27-03-2023
CIB commits $277 million towards biorefinery and Canada’s largest electrolyzer
The Canada Infrastructure Bank (CIB) has concluded the financing on its first project from its low-carbon fuels, carbon capture utilization storage and hydrogen initiative with support for a biorefinery and the country’s largest electrolyzer.
Under the terms of the agreement, the CIB will provide a loan of $277 million to a joint-venture partnership between Shell, Suncor, Proman and the government of Québec that will enable construction of Canada’s largest biorefinery, based on a technology platform developed by Enerkem.
The $1.2 billion facility – known as Varennes Carbon Recycling – will include an electrolyzer which will supply clean hydrogen and oxygen to convert more than 200,000 tonnes of non-recyclable waste and residual biomass into biofuels with a capacity of up to 130 million litres annually.
The project is expected to create more than 500 jobs at the peak of construction and about 100 permanent jobs once operational.
CIB funding supports Quebec’s leadership in renewable energy and innovation and Canada’s aim to be net zero by 2050. The CIB loan aims to provide financing to a relatively emerging industry with upside.
The project will be using Enerkem’s proprietary thermochemical process. The carbon recycling facility is expected to cut more than 170,000 tonnes of greenhouse gas emissions annually and 4.25 million tonnes over the project’s 25-year lifespan. The annual reduction is equivalent to taking 50,000 passenger vehicles off the road.
The Canada Infrastructure Bank is pleased to have acted quickly on its expanded role to support transformational efforts to accelerate Canadas transition to a low-carbon economy. Converting waste and residual biomass into clean hydrogen is the CIBs latest effort helping the country reach net zero by 2050 and represents its first investment in low-carbon fuels.
- Ehren Cory, CEO, Canada Infrastructure Bank
The largest biorefinery in Canada will open its doors in Varennes, with the help of a loan from the Canada Infrastructure Bank. By supporting innovation here at home, the Canada Infrastructure Bank is giving Canada more tools to continue the fight against climate change, creating good jobs and generating wealth, here in Quebec.
- The Honourable Pablo Rodriguez, Minister of Canadian Heritage and Quebec Lieutenant, on behalf of the Honourable Dominic LeBlanc, Minister of Intergovernmental Affairs, Infrastructure and Communities
Clean fuels are an essential part of the clean technology mix in a net-zero world. While electrification will be a chosen route in some sectors, clean fuels will also play a very significant role going forward. Projects like this will accelerate important work to help Canada achieve its ambitious environmental and economic objectives I look forward to continuing to work with the Canada Infrastructure Bank and private sector partners to produce the clean hydrogen the world needs.
- Jonathan Wilkinson, Minister of Natural Resources Canada
We are pleased the Canada Infrastructure Bank has agreed to support Varennes Carbon Recycling and charted a path forward for this important project. The transition to a lower carbon energy system requires collaboration that brings technology, expertise and governments together with industry for society to achieve its climate ambitions.
- Andrew Murfin, General Manager New Fuels, Shell
Suncor is proud to be a partner in Varennes Carbon Recycling, a project that will divert non-recyclable waste from landfills and turn it into renewable methanol for use in marine transportation and the production of circular plastics. We sincerely appreciate the financial support provided by the Canadian and Quebec governments, which will enable this project to become one of the largest producers of renewable methanol in the world.
- Mark Townley, Senior Vice President, Supply, Trading & Optimization, Suncor
Proman is excited to contribute our marketing, logistics, and operational experience to Varennes Carbon Recycling, and we look forward to working with all the project partners to make this innovative waste-to-low carbon fuels plant a great success and contribute towards meeting global sustainability targets.
- David Cassidy, CEO, Proman
We are pleased with the support of the CIB to Varennes Carbon Recycling that now combines the electrolyzer with the biorefinery into one single project. CIBs participation enables this first-of-a-kind, fully commercial project, based on Enerkems waste to methanol technology platform. This sends a powerful signal to investors and the biofuels and circular chemicals sectors.
- Dominique Boies, CEO of Enerkem
News Category:
-
Neste successfully concludes its first processing run with pyrolysis oil from discarded tyres
In its efforts to advance chemical recycling, Neste has successfully conducted its first processing trial run with a new challenging raw material, liquefied discarded ...
23-04-2024
-
Technip Energies awarded a substantial contract for TotalEnergies and OQ’s Marsa LNG project in Oman
Technip Energies has been awarded a substantial1 contract by TotalEnergies and OQ for the Marsa LNG bunkering project located in Sohar, Oman. The contract covers ...
23-04-2024
-
Topsoe announces plans for new US electrolyser factory for clean hydrogen
Topsoe, a global leader in carbon emission reduction technologies, announced plans to build a cutting-edge factory in Chesterfield, Virginia. The factory will manufacture ...
23-04-2024
-
Technip Energies and Anellotech to jointly develop sustainable plastics recycling
Technip Energies and Anellotech Inc, today announced they have signed a global joint development agreement to work cooperatively to further develop and then license Anellotech’s ...
22-04-2024
-
Cepsa and Evos join up for green methanol storage in Spain and the Netherlands
Spanish energy company Cepsa has signed an agreement with Evos, a leading liquid energy and chemical storage company with hubs in strategic locations across Europe, to ...
18-04-2024
-
Start up of the worlds first large scale electrically heated steam cracking furnace
BASF, SABIC, and Linde have inaugurated the world’s first demonstration plant for large-scale electrically heated steam cracking furnaces. Following three years of ...
18-04-2024
-
Fortescue selects Green ammonia technology from KBR
KBR has announced it has signed a contract to provide its green ammonia technology, K-GreeN, for Fortescue’s Holmaneset green energy project in Norway. Under the terms ...
18-04-2024
-
Avantium and TNO partner to manufacture electrolyser test stations for green hydrogen production
Avantium N.V., a leading company in renewable and circular polymer materials, has announced that its subsidiary Avantium R&D Solutions has signed a partnership agreement ...
18-04-2024
-
Linde to increase green hydrogen production in Brazil
Linde announced today its subsidiary White Martins will build, own and operate a second electrolyser to produce green hydrogen for the southeast region of Brazil. The ...
18-04-2024
-
Boeing makes its largest purchase of blended SAF
Boeing has agreed to purchase 7.5 million gallons of blended Neste MY Sustainable Aviation Fuel in 2024 to support its U.S. Commercial Airplanes business operations ...
16-04-2024