Less than three per cent of municipal waste in Canada is currently being converted into energy, and none of these existing projects are capturing and storing their carbon dioxide emissions. With landfills accounting for 23 per cent of methane emissions in Canada, municipalities and corporations across the country are looking for innovative ways to reach their landfill diversion and sustainability targets.
Alberta's government is providing $2.8 million through Emissions Reduction Alberta for a $6.1-million front-end engineering and design study led by Varme Energy. This funding helps get Canada's first facility that uses carbon capture to turn municipal waste into clean electricity closer to construction.
"Alberta is a global leader in carbon capture, utilization and storage technology, and the best place for innovative projects like this one to thrive. Varme Energy is tapping into our province's exceptional geology, workforce and expertise to advance a landfill elimination solution that will reduce emissions and continue Alberta's reputation for delivering clean, secure energy to the world."
Rebecca Schulz, Minister of Environment and Protected Areas
"Alberta is a leader in responsible energy development. I am proud to see our government continue to invest in new, innovative technologies that will help ensure our power grid is affordable, reliable and sustainable for generations to come."
Nathan Neudorf, Minister of Affordability and Utilities
The future facility will be built on Gibson Energy land within the Designated Industrial Zone in Alberta's Industrial Heartland, with operations estimated to begin in 2027. Here, solid waste from municipal landfills will be converted into electricity for the grid, with the captured carbon injected into one of Alberta's carbon sequestration hubs. The facility is expected to capture and store about 185,000 tonnes of carbon dioxide annually.
"Emissions Reduction Alberta is proud to provide provincial funding to this first-in-Canada project. The study is an important first step to realizing a large-scale municipal waste-to-energy facility with carbon capture and storage. This project not only reduces emissions, but also sets a new standard for how we provide clean, reliable energy from waste destined for landfills."
Justin Riemer, CEO, Emissions Reduction Alberta
By incorporating carbon capture into the waste-to-energy process, all of the greenhouse gas emissions that are typically released from a waste-to-energy facility will instead be captured and sequestered underground. This helps reduce methane emissions from waste that would normally decompose at the landfill, and ensures all carbon is captured and stored deep in the earth, creating a carbon-negative system where the process stores more carbon dioxide than it emits.
"We are thrilled at how Varme has been embraced by Alberta. The magnitude of support, encouragement and collaboration we've received from the Government of Alberta, and Albertans at large, has been beyond our expectations. This direct provincial financial support is a significant de-risk that will help bring our project to a positive final investment decision. Emissions Reduction Alberta's support demonstrates how Alberta's TIER carbon pricing system is a powerful tool for converting our historical emissions levies into future emissions reductions, modern jobs and economic activity."
Sean Collins, CEO, Varme Energy
Quick facts
- Varme Energy's front-end engineering and design study is expected to be completed in December 2024 with construction set to begin in 2025.
- In addition to provincial funding support through the Technology Innovation and Emissions Reduction (TIER) program, Varme Energy is working with Gibson Energy, the City of Edmonton and the Canada Growth Fund to advance this project, with the ultimate goal of diverting more than 200,000 tonnes of municipal solid waste away from landfills each year.
- Canada currently processes about 26 million tonnes of municipal solid waste annually.
- Through the Alberta Carbon Trunk Line and Quest carbon capture, utilization and storage projects, Alberta has safely sequestered more than 13.5 million tonnes of carbon dioxide to date, which is equivalent to the emissions from 2.9 million cars per year.
- McKinsey projects that annual global investment in carbon capture, utilization and storage could reach $175 billion by 2035, with the majority of these investments in hard-to-abate sectors and the power sector.
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