A proposed canola crushing plant that could feed BP’s half-a-billion-dollar biofuel proposal is a step closer, after Cargill signed a lease with the state government.
A proposed canola crushing plant that could feed BP’s half-a-billion-dollar biofuel proposal is a step closer, after Cargill signed a lease with the state government.
Agribusiness Cargill and the state government have inked a two-year lease option after announcing earlier this year they had entered talks over the parcel of prime land.
The short lease option is for a parcel of land in the Rockingham Industrial Area, adjacent to the CBH Kwinana Grain Terminal in Perth's southern suburbs.
US-headquatered Cargill said it was currently working through a range of internal and external approvals regarding proposed plant.
Cargill and major grain handler CBH Group, back in March, said they were in discussions over how to co-operative’s existing supply chain may be able to support the proposed plant.
The canola crushing plant could supply BP’s proposed biofuels plant, which cleared another hurdle after passing planning authority approval yesterday.
It could also supply both domestic and international biofuel markets using WA grown canola transported by rail to the grain terminal.
Competitor GrainCorp, which operates oilseed crushing plants in WA and elsewhere, has been assessing a $500 million crush facility on either the west or east coast.
The ASX-listed company plans to build a new crushing plant with capacity upwards of 750,000 tonnes per year, in a sector it sees as having bullish demand forecasts.
Cargill has now secured the parcel of land in the strategic industrial area and says its currently investigating the potential of building the plant on the site.
“Cargill Australia has signed a two-year land lease option with the WA Government for a parcel of land in the Rockingham Industrial Area adjacent to the CBH Kwinana Grain Terminal,” a Cargill spokesperson said.
“Cargill is currently investigating the potential to develop a world-class canola crush plant on the site subject to all necessary regulatory approvals.
“Cargill is currently working on a range of internal and external approvals regarding proposed plant.”
Upon announcing the lease negotiations in March, Premier Roger Cook said the proposal operation could position WA in the clean biofuel market.
"My government will now work closely with Cargill to progress this project and ensure we provide the land and support to keep Kwinana at the heart of our State's industrial future,” Mr Cook said at the time.
