- Gibson Energy (TSX:GEI), Canada Growth Fund and Varme Energy are joining forces to accelerate the development of Canada’s first waste-to-energy facility with carbon capture technology
- The project will process up to 200,000 tonnes of municipal solid waste into carbon-negative electricity per year under a 15-year contract
- Gibson is a liquids infrastructure company specializing in the storage, optimization, processing and gathering of liquids and refined products
- Gibson Energy stock has added 7.49 per cent year-over-year, but only 0.87 per cent since 2019
Gibson Energy (TSX:GEI), Canada Growth Fund and Varme Energy are joining forces to accelerate the development of Canada’s first waste-to-energy facility with carbon capture technology.
The project will be operated by Gibson, reside on its land in Alberta’s Heartland-area and process up to 200,000 tonnes of municipal solid waste per year, reducing the strain on landfills from residential garbage under a 15-year contract between Varme and the City of Edmonton. The facility will also benefit from:
- Carbon capture technology that will allow it to produce carbon-negative electricity.
- An agreement with Canada Growth fund to purchase up to 200,000 tonnes of carbon credits per year generated by the facility for C$85 per tonne for 15 years. The facility will be able to sell up to 100,000 tonnes of carbon credits per year into alternative carbon markets, granting it added revenue certainty.
Commissioning is slated for 2027, following an ongoing front-end engineering and design study and a final investment decision (FID) planned for early 2025. If the FID is a positive one, Gibson, Canada Growth Fund and Varme would have a 50 per cent, 40 per cent and 10 per cent ownership interest in the project, respectively.
About Canada Growth Fund
Canada Growth Fund is a C$15 billion arm’s-length public investment vehicle managed by PSP, one of Canada’s largest pension investment managers. The fund is focused on attracting private capital to build Canada’s clean economy across low-carbon projects, technologies, businesses and supply chains.
About Varme
Varme, a subsidiary of Norwegian-based Varme Energy, is the first Canadian energy development company focused on waste-to-energy with integrated carbon capture.
About Gibson Energy
Gibson is a liquids infrastructure company specializing in the storage, optimization, processing and gathering of liquids and refined products. The company is based in Calgary and operates 25.2 million barrels of storage and more than 500 kilometres of crude pipelines across North America.
Gibson Energy stock (TSX:GEI) is down by 0.43 per cent trading at C$23.10 per share as of 9:56 am ET. The stock has added 7.49 per cent year-over-year, but only 0.87 per cent since 2019.
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