Artist’s impression of the proposed oilseed crushing plant with view from Patterson Road. Source: Rockingham Council
PUBLIC consultation has opened on Cargill’s plans to construct a canola-crushing plant, named Project Crux, in Western Australia’s City of Rockingham, next to CBH’s Kwinana Grain Terminal.
Development plans released as part of the consultation reveal Cargill aims to build a plant that can crush up to 3000 tonnes per day, or up to about 1.1Mt per annum.
This is the first significant update to come to light on the plant since Cargill announced in March 2024 it was in exclusive lease negotiations with the WA Government about securing the site.
There was speculation the plant could cost up to $600M to build, with CBH tipped to play a role due to its proposed location.
Planning documents show the facility would include seed silos, and oil storage and loading infrastructure linked to the jetty, along with wastewater treatment, firefighting systems, weighbridges, offices, a laboratory, maintenance facilities, and truck and car parking.
Documents lodged with the City of Rockingham indicate Cargill met with the local government authority as early as October 2023 to introduce the project, and met with DevelopmentWA in March 2024 to “discuss core lease requirements following a grant of preferred lease holder status”.
The company will lease the site for a 60-year term to construct and operate the development.
CBH, BP involvement
Other than consulting state and local government, documents indicated that Cargill had some or would have contact with neighbouring CBH and BP.
“Cargill and CBH will be entering into a joint venture for the Crux project,” the document said.
“Regular consultation with CBH is conducted to ensure a co-ordinated development approach with the terminal and its existing operations.
“Cargill undertakes regular and [on-going] consultation with BP to discuss opportunities related to the supply of oil product feedstock for a proposed BP biofuel site.”
A CBH spokesperson said the company had yet to decide whether it would enter a joint venture with Cargill on Project Crux.
“CBH is continuing to engage with Cargill to explore opportunities to utilise our supply chain to facilitate a canola crush plant and ensure that if it does go ahead it creates and returns value to growers,” the spokesperson said.
“CBH has not made a decision on this opportunity as we are still in discussions with Cargill.”
WA crush opportunities
The Cargill project is the second canola-crushing plant proposed for WA to come to light in recent months, following the Infrastructure Asset Group seeking to construct a 1Mt facility in the state’s Great Southern region.
Together the projects could significantly increase WA’s crush capacity, which currently sits at roughly 60,000t, shared by GrainCorp’s Pinjarra plant and Aus Oils at Kojonup.
WA has long been seen as a natural location to expand the nation’s canola-crushing capacity, given it grows more than half the Australian crop.
“Western Australia typically accounts for over 50 percent of Australian grain exports due to its strategic location making it viable for transporting products to key clients both domestically and internationally in the Food, Feed and Fuel markets,” the planning document said.
“Local canola production continues to increase and with an insignificant domestic crush market there is an abundant and increasing exportable surplus.”
According to GIWA’s December Crop report, there could be enough canola to accommodate the maximum capacities of both facilities with WA estimated to produce a total of 4.17Mt of canola in 2025-26.
Of that total, 1.45Mt sits within the Kwinana port zone – close to the proposed Cargill site – while a further 1.25Mt in the Albany Zone, home to the proposed IAG facility.
Current crush capacity
A US Department of Agriculture Foreign Agricultural Service report published April last year estimated Australia’s canola crush would rise to 1.3Mt in 2025-26, up from 1.1Mt in 2024-25.
“The expansion of canola production in recent years, coupled with high global canola oil prices in 2021 and 2022, encouraged existing processors to increase their investment in Australia’s canola crushing sector,” the report said.
“These investments have expanded the country’s crushing capacity and will impact production in MY 2025-26.”
The report noted the lack of WA’s capacity, commenting that the state contributed about 10pc to Australia’s total canola crush.
“This is mainly due to the higher demand for canola meal in the eastern states, holding the majority of beef feedlots, dairy farms, swine, and poultry operations.”
While flagging potential new facilities in WA, the report was downbeat about their likelihood of proceeding.
“Over the past two years, several existing processors have announced plans to establish new crushing facilities in Western Australia.
“However, two companies have withdrawn their interest, while another has secured a site but placed the project on hold.
“Their proposed project has a crushing capacity of around 1.3Mt almost double Australia’s current capacity.
“However, all these projects are contingent on federal government policy support for biofuels, which has yet to materialize.”
In the nine months since, the policy landscape has changed, with the federal government taking a more supportive stance on biofuels and signalling further incentives.
These include a $1.1 billion commitment from the Federal Government to support the production of low-carbon liquid fuels through the Cleaner Fuels Program.
Thank you to ALL our Western Australian farmers for their hard work and forward thinking about our futures in keeping Western Australia moving. Without farmers you and I cannot enjoy our daily meal, drive our energy to greater power of thinking. THANK EVERY FARMER IN WA