Canada Growth Fund Inc., Gibson Energy Inc. , and Varme Energy Inc. have formed a partnership to develop a waste-to-energy facility with carbon capture technology in the Heartland-area, in Ontario, Canada.

The partnership was announced in June 2024.

Pursuant to the terms of the partnership, should the project reach a positive FID, Gibson, CGF and Varme would have a 50 percent, 40 percent and 10 percent ownership interest, respectively.

The project would be located on Gibson land. It would have the capability to process 200,000 tonnes per annum of municipal solid waste. Such waste would be received pursuant to a 15-year contract that has been entered into by Varme and the City of Edmonton.

The waste-to-energy facility would be constructed by the partnership and operated by Gibson. It would have integrated carbon capture equipment enabling the project to incinerate municipal solid waste and produce carbon-negative electricity.

A front-end engineering and design study is underway, and a final investment decision by the partnership is planned in early 2025, with commissioning targeted in 2027.

In addition to its ownership stake, the Canada Growth Fund would provide a carbon price assurance mechanism in the form of a Carbon Credit Offtake to purchase up to 200,000 tonnes per annum of compliance grade carbon credits generated by the project at an initial price of $85 per tonne for a term of 15 years. The project would retain the ability to sell up to 100,000 tonnes per annum of carbon emission reductions into alternative carbon markets, including as bioenergy with CCS atmospheric carbon removal credits.