Canada Infrastructure Bank is investing $277 million in a new biofuels facility that is being built in Varennes, Quebec.
The facility, called “Varennes Carbon Recycling,” is being constructed at a total cost of $1.2 billion and is a joint-venture between Shell (SHEL), Suncor Energy (SU) and privately held Swiss natural gas firm Proman.
Once completed in 2025, the Quebec biofuels facility will be used to produce biofuels and renewable chemicals out of landfill waste and wood waste.
The plant will also incorporate one of the world's largest electrolyzers, which will split water molecules into oxygen and green hydrogen for use in making biofuels.
The project will be the largest biofuels facility in Canada and is also being funded by the Government of Quebec.
There is growing interest in biofuels, which are fuels created from renewable biomass such as agriculture waste and food waste, as companies try to lower their greenhouse gas emissions.
Other projects in development across Canada include Imperial Oil's (IMO) renewable diesel complex near Edmonton, Alberta, and Atco Energy's (ACO.X) renewable natural gas facility near Vegreville, Alberta.
Canada Infrastructure Bank, a Crown corporation, has a mandate to include clean fuel production, carbon capture utilization and storage, and hydrogen production in its investments.
The Varennes carbon recycling facility is expected to convert more than 200,000 tonnes of non-recyclable waste into biofuels annually, with a capacity of up to 130 million litres.
The companies involved in the Quebec project say it will reduce greenhouse gas emissions by more than 170,000 tonnes annually, which is the equivalent of taking 50,000 passenger vehicles off Canadian roads and highways.
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