State Government and Cargill Australia negotiating lease of Kwinana land for world-class canola crush plant

The State Government has revealed it is negotiating with US-owned company Cargill Australia to build a canola crush plant in Kwinana. The potential plant, touted as world-class and subject to regulatory approvals, is proposed for land adjacent to the CBH Kwinana Grain Terminal on Rockingham Beach Road. According to the State Government, the project would service the domestic and export oil and meal market, utilise locally grown canola and expand WA’s processing capacity for canola oil. It also said the facility would supply the emerging biofuel markets in Australia and around the world, providing a clean energy source for the future. The State Government and Cargill are negotiating a lease agreement for the site, while the company continues discussions with CBH Group and other parties on the project. Premier Roger Cook said he was keen for the plant to proceed. “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,” he said. “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 Australia managing director Zsolt Kocza said the company had been in discussions with several parties regarding the potential crush plant, including with CBH Group about how its existing supply chain could support accumulation and export connections. “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,” Mr Kocza said. CBH chief executive Ben Macnamara welcomed the development next to one of the co-operative’s “critical supply chain assets”. “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. “We’re looking forward to continuing discussions with Cargill to assess this opportunity.” It follows BP firming up its plans for its Kwinana Renewable Fuels biorefinery on Mason Road in Kwinana Beach, as part of its larger transformation of its old refinery into the Kwinana Energy Hub.