Alberta Utilities Commission greenlights application for waste-to-energy facility

The Alberta Utilities Commission (AUC) has approved Varme Energy's application to build a waste-to-energy facility, that would use carbon capture and storage technology to convert solid waste from Edmonton into energy.

The AUC, the province's independent utilities regulator, approved the application on May 2. Varme Energy CEO Sean Collins told CBC News that there has been significant progress over the past six month to get the project to fruition.

"We've been spending pretty significant time on all of the key permits and approvals through the project, and [have] been making really strong progress on that front," Collins said.

"One of the reasons we're so focused on Edmonton is because we have the No. 1 and No. 2 biggest CO2 pipelines in the world originating out of Edmonton." 

Varme Energy, a subsidiary of Norwegian-based Varme Energy AS, applied to the commission for approval to construct and operate a 19.6-megawatt natural gas-fired power plant, called the Heartland Waste-to-Energy Facility. The AUC issued the notice of application on March 7.

The $300 million project will be located northeast of Edmonton in Strathcona County, seven kilometres northeast of the city of Fort Saskatchewan and five kilometres southwest of the town of Bruderheim.

Starting in 2028, Varme Energy is contracted to receive 150,000 tonnes of the City of Edmonton's residential waste every year to generate electricity. 

"This agreement aligns with the city's objective of reducing landfill reliance by diverting waste toward other beneficial uses," Chris Fowler, the city's acting branch manager of waste services, said in a statement to CBC.

The city reached an agreement with Varme Energy after a competitive bidding process, he added.

Collins, of Varme Energy, said the project will see municipal garbage trucks bring solid waste to the new facility, instead of the landfill.

"We'll combust the waste to extract the energy out and integrate carbon capture, to capture the emissions from the facility, so that you get a landfill-free and carbon-free solution," Collins said.

Varme Energy drew inspiration from policies and technological advancements in European countries, Collins said, noting that the continent has about 500 or more operating waste-energy facilities.

"The feature and innovation for us is building carbon capture from Day 1," Collins said.

Amit Kumar, a University of Alberta environmental engineering researcher, told CBC News that the project holds promise, and could serve as an example for communities across Canada how to rely less on landfills. 

"You can avoid the landfill fee, but also now you can capture carbon and put it underground, so you have revenue generated to carbon credits," Kumar said.

"Municipal solid waste is a challenge for all the communities, all the provinces — you name it. Everywhere we generate waste. So this could be one of the test cases in how successfully this is run, and it could help in implementing it across Canada."

Construction on the facility is expected to begin in early 2027, then become fully operational in 2028.