Saskatchewan Wheat Pool has sold its interest in a jointly owned grain elevator in Lloydminster to its partner Agricore United.
The pool says the opening of a major ethanol plant by Husky Energy in the border city will dramatically change the economics of operating the 15,600-tonne capacity elevator.
The ethanol plant is expected to consume more than 350,000 tonnes of grain annually.
AU has an exclusive agreement with Husky to supply that tonnage annually to the new plant, which is slated to open in a few months with an annual production capacity of 120 million litres.
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AU officials said taking full ownership of the Lloydminster terminal will help it meet those supply commitments.
The sale is expected to close by Feb. 22. Terms of the transaction were not disclosed.
The terminal was built in 1994 as a joint venture between SWP and Alberta Wheat Pool.
AU assumed its 50 percent interest after the merger between United Grain Growers and Agricore Co-operative, which in turn was created through a merger between AWP and Manitoba Pool Elevators.
The pool said it will maintain its presence in the Lloydminster area through grain handling and agri-products facilities in Unity and North Battleford, marketing representatives in Maidstone and Neilburg and an AgPro Grain marketing office in Vermilion, Alta.
