Co-op refinery strikes land deal with City of Regina for renewable diesel project

The Co-op Refinery Complex is shown in this file photo.

REGINA -

The City of Regina has entered into a land agreement with the Co-op refinery that gives the company the option to buy a section of city-owned land for $5.8 million -- near the existing complex -- to support a biofuel project.

Co-op representatives addressed Wednesday's executive committee meeting -- saying the land would allow them to further the development of its renewable diesel production facility in Regina. Co-op said this would help the company continue to be a major economic contributor in the city.

The committee voted 10-1 in favour of the agreement.

"We know that we have millions of acres in crop production and being able to keep that crop here and add to it and supply services that are sustainable or supply products that are sustainable, not just for food but you heard today biodiesel,” Regina Mayor Sandra Masters said. “These are just enormously significant for the transformation of our local economy, both greener but also that agricultural focus."

The estimated cost of the biofuel facility is between $1.5 and $2 billion. It’s expected to bring around 1,500 construction jobs and 150 permanent positions to the city.