A shovel-ready $400 million facility in Edmonton that would convert landfill waste into electricity and capture the carbon underground is at risk of cancellation. The project by Varme Energy was designed to sell carbon credits at the previous federal carbon price trajectory, which would have reached $170 per tonne by 2030. The recent deal between Prime Minister Mark Carney and Alberta Premier Danielle Smith caps the price at $130 per tonne by 2040, making the project financially unviable according to the developer. The project already has agreements with the City of Edmonton, provincial permits, and some federal support from the Canada Growth Fund guaranteeing a minimum of $85 per tonne for credits. But the operating cost is around $118 per tonne, leaving a gap that the lower carbon price cannot close. Varme Energy's CEO Sean Collins says without further policy changes the company will likely cancel the project this fall. Other carbon capture developers in Canada face similar pressure. Torchlight, a Nova Scotia bioenergy developer, says the new price schedule makes virtually every carbon capture and storage project in Canada not viable. The sector is watching for additional policy details, including how credits are calculated and whether companies can sell into alternative markets like the U.S. or through Canada's Clean Fuel Regulations to get better prices.
