A year ago at this time, the people of Craik, Sask., were excited about the prospect of a new business coming to town.
A value-added processing company that would turn waste agricultural products into a salable commodity was getting ready to set up shop in their community, mid-way between Saskatoon and Regina.
It’s still going to happen, and they’re still excited about it, but there’s been a big change in plans.
A different company is coming to town.
A hemp and flax fibre processing firm called Naturally Advantaged Technologies (NAT) was originally going to build a facility in Craik.
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The deal fell through, and now it’s a renewable energy developer called Titan Clean Energy Projects, based in Saskatoon, that is setting up in Craik.
The firm has already shipped some of its processing equipment to the town and hopes to be operating “as soon as possible,” said president and chief executive officer Jamie Bakos.
The company uses technology such as thermal extrusion and pyrolysis to turn biomass waste products like wood chips, oat hulls and sawdust into dense, bio-based, charcoal-like heating cubes.
The processing also produces bio-char, bio-oil and synthetic gas and creates heat, which can be used to generate electricity.
Titan produces and sells a variety of products, including briquettes as a coal replacement for industrial facilities such as greenhouses, Maratherm fireplace logs and Mayan Gold soil additive. It also plans to market a peat moss substitute.
The company has been in business since 2006 and employs about 10 people. Once it’s fully established in Craik, that number could double to around 20 jobs.
Bakos said the company plans to build a number of facilities in Saskatchewan.
For Craik mayor Rod Haugerud, the arrival of Titan turned what could have been bad news for the community into good news.
“One stepped out and pretty quickly the other stepped in,” he said. “It all just fell into place.”
Craik has already developed a reputation as a green community, with a well-publicized Eco-Centre, including a restaurant and meeting rooms for environmentally related conferences, an Eco-village, a golf course and a campground.
Haugerud said either company would have been a good fit with that philosophy.
This tale of two companies dates back to 2004, when NAT, known then as Hemptown, expressed interest in locating in Craik, given the potential for large volumes of flax and hemp to be produced in the area.
In July of that year, the company received 80 acres of industrial property for development of a processing mill, at a cost of $1. In return it agreed to have a facility in place within three years.
In June 2007 the company received a one-year extension.
In January 2008, NAT issued a news release confirming its intention to begin building at Craik that year and process fibre using a technology called Crailar, named after the town. The technology, developed with the National Research Council, speeds the processing of hemp fibre into a soft flexible product that could compete with cotton and other fibres. The plant would have the capacity to produce 52 million kilograms of feedstock fibre per year.
The company undertook ground engineering work, completed all the required architectural and engineering plans and appeared to be well on its way.
Two-thirds of the funding was in place and all that was needed was financial support from the provincial government.
So it was a shock to many when in September 2008, NAT announced it had abandoned its plans.
Haugerud said the town and rural municipality tired of waiting for NAT to complete its financing. They cancelled the contract and took back the land.
Titan contacted the town within two months and after a few meetings, the two sides struck a deal for the company to locate in Craik on the same land.
“I tend to believe things happen for a reason,” Haugerud said.
“In this case, everything just came together after we got the property back.”
Meanwhile, NAT now plans to build its plant near Vegreville, Alta.
NAT chief operating officer Jason Finnis made no bones about what was behind his company’s decision to move from Saskatchewan to Alberta.
The company had secured about two-thirds of its funding from private sources and a federal government program and then went to the provincial government.
Finnis figured an outside business looking to set up in a rural area and add value for local farmers would receive an enthusiastic reception.
“We asked them to provide us possibly with the remaining 30 percent, or at least support us financially in any way they could,” Finnis said.
“The response I got was a flat-out no. No one was interested in helping our processing facility to enter Craik. It was shocking to me.”
Instead, Finnis said he was advised to seek private venture capital to complete his financing.
He said NAT wasn’t interested in that. It wanted to establish a long-term partnership with the province and eventually build a number of processing facilities there.
Despite his disappointment, Finnis said the company hasn’t given up on Craik. A lot of farmers in the area grow flax and hemp and need a market for their straw.
“We absolutely plan on coming back to Craik down the road,” he said.
That would be fine with Haugerud, who said there are no hard feelings from the failed venture.
“If in the future Hemptown or NAT get some money and want to come back to Craik, we’ll definitely find a place for them,” he said.
