Canada Growth Fund Inc. (CGF), Gibson Energy Inc., and Varme Energy Inc. have partnered strategically to develop Canada’s first waste-to-energy facility featuring integrated carbon capture technology. This innovative project aims to process 200,000 tonnes of municipal solid waste annually, diverting residential garbage from landfills and advancing carbon-negative electricity production.
The planned waste-to-energy facility will be constructed on Gibson Energy’s land in the Heartland area, utilizing carbon capture and storage (CCS) technology to incinerate municipal waste. The facility will generate carbon-negative electricity, positioning it as a pioneering project in both waste management and renewable energy sectors. The partnership has initiated a front-end engineering and design (FEED) study, with a final investment decision (FID) expected in early 2025 and commissioning targeted for 2027.
The project is aligned to achieve a net-zero electricity grid across Canada. By integrating waste-to-energy with CCS, the project showcases significant potential for replication in municipalities nationwide and sets a precedent for exporting Canadian expertise globally. The project also supports the government’s priority of rapidly reducing methane emissions, a crucial step in mitigating near-term climate impacts.
Under the terms of the partnership, Gibson Energy, CGF, and Varme Energy will hold 50 percent, 40 percent, and 10 percent ownership interests, respectively, upon reaching a positive FID. This collaboration exemplifies a concerted effort to advance the flagship Heartland project and enhance local waste diversion capabilities. Additionally, CGF will provide a carbon price assurance mechanism through a Carbon Credit Offtake (CCO) agreement, purchasing up to 200,000 tons per annum of compliance-grade carbon credits generated by the project at an initial price of $85 per ton for 15 years.
This CCO structure is designed to de-risk and accelerate private CCS investment by ensuring revenue certainty for Canadian projects. It also enables the project to sell up to 100,000 tonnes of carbon emission reductions per annum into alternative carbon markets, including Bioenergy with CCS (BECCS) atmospheric carbon removal credits. This innovative financing mechanism secures the project’s financial stability and enhances its attractiveness to leading corporations and brands seeking high-value carbon dioxide removal credits.
The waste-to-energy project stands to contribute to environmental sustainability by diverting substantial amounts of waste from landfills and reducing methane emissions. The generation of carbon-negative electricity will also increase Alberta’s clean energy supply, further supporting the province’s and the nation’s climate goals. By fostering the development of cutting-edge waste management technologies, the partnership positions Canada at the forefront of the global green energy transition.
This initiative will leverage strategic partnerships and innovative technologies to address pressing environmental challenges. As the project progresses, it promises to serve as a model for similar endeavors across Canada and potentially on an international scale.
