CBH has confirmed it has not yet finalised a deal with US agribusiness giant Cargill to back a $500 million canola refinery in East Rockingham, amid speculation an agreement is imminent.
Cargill released plans for the factory, which would produce 1.1 million tonnes of seed oil annually, aiming to boost local value-adding and diversify canola demand away from Europe.
Documents submitted to the City of Rockingham show the companies intend to collaborate through a joint venture, named Crux, and are in talks to supply BP's stalled sustainable aviation fuel project in Kwinana.
"Cargill and CBH will be entering into a joint venture for the Crux project," the submission, prepared by engineers Ramboll, said. "Regular consultation with CBH is conducted to ensure a co-ordinated development approach with the [grain export] terminal and its existing operations."
CBH said it had not made a final decision as of Jan. 15. "CBH is continuing to engage with Cargill to explore opportunities to utilise our supply chain and ensure that if it proceeds, it creates value for growers," a spokesperson said.
The move positions the joint venture ahead of GrainCorp, which is also evaluating a similarly sized west coast refinery.
Currently, WA produces over 4 million tonnes of canola annually, most exported overseas, with Europe using around 60% for biofuels.