(Adds interview with executive)
By Rod Nickel
WINNIPEG, Manitoba, April 26 (Reuters) - Private
agribusiness Viterra Inc said on Monday that it will build the
world's biggest canola-crushing plant at Regina, Saskatchewan,
and open it in late 2024, as interest in turning oilseeds into
renewable fuel stokes already strong demand.
Rivals Cargill Inc and Richardson International
also announced plans recently to build plants in the same
Canadian province, with canola futures hitting record highs.
U.S. soybean-crushing capacity is also increasing.
Rotterdam-based Viterra said its new plant will
crush up to 2.5 million tonnes of canola per year, eclipsing
Richardson's plan.
Viterra, owned by commodity trader Glencore PLC,
and Canadian pension managers CPP Investments and British
Columbia Investment Management Corp, did not disclose the
plant's cost.
Canada is the biggest global producer and exporter of
canola, a variant of rapeseed, that crushers process into oil
and meal. Canola oil is used in salad dressings and other foods,
and refiners plan to also produce renewable diesel, a
clean-burning fuel, from it.
"We continue to feel there will be added demand on top of
food, with increased fuel demand," said Kyle Jeworski, chief
executive officer of Viterra's North America operations, in an
interview. "Our intent is to service both markets."
Viterra has no plans to produce renewable diesel from its
own canola oil, he said.
Canola meal is part of feed rations for hogs and fish.
Plans for more crush plants in Saskatchewan underline
questions about supply. Canola plantings have levelled off in
recent years.
Jeworski expects plantings to increase, adding that
developers are producing better seeds to increase yields.
"Our western Canadian farmers are somewhat underappreciated
in terms of the sophistication in technology and improvements in
agronomic practices that they continually undertake - that bodes
very well for projects such as this," he said.
Viterra operates smaller canola crush plants in Quebec,
Manitoba and Washington state.
(Reporting by Rod Nickel in Winnipeg. Editing by Mark Potter
and Marguerita Choy)
Glencore (GLEN)