In December 2020, Enerkem announced the construction of a CAD 875 million biofuels plant in Varennes with a group of strategic partners including Shell, as lead investor, as well as Suncor and Proman, and Hydro-Québec, which will supply renewable hydrogen and oxygen, and with the support of the governments of Quebec and Canada.

Varennes Carbon Recycling (VCR), will produce biofuels and renewable chemicals made from non-recyclable residual materials as well as wood waste. The plant will leverage green hydrogen and oxygen produced through electrolysis, transforming Quebec’s excess hydroelectricity capacity into value-added biofuels and renewable chemicals.

Enerkem’s proprietary thermochemical process will enable the recycling of the carbon and hydrogen contained in non-recyclable waste and wood waste currently landfilled or burned.

Development of the VCR project was initially announced by Enerkem and its partners in late 2020. Construction on the project kicked off in 2021. Commercial operations are currently expected to begin in 2025.

In addition to providing a second life to waste material, VRC will expand the overall supply of alternative fuels and increase biofuel production in Québec increasing its leadership in renewable energy and innovation. Hydro-Québec has announced plans to build a 90MW electrolyzer facility to supply green hydrogen and oxygen to the proposed Varennes plant.