MIL-OSI Translation: Deputy Prime Minister welcomes fourth investment from the Canada Growth Fund

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MIL OSI Translation. Canadian French to English –

Source: Government of Canada – in French

Second Carbon Contract for Difference invests in Canada’s first reduced waste-to-energy project

June 11, 2024 – Ottawa, Ontario – Department of Finance Canada

The Honorable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, today welcomed the announcement of the fourth investment from the Canada Growth Fund.

Through its second carbon contract for difference, the Canada Growth Fund is supporting Varme Energy Inc. – an Edmonton-based developer of waste-to-energy facilities for integrated carbon capture and storage. In partnership with Gibson Energy Inc., Varme is seeking to develop Canada’s first waste-to-energy project through carbon capture and storage in the Heartland region.

Under this innovative transaction structure, the Canada Growth Fund would purchase up to 200,000 tonnes of carbon credits per year for 15 years at an attractive initial price of $85 per tonne, plus any escalation. Carbon credit flow agreements, a type of contract for difference for carbon, mitigate the risks associated with investments in emissions reductions by guaranteeing the fixed price purchase of carbon credits for reduced emissions.

In January, the City of Edmonton awarded Varme a 15-year contract to collect and process 200,000 tonnes per year of municipal solid waste starting in 2027. The new sustainable project will incorporate carbon capture technology to to incinerate waste safely and cleanly and to produce clean electricity at an affordable price. It will also create good-paying jobs for Albertans, reduce residential energy costs, divert waste from landfills and reduce emissions.

Waste-to-energy combined with carbon capture has significant potential for use across the country, in addition to strengthening Canada’s position as a world leader in carbon capture.

In addition to its contribution to Varme’s inaugural project in Edmonton, the Canada Growth Fund will also have the opportunity to participate in future Canadian projects using Varme’s integrated carbon capture technology and waste-to-energy approach. This will help mitigate risks and accelerate private investment in carbon capture across Canada by providing carbon price certainty for carbon capture projects.

In Budget 2024, the Government announced further measures to grow the economy and create well-paying jobs today and for the next generation, including expanding the Fund’s Carbon Contracts for Difference offering. growth in new markets. Through initiatives like the Canada Growth Fund, the government is enabling entrepreneurs and innovative companies to bring their ideas to life, thereby building a better, more prosperous future.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.

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