Cargill investigating canola crushing plant in Kwinana

Agribusiness Cargill Australia and the state government are in talks over a potential canola crushing plant which could feed a biofuels hub in Kwinana. 

The parties entered exclusive lease negotiations for a parcel of land adjacent to CBH’s Kwinana Grain Terminal in the southern suburbs industrial area.

US-based Cargill is investigating potentially developing a canola crush plant which would utilise locally grown canola in the process of producing canola oil.

It's also in talks with CBH about how the group’s existing supply chain may be able to support accumulation and export connections for the proposed oilseed crushing plant.

Cargill's canola crushing plant would be expected to supply the biofuel market in Australia, potentially including Bp's plans to build a $1 billion biofuels facility in Kwinana. 

Bp is planning to redevelop its mothballed Kwinana refinery into a biofuel production hub, with its proposal given the go-ahead by the Environmental Protection Authority earlier this year.

If BP's proposed biofuel production plant gets legs, it's expected to turn vegetable oils, animal fats and other biowaste into 10,000 barrels of renewable diesel and sustainable aviation fuel per day by 2026.

Premier Roger Cook said Cargill's potential canola crushing plant was a hugely exciting project for Kwinana and for WA.

He said it would expand local processing capacity, create local jobs and position the state 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. 

"From battery materials to clean energy and agricultural processing, we're throwing everything at securing major projects in Kwinana that will set up our state's economy for the future."

The state government said it would work with Cargill on a lease agreement for the site over the next couple of months.

Cargill Australia managing director Zsolt Kocza said they were working closely with the state government to move the project forward.

"We see a range of benefits including adding processing capacity to Australia and the ability to process Western Australian canola to oil and meal which will service the domestic and export oil and meal markets besides supplying to the emerging biofuel market both in Australia and internationally,” he said.

CBH Group chief executive Ben Macnamara said the development provided an opportunity for a canola crushing plant to be located next to one of CBH's critical supply chain assets - the Kwinana Grain Terminal.

"In line with our purpose to create sustainable value for WA grain growers, we're open to considering opportunities that provide growers with market optionality that utilises our supply chain,” he said.

CBH's east coast focused rival GrainCorp has previously outlined plans to develop an oilseed crushing plant in WA and had reportedly been in negotiations about securing a site.