy an ethanol production facility near Belle Plaine from Terra Grain Fuels.
The acquisition is a move Co-Op says will allow them to continue to provide transportation fuels and prepare for the incoming national Clean Fuel Standards.
“As an active contributor to Western Canada’s energy sector, we understand that we have a role to play in reducing greenhouse gas emissions and finding ways to lower the carbon intensity of the fuel we manufacture and distribute,” Cal Fichter, the Vice President of Energy with the Federated Co-Op said in a release. “This purchase not only prepares us to meet the incoming national Clean Fuel Standard, it also fits our commitment to being a responsible and sustainable contributor to Western Canada’s economy for decades to come.”
The plant purchases around 400,000 metric tonnes of grain and other starch-rich crops from more than 400 producers to fuel the production of around 150 million litres of ethanol annually.
The head of Terra Grain says he doesn’t anticipate any interruptions at the facility as a result of the buyout.
“We are very pleased that our business is being acquired by FCL, a long-term and trusted customer of TGF and one of the most stable and successful organizations in Western Canada,” stated Calvin Eyben, President of Terra Grain.
The plant will continue to operate with its 45 existing employees.
The sale will formally close by May 31, pending certain closing conditions.
