A new biodiesel plant, which would bring about two billion dollars in total economic impact to the Regina area, is one step closer to being built after an agreement was reached between the city and Federated Co-Op on a land sale

The Executive Committee voted 10-1 in favour of the land deal.

City administration recommended sale of the land, which is about 222 hectares and located near the refinery, at a cost of just under $5.5 million.

Mayor Sandra Masters says the facility will be big for the local economy. “We know that we have million of acres of Co-op production and being able to add to that Co-op here and add to it. and supply services that are sustainable, not just for food but biodiesel, these are enormously significant for the transformation of our local economy.”

She also noted that this plant will help in the city’s desire to have more sustainable industries. “I think that transition from fossil fuel into green fuel using canola oil for biodiesel that lends itself into back into supplying agricultural producers with a green option for powering their machinery.”

Federated Co-op’s Patrick Bergermann says the plant should be operating by 2027, he said while this is an aggressive timeline they are looking forward to meeting that target.

It is expected the deal will be approved by council at next week’s meeting.