New Funding and Collaborations to Propel Edmonton’s Renewable Energy Future
Varme Energy has announced a partnership with Gibson Energy and the Canada Growth Fund to advance its planned waste-to-energy project in Edmonton. The facility will be located on Gibson Energy-owned land in Strathcona County within Alberta’s Industrial Heartland. This project will also benefit from financial backing by the Canada Growth Fund.
Groundbreaking Carbon Credit Agreement
The Canada Growth Fund has committed to a carbon price assurance, agreeing to purchase 200,000 tonnes of carbon credits annually at $85 per tonne for 15 years. This marks one of Canada’s largest agreements and the first contract for differences in Edmonton. The agreement allows Varme Energy to resell up to half of the generated carbon credits to other corporations aiming to meet sustainability targets. This pioneering agreement de-risks private investment in carbon capture projects and attracts international investment.
Significant Milestone Towards Final Investment Decision
Varme Energy, a subsidiary of Norway’s Green Transition Holdings, announced its Edmonton expansion in 2022. Last year, it secured a 15-year agreement with the City of Edmonton to use 150,000 tonnes of municipal waste as feedstock for the waste-to-energy facility. This new agreement with the Canada Growth Fund and Gibson Energy is a crucial step toward the project’s Final Investment Decision (FID).
Projected Economic and Environmental Impact
The project is expected to reach FID within a year and be operational by late 2027. Construction will create over 250 jobs over 2.5 years, with 30 full-time operational positions thereafter. Sean Collins, CEO of Varme Energy, highlighted the support from various partners, emphasizing the project’s role in advancing the region’s renewable energy and carbon capture capabilities.
Regional Leaders Celebrate the Initiative
Mayor Rod Frank of Strathcona County expressed excitement about hosting the innovative waste-to-energy project, noting its benefits for economic diversification and environmental sustainability. Mark Plamondon, Executive Director of Alberta’s Industrial Heartland Association, celebrated the carbon credit agreement as a watershed moment for decarbonization efforts in the region. Malcolm Bruce, CEO of Edmonton Global, lauded Varme Energy’s decision to headquarter in Edmonton, underscoring the project’s significance in the global energy transition.
Source：businesswire.com
