A Calgary-based company, Gibson Energy Inc., has secured a carbon price backstop contract through the Canada Growth Fund to develop Canada’s first waste-to-energy facility with carbon capture technology. The facility aims to convert landfill waste into clean electricity while capturing greenhouse gas emissions to prevent them from entering the atmosphere.
Under the agreement, the Canada Growth Fund will purchase 200,000 tonnes per year of carbon credits from the project at an initial price of $85 per tonne for a 15-year term. This carbon price assurance mechanism ensures stability for the project and reduces the risk associated with investing in emissions-reducing technology.
The deal, which involves Gibson owning 50% of the project, aligns with the Canada Growth Fund’s mandate to support innovative projects that may not happen with only private sector capital. The project partners aim to finalize the investment decision early next year, with construction targeted to begin in 2027.
Gibson Energy sees the waste-to-energy project as a step towards its commitment to achieving net-zero emissions by 2050 while providing long-term cash flows and growth opportunities in the energy transition sector.
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