Energy company Shell announced today an agreement to invest in Varennes Carbon Recycling, an C$875 million commercial-scale facility to be constructed in Varennes, Quebec. The facility, based on technology from using technology developed by Canadian cleantech company Enerkem, will be the first in Quebec to produce low-carbon fuels and renewable chemicals products from non-recyclable waste.

According to the terms of the agreement, Shell will have a 40% interest in the plant, alongside other investors including Enerkem, Suncor, Proman and Hydro-Québec, as well as the Quebec and Canadian governments.

Michael Crothers, Shell Canada President and Country Chair, said:

“Building a commercial-scale low-carbon fuels plant is one of the ways Shell is advancing cleaner fuels and evolving to meet the changing expectations of our customers. Canada is well suited to capitalize on the energy transition thanks to the ingenuity of Canadians and our willingness to work together. We’re grateful for the collaboration between industry and government that has been instrumental in making this project a reality.”

Commissioning of the first phase of the facility is scheduled for 2023. Once completed, the plant will treat more than 200,000 tonnes of non-recyclable waste and wood waste per year with an annual production of nearly 125 million liters of low carbon fuels. Shell stated that in addition to diverting waste from landfill sites, the Varennes Carbon Recycling plant will expand the overall supply of alternative fuels and increase low-carbon fuels production in Quebec, accelerate greenhouse gas reduction in the transportation sector and increase Quebec’s leadership in renewable energy and innovation.

Crothers added:

“The Varennes Carbon Recycling plant demonstrates our commitment and ability to use wastes as a feedstock to provide our customers with low carbon, high quality and affordable products.”