Edmonton carbon capture project faces possible cancellation after Alberta carbon tax changes
Edmonton waste-to-energy project faces cancellation after carbon price cuts See why Varme Energy says the revised policy could derail financing and delay the facility
A proposed $400 million wastetoenergy facility in Edmonton is at risk of being cancelled after Alberta and Ottawa changed the industrial carbon price path, according to developer Varme Energy.
The project, which would convert landfill waste into electricity and capture emissions for underground storage, had been designed around a higher carbon price that would have improved the value of future carbon credits. Under the revised agreement, the price is now set to rise more slowly and reach a lower level, which the company says weakens the project’s financial case.
Varme Energy says it already has agreements, permits and some government support in place, but it may have to decide this fall whether to proceed. Other carbon capture developers in Canada are also warning that the new policy outlook could make similar projects harder to finance.