Canada Infrastructure Bank loans Varennes Carbon Recycling $202M

In Canada, Canada Infrastructure Bank (CIB) has concluded the financing on its first project from its low-carbon fuels, carbon capture utilization storage and hydrogen initiative with support for a biorefinery and the country’s largest electrolyzer.

Under the terms of the agreement, the CIB will provide a loan of C$277 million to a joint-venture partnership between Shell, Suncor, Proman and the government of Québec that will enable construction of Canada’s largest biorefinery, based on a technology platform developed by Enerkem.

The C$1.2 billion facility – known as Varennes Carbon Recycling – will include an electrolyzer which will supply clean hydrogen and oxygen to convert more than 200,000 tonnes of non-recyclable waste and residual biomass into biofuels with a capacity of up to 130 million litres annually.

The project is expected to create more than 500 jobs at the peak of construction and about 100 permanent jobs once operational.