Cargill is looking at building a canola-crushing plant at Kwinana on a site next to CBH’s grain terminal. Photo: CBH Group

CARGILL Australia is investigating the potential for a canola-crushing plant located next to CBH’s Kwinana Grain Terminal.

Cargill is already in exclusive lease negotiations with the Western Australian Government about securing the site.

The plant would crush WA canola and service domestic and export oil and meal markets, with oil available for the emerging biofuel market in Australia and around the world.

The WA Government and Cargill will now work together over coming months to negotiate a lease agreement for the site, while Cargill continues discussions with CBH Group and other parties on the project.

“This is a hugely exciting project for Kwinana and for WA: expanding our local processing capacity, creating local jobs and positioning our state in the clean biofuel market,” WA Premier Roger Cook said in a statement.

“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.

“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.”

Cargill is already a leading global oilseed crusher with plants in Europe, Asia, and the Americas, and it has decades of experience crushing oilseeds in eastern Australia at its facilities in New South Wales and Victoria.

As outlined in a March 6 Grain Central article, indications from a number of parties have pointed to a major expansion in WA’s canola-crushing capacity being likely.

While the size of the plant Cargill is considering building has not come to light, industry sources say it could cost up to $600 million to build.

“Cargill is currently investigating the potential to develop a world-class canola crush plant on the site subject to all necessary approvals and is working closely with the WA Government to move this project forward,” Cargill Australia managing director Zsolt Kocza said.

“Cargill has been in discussions with several parties regarding this potential crush plant facility in Kwinana WA, including CBH Group and how their existing supply chain may be able to support accumulation and export connections for the plant.”

CBH Group chief executive Ben Macnamara said the co-operative was looking forward to continuing discussions with Cargill to assess this opportunity.

“We welcome this development which provides the 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.”

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