A $400 million waste-to-energy carbon capture facility in Edmonton is at risk of cancellation after Alberta and the federal government agreed to a slower, lower carbon price trajectory. The project by Varme Energy would convert landfill waste into electricity and capture CO2 for underground storage, but the revised carbon price rising to only $130 per tonne by 2040 instead of $170 per tonne by 2030 makes the economics unworkable. The company says operating costs of $118 per tonne exceed expected carbon credit revenue under the new policy. Other carbon capture developers face similar pressure. Torchlight's $2 billion project near Hinton, Alberta, designed to store 1.6 million tonnes of CO2 annually, is also described as not viable under the current framework. Industry advocates are calling for federal policy changes such as access to international carbon markets or integration with Canada's Clean Fuel Regulations to improve credit pricing. Without adjustments, Varme Energy may cancel the project by fall 2026.
