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Alberta

Alberta announces second waste-to-energy facility near Edmonton to join Central Alberta plant at Innisfail

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This waste-to-energy facility also built by Norway’s Varme Energy will be located in an industrial area outside of Birmingham, UK

With $2.8 million from the industry-funded TIER program, Albertaā€™s government is advancing Canadaā€™s first industrial-scale waste-to-energy facility using technology.

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.

Albertaā€™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 Canadaā€™s first facility that uses carbon capture to turn municipal waste into clean electricity closer to construction.

ā€œAlberta 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 provinceā€™s exceptional geology, workforce and expertise to advance a landfill elimination solution that will reduce emissions and continue Albertaā€™s reputation for delivering clean, secure energy to the world.ā€

Rebecca Schulz, Minister of Environment and Protected Areas

ā€œAlberta 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.ā€

Nathan Neudorf, Minister of Affordability and Utilities

The future facility will be built on Gibson Energy land within the Designated Industrial Zone in Albertaā€™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 Albertaā€™s carbon sequestration hubs. The facility is expected to capture and store about 185,000 tonnes of carbon dioxide annually.

ā€œEmissions 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.

ā€œWe are thrilled at how Varme has been embraced by Alberta. The magnitude of support, encouragement and collaboration weā€™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 Albertaā€™s support demonstrates how Albertaā€™s TIER carbon pricing system is a powerful tool for converting our historical emissions levies into future emissions reductions, modern jobs and economic activity.ā€

Sean Collins, CEO, Varme Energy

Quick facts

  • Varme Energyā€™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.

This is a news release from the Government of Alberta.

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Alberta

Big win for Alberta and Canada: Statement from Premier Smith

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Premier Danielle Smith issued the following statement on the April 2, 2025 U.S. tariff announcement:

ā€œToday was an important win for Canada and Alberta, as it appears the United States has decided to uphold the majority of the free trade agreement (CUSMA) between our two nations. It also appears this will continue to be the case until after the Canadian federal election has concluded and the newly elected Canadian government is able to renegotiate CUSMA with the U.S. administration.

ā€œThis is precisely what I have been advocating for from the U.S. administration for months.

ā€œIt means that the majority of goods sold into the United States from Canada will have no tariffs applied to them, including zero per cent tariffs on energy, minerals, agricultural products, uranium, seafood, potash and host of other Canadian goods.

ā€œThere is still work to be done, of course. Unfortunately, tariffs previously announced by the United States on Canadian automobiles, steel and aluminum have not been removed. The efforts of premiers and the federal government should therefore shift towards removing or significantly reducing these remaining tariffs as we go forward and ensuring affected workers across Canada are generously supported until the situation is resolved.

ā€œI again call on all involved in our national advocacy efforts to focus on diplomacy and persuasion while avoiding unnecessary escalation. Clearly, this strategy has been the most effective to this point.

ā€œAs it appears the worst of this tariff dispute is behind us (though there is still work to be done), it is my sincere hope that we, as Canadians, can abandon the disastrous policies that have made Canada vulnerable to and overly dependent on the United States, fast-track national resource corridors, get out of the way of provincial resource development and turn our country into an independent economic juggernaut and energy superpower.ā€

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Alberta

Energy sector will fuel Alberta economy and Canadaā€™s exports for many years to come

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From the Fraser Institute

By Jock Finlayson

By any measure, Alberta is an energy powerhouseā€”within Canada, but also on a global scale. In 2023, it produced 85 per cent of Canadaā€™s oil and three-fifths of the countryā€™s natural gas. Most of Canadaā€™s oil reserves are in Alberta, along with a majority of natural gas reserves. Alberta is the beating heart of the Canadian energy economy. And energy, in turn, accounts for one-quarter of Canadaā€™s international exports.

Consider some key facts about the provinceā€™s energy landscape, as noted in the Alberta Energy Regulatorā€™s (AER) 2023Ā annual report. Oil and natural gas production continued to rise (on a volume basis) in 2023, on the heels of steady increases over the preceding half decade. However, the dollar value of Albertaā€™s oil and gas production fell in 2023, as the surging prices recorded in 2022 following Russiaā€™s invasion of Ukraine retreated. Capital spending in the provinceā€™s energy sector reached $30 billion in 2023, making it the leading driver of private-sector investment. And completion of the Trans Mountain pipeline expansion project has opened new offshore export avenues for Canadaā€™s oil industry and should boost Albertaā€™s energy production and exports going forward.

In a world striving to address climate change, Albertaā€™s hydrocarbon-heavy energy sector faces challenges. At some point, the world may start to consume less oil and, later, less natural gas (in absolute terms). But such ā€œpeakā€ consumption hasnā€™t arrived yet, nor does it appear imminent. While the demand for certain refined petroleum products is trending down in some advanced economies, particularly in Europe, we should take a broader global perspective when assessing energy demand and supply trends.

Looking at the worldwide picture, Goldman Sachsā€™ 2024 global energy forecast predicts that ā€œoil usage will increase through 2034ā€ thanks to strong demand in emerging markets and growing production of petrochemicals that depend on oil as the principalĀ feedstock. Global demand for natural gas (including LNG) will also continue to increase, particularly since natural gas is the least carbon-intensive fossil fuel and more of it is being traded in the form of liquefied natural gas (LNG).

Against this backdrop, there are reasons to be optimistic about the prospects for Albertaā€™s energy sector, particularly if the federal government dials back some of the economically destructive energy andĀ climate policiesĀ adopted by the lastĀ government. According to the AERā€™s ā€œbase caseā€ forecast, overall energy output will expand over the next 10 years. Oilsands output is projected to grow modestly; natural gas production will also rise, in part due to greater demand for Albertaā€™s upstream gas from LNG operators in British Columbia.

The AERā€™s forecast also points to a positive trajectory for capital spending across the provinceā€™s energy sector. The agency sees annual investment rising from almost $30 billion to $40 billion by 2033. Most of this takes place in the oil and gas industry, but ā€œemergingā€ energy resources and projects aimed at climate mitigation are expected to represent a bigger slice of energy-related capital spending going forward.

Like many other oil and gas producing jurisdictions, Alberta must navigate the bumpy journey to a lower-carbon future. But the world is set to remain dependent on fossil fuels for decades to come. This suggests the energy sector will continue to underpin not only the Alberta economy but also Canadaā€™s export portfolio for the foreseeable future.

Jock Finlayson

Senior Fellow, Fraser Institute
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