Project Overview
Funded through ERA’s Partnership Intake Program in 2024, the project supports the development of a first-of-its-kind Canadian facility that will convert municipal solid waste (MSW) into electricity while capturing and permanently storing its CO2 emissions. With ERA support, Varme Energy completed a comprehensive FEED study and Association for the Advancement of Cost Engineering (AACE) Class 3 cost estimate, advancing the project to the brink of final investment decision and significantly reducing technical, commercial and facility integration risks.
Advancing a First-of-Kind Bioenergy and Carbon Capture System
The facility plans to combine proven waste-to-energy (WtE) combustion technology with post-combustion carbon capture to create a high-efficiency, low-carbon alternative to landfilling. This facility will utilize MSW currently being driven and tipped in a landfill that’s a 180 km round trip outside Edmonton. Instead, the project plans to divert 205,000 tonnes of MSW each year, combusting it in a boiler system that converts its energy content into electricity for Alberta’s grid. The resulting flue gas is treated and then routed through an advanced amine-based carbon capture system that removes CO2 for permanent geological storage. This integration transforms the process into a low-carbon, baseload energy source. Additionally, the system avoids methane emissions by diverting waste from landfills, reduces waste-hauling distances, generates clean electricity, and captures the CO2 from combustion, making it an innovative waste-management and clean-energy solution. As a Bioenergy Carbon Capture and Storage (BECCS) project, it will also generate stacked carbon credits through methane avoidance and CO2 removal.
Progressing Plant Design to Reduce Technical and Commercial Uncertainty
During the project, Varme completed a robust Front-End Engineering and Design (FEED) study, delivering an AACE Class 3 cost estimate, a full 3D model, procurement packages, a risk analysis and all major regulatory submissions. The work brought the project from conceptual design to a fully engineered, investment-ready state, significantly reducing technical and commercial uncertainty. Varme also advanced the outside battery limit (OSBL) planning while progressing key vendor agreements and engineering contracts. These outcomes collectively increased project maturity from TRL 8 to TRL 9.
Several lessons emerged directly from challenges encountered during the project. The team struggled to coordinate with the multiple interfaces between the project’s design engineers, technology suppliers and commercial stakeholders. Early coordination difficulties slowed progress until partners aligned on work processes and communication pathways, highlighting the importance of strong interface management and clearer communication protocols at project initiation. Additionally, misalignment between the City of Edmonton’s waste characterization data and flue-gas modelling methods further highlighted the importance of establishing a consistent, standardized design basis, feedstock characterization and evaluation methodology at the outset. Detailed engineering also revealed that the waste’s calorific value was lower than expected and the CCS parasitic load had been underestimated. These discoveries forced a 25 per cent scale-up of the facility and adjustments to the commercial model.
The regulatory and risk-assessment activities also informed key learnings. Developing the Environmental Protection and Enhancement Act (EPEA) permit in collaboration with provincial experts taught Varme that early, collaborative regulatory engagement is critical and can create a replicable pathway for future facilities. Likewise, completing a joint risk analysis with consulting organizations Worley and B&W emphasized the value of integrated, cross-partner risk planning and prioritization to establish realistic contingencies. Together, these lessons helped shape Varme’s approach to future projects by strengthening early engineering discipline, improving coordination and ensuring more reliable inputs before major design decisions are made.
What’s next?
Upon completion in 2025, the project is now positioned to transition from engineering into construction-readiness, advancing Alberta’s first integrated WtE and carbon-capture facility toward deployment. Varme’s next step for the project includes conducting a more detailed engineering study to progress detailed design and find capital reduction opportunities. The team also plans to develop a construction execution plan, complete RFQs for major equipment items, issue purchase orders and progress the engineering, construction and management contracts with chosen vendors and contractors. Overall, the project will help to guide Varme and future implementers’ efforts.