Carbon Direct, Varme Energy Partner on Canadas First Waste-to-Energy with Carbon Capture Project
3 minute readPublished: Wednesday, November 5, 2025 at 11:55 am
Canada to Launch First Waste-to-Energy Carbon Capture Project
A groundbreaking partnership between Carbon Direct and Varme Energy is set to bring Canada's first waste-to-energy project with integrated carbon capture and storage to fruition. The project, located in Alberta, will transform municipal waste into clean energy while permanently storing captured carbon underground. The facility is designed to divert approximately 205,000 tonnes of municipal waste annually and capture over 130,000 tonnes of carbon dioxide (CO) for permanent sequestration. Commercial operations are targeted for 2029, with credit deliveries expected to begin shortly before 2030.
The project will leverage Alberta's existing industrial infrastructure, including pipeline and sequestration hubs, to reduce capital intensity. Over its 25-year operational life, the facility is expected to divert over 5 million tonnes of waste from landfills, permanently store 3.2 million tonnes of CO, and deliver roughly 7 megawatts of firm, low-carbon electricity to the grid.
A key element of the project is Alberta's regulatory framework, which assigns long-term liability for CO storage to the provincial government. This approach reinforces the durability and confidence in the carbon credits generated by the project. The project aims to provide high-quality bioenergy with carbon capture and storage (BECCS) credits to the market, appealing to corporations seeking verifiable, durable removals aligned with science-based net-zero pathways.
The collaboration aims to provide a replicable template for other regions seeking to decarbonize existing industrial hubs. It underscores the shift from voluntary offsets to engineered removals that meet corporate and investor scrutiny.
BNN's Perspective: This project represents a significant step forward in Canada's commitment to reducing carbon emissions. The integration of waste management, renewable energy, and carbon capture, coupled with strong regulatory oversight, sets a positive precedent for future projects. While the project faces execution challenges, its transparent structure and provincial backing position it as a credible example of industrial-scale carbon removal finance.
Keywords: Carbon Direct, Varme Energy, waste-to-energy, carbon capture, carbon storage, Alberta, AIH1, carbon removal, BECCS, renewable energy, decarbonization, ESG, climate impact, net-zero, industrial decarbonization.