Speculation is mounting in Western Australia's agricultural sector as details emerge of a potential half-billion-dollar canola processing plant in East Rockingham. American agribusiness giant Cargill has publicly released development plans for the major facility, with documents pointing to a joint venture with the state's grain grower cooperative, CBH.
Crux Project Details and Scale
Documents filed by Cargill with the Town of Rockingham this week outline the proposal for a refinery known as the Crux project. The planned factory is set to be a game-changer for the local industry, with a proposed capacity to produce 1.1 million tonnes of seed oil every year. The total investment is pegged at a substantial $500 million.
Engineering firm Ramboll, which authored the submission, explicitly stated that "Cargill and CBH will be entering into a joint venture for the Crux project." The documents also note that regular consultations with CBH are ongoing to coordinate the development with the cooperative's existing grain export terminal operations, where Cargill intends to build the new facility.
Strategic Advantages and Market Race
The proposed joint venture offers significant strategic benefits. For Cargill, positioning the refinery next to CBH's East Rockingham grain export terminal provides direct access to a world-class supply chain for canola seed. For WA growers and the state's economy, the plant promises to add substantial value locally, moving beyond the export of raw commodities.
A key aim is to diversify canola demand away from its primary market in Europe, where roughly 60% of canola oil is used for biofuels. The submission also reveals that talks are underway to potentially supply canola oil to BP's stalled sustainable aviation fuel plant in Kwinana.
This development puts the CBH-Cargill partnership ahead in a competitive race. Sydney-based handler GrainCorp has also been sizing up a similarly large-scale oilseed refinery project for the west coast and is conducting its own feasibility work.
Industry Impact and Official Silence
The scale of the proposed refineries by both CBH-Cargill and GrainCorp would far exceed the two small refineries currently operating in Western Australia. This comes as the state's canola industry shows strong production, with more than 4 million tonnes grown in the 2025-26 season. The majority of this crop is currently shipped overseas to markets in Europe, Japan, and the Middle East.
Despite the clear details in the public submission, both companies involved are maintaining silence. CBH did not comment on whether a formal agreement has been signed, and Cargill has also declined to make an official statement. This quiet approach has left the industry watching closely for an official announcement that would solidify one of the biggest value-adding projects in WA agriculture in recent years.
