Alberta landfill waste carbon capture project inks deal with Canada Growth Fund
Alberta landfill waste carbon capture project inks deal with Canada Growth Fund The Globe and Mail
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Company Secures Carbon Price Backstop Contract for Waste-to-Energy Project
The Sustainable Development Goals (SDGs)
- Goal 7: Affordable and Clean Energy
- Goal 9: Industry, Innovation, and Infrastructure
- Goal 11: Sustainable Cities and Communities
- Goal 13: Climate Action
- Goal 17: Partnerships for the Goals
Introduction
A company in Canada has secured a carbon price backstop contract through the Canada Growth Fund for its waste-to-energy project. The project aims to use carbon capture and storage technology to create clean electricity from landfill waste, aligning with several Sustainable Development Goals (SDGs) including Goal 7 (Affordable and Clean Energy), Goal 9 (Industry, Innovation, and Infrastructure), Goal 11 (Sustainable Cities and Communities), Goal 13 (Climate Action), and Goal 17 (Partnerships for the Goals).
Project Details
The waste-to-energy facility, developed by Calgary-based Gibson Energy Inc., will divert solid waste from the City of Edmonton’s landfill and incinerate it to generate electricity. The facility will also utilize carbon capture technology to trap greenhouse gas emissions, preventing them from entering the atmosphere.
Carbon Price Backstop Contract
Gibson Energy Inc. has reached a deal with the Canada Growth Fund, a $15-billion federal fund, to accelerate the development of the waste-to-energy project. Under the agreement, Gibson will own 50% of the project, while the Canada Growth Fund will have a 40% stake. Varme Energy, a subsidiary of Varme Energy AS, will own the remaining 10% stake. The contract includes a carbon price assurance mechanism, where the Canada Growth Fund commits to purchasing 200,000 tonnes of carbon credits generated by the project annually for a 15-year term, at an initial price of $85 per tonne.
Benefits of Carbon Capture and Storage
Carbon capture and storage technology reduces the risk associated with investing in emissions-reducing technology. It allows companies to lower their carbon tax expenses by reducing overall emissions and generate carbon credits that can be sold to offset other polluters’ emissions. This aligns with Goal 13 (Climate Action) and encourages the adoption of sustainable practices in industries.
The Canada Growth Fund
The Canada Growth Fund was established by the federal government to support private investors in new technologies and decarbonization projects. The Gibson Energy project is the fund’s fourth investment and the second project to receive a carbon contract for difference. The fund aims to unlock projects that would not be feasible with only private-sector capital, contributing to Goal 17 (Partnerships for the Goals).
Conclusion
Gibson Energy Inc. and its project partners are expected to make a final investment decision on the waste-to-energy project early next year, with a target start date in 2027. The project aligns with Gibson’s commitment to achieving net-zero emissions by 2050 and presents an opportunity for growth in the energy transition space. This project demonstrates the potential of waste-to-energy and carbon capture technologies in advancing sustainable development and addressing multiple SDGs.
Source: theglobeandmail.com
