Alta. crusher plan takes step forward

Canola processor Bunge has leaped a provincial regulatory hurdle to build a facility in Lamont County east of Edmonton.

Details of the proposed facility are not available from the company, but Ward Toma, Alberta Canola general manager, said the possibility of increased processing capacity in the province is good news.

“There has been lots of speculation about expansion of companies’ crush so this is a positive sign that a company is making a move. They are securing access to land so that’s a good thing,” he said, cautioning the deal is not yet finalized.

Demand for canola oil remains strong, said Toma, and increasing domestic processing capacity to match the harvest of the western Canadian mainstay crop will strengthen the sector.

The proposed facility has been approved for a section of land and includes a rail loop, according to provincial documents identifying the location and its approval under the Foreign Ownership of Land regulations.

Tom Koep, Lamont County economic development manager, said development permits have yet to be issued and due diligence needs to be completed before plant construction can proceed.

“The foreign ownership (regulation) step was a necessary step in order to move forward obviously, but, as we say, it is one of several that they have to make before they get to the point where they saying it’s absolutely, positively going ahead,” said Koep.

With Lamont County being part of Alberta’s Industrial Heartland region, which also includes Strathcona and Sturgeon counties along with Fort Saskatchewan, Koep said his municipality is well positioned for a canola facility.

“There is a number of heavy industries in that area,” said Koep, listing several petrochemical facilities. “What there is not a lot of is agricultural (industries).”

Shorter transportation routes and a guaranteed buyer for local farmers’ canola is always welcome news, he added.

“Should this facility go ahead, it would be good for the farmers in the region, and they would need a very significant amount of canola to supply,” said Koep.