Specialized crushing plant on hold

Tuesday, November 24, 2009

By PATRICIA GROTENHUIS

Development of a soybean crushing plant in southwestern Ontario will have to wait until market conditions improve, says a representative of one of the companies involved.

Jim Campbell, Agris Co-op general manager, says the project was moving well until the recession hit, slowing biofuel demand.

Agris and Suncor have proposed to build a $110 million plant in the Lambton-Kent area. The plant would process corn and soybean oil with its key function being extracting oil from corn germ to streamline ethanol production.

Campbell says demand for the facility has to be demonstrated before the project will go ahead.  Government support is also needed. 

“We don’t want the government to forget farm diversification support as they enter a deficit,” says Campbell.

Research is showing soybeans can make many biomaterials, foams and lubricants. 

“We’re cautious, but believe consumers will use healthier and more renewable products,” says Campbell.

The companies have received funding to study the viability of the facility from federal and provincial government programs as well as from third party sources, including the Ontario Soybean Growers.

Dale Petrie, General Manager of Ontario Soybean Growers and Director Strategic Development and Innovation of Grain Farmers of Ontario, says he’s hopeful other initiatives will help make the crushing plant a reality.

In October, the Ontario Soybean Growers pledged $500,000 over five years to the establishment of a new bio-materials research program at Trent University in Peterborough.

Seed breeders are developing new soybean varieties that contain high oleic oils, which aid in lowering cholesterol; Omega 3 fatty acids, which improve brain function; and low linolenic oils, which have lower trans fats than traditional oils; among others, he adds.

Petrie says a specialty crushing plant would be needed because the two crushing plants currently in Ontario, ADM and Bunge, are high volume and cannot switch between varieties while still keeping them separate.

“If we can segregate beans the value will go up,” says Petrie. BF