By Nia Williams
(Reuters) – The Canada Growth Fund, a federal clean technology financing agency, signed its second deal to counter carbon prices on Tuesday with a proposed facility in Alberta that would convert landfill waste into electricity and capture the resulting carbon emissions.
CONTEXT
The proposed waste-to-energy facility, located near Edmonton and the first of its kind in Canada, would be a partnership between Calgary-based Gibson Energy, the CGF and Varme Energy Inc. It would have a capacity to burn 200,000 tons of waste per year. produce municipal solid waste and electricity.
A final investment decision is expected in early 2025 and commissioning is expected to start in 2027.
BY THE NUMBERS
If the facility goes ahead, the CGF will provide carbon price certainty through an agreement, known as Carbon Credit Offtake, to purchase up to 200,000 tonnes of carbon credits generated by the project annually at an initial price of C$85 ($61.80) per tonne. for a term of 15 years.
WHY IT’S IMPORTANT
Canada has been working on ways to provide carbon price certainty for companies looking to invest in carbon capture and storage (CCS) technology to reduce their emissions.
Carbon credit offtake agreements guarantee the price companies receive for captured carbon, which they say helps them reduce the risk of investing in new projects.
The energy sector has been waiting for the federal government to announce more carbon purchase agreements after signing an initial agreement with Calgary-based Entropy in December.
KEY QUOTES
“Integrated waste-to-energy and carbon capture and storage have significant potential to be replicated in municipalities across Canada and position Canada to export this expertise globally,” the project’s partners said in a press release .
($1 = 1.3753 Canadian dollars)
(Reporting by Nia Williams in British Columbia; Editing by David Gregorio)
