Carbon Direct and Varme Energy Announce New Collaboration to Further Alberta Industrial Heartland (AIH1) Project ->
Carbon Direct and Varme Energy have announced a new collaboration on the Alberta Industrial Heartland (AIH1) project, in which Carbon Direct will contribute technical expertise to the project and bring Varme's carbon removal credits to market. Located in Strathcona County within Alberta's Industrial Heartland northeast of Edmonton, the project is Canada's first commercial-scale waste-to-energy facility with integrated carbon capture and storage. The AIH1 project strengthens the reliability and sustainability of a currently fossil-fuel-dominated grid, and generates new economic opportunities through construction and long-term operations.
The AIH1 integrates stringent environmental design standards, benefits from direct access to CO₂ transportation pipelines and sequestration hubs, and leverages existing heavy industry infrastructure, such as Atlas and Wolf Midstream. Captured CO₂ will be injected into deep saline aquifers, where Alberta's rigorous regulatory standards ensure millennia-scale durability, with liability ultimately assumed by the provincial government. AIH1 is expected to divert ~205,000 tonnes of municipal solid waste (MSW) from landfills and capture over 130,000 tonnes of CO₂ annually for permanent storage annually. The project aims to begin commercial operations in 2029, with 130,000 tonnes of biogenic BECCS (Bioenergy with Carbon Capture and Storage) credits ready each year for delivery ahead of 2030. Carbon Direct and Varme Energy are working to secure necessary offtake.
“Our focus has always been on delivering high-quality tonnes across a range of solutions," said Trey Sides, Director of Sourcing, Carbon Direct. "After deep analysis and evaluation, it is clear that the Alberta Industrial Heartland project provides a unique opportunity to combat landfill waste, tackle climate change, and generate clean power. We look forward to working with Varme Energy to bring this project to scale and to offer the market new high-quality carbon removal credits from it.”
Over its 25-year operating life, Varme Energy's AIH1 project is expected to divert more than 5 million tonnes of waste from landfills, permanently store over 3.2 million tonnes of CO₂, and deliver approximately 7 megawatts of clean, firm power to the grid.
“We're thrilled to be working with Carbon Direct, the global leader in science-driven carbon removal solutions, on this shovel-ready project. Their reputation, reach, and technical rigor reinforce the integrity and commercial value of the Heartland Project," said Wayne Carey, Chief Operating Officer, Varme Energy. "And, our strategic partnerships with Babcock & Wilcox and Worley Construction Canada allow Varme to leverage two Alberta-based contractors with global waste-to-energy expertise.”
Carbon Direct is working with the Varme Energy project team to support best-in-class alignment with the Criteria for High-Quality Carbon Dioxide Removal Credits, which was developed by Carbon Direct and Microsoft. Buyers interested in procuring high-quality CDRs from the project should visit the Carbon Direct website: https://www.carbon-direct.com/services/carbon-credits
About Carbon Direct
Carbon Direct is a science-first organization that combines technical and commercial expertise to decarbonize the global economy. Our 70+ scientists work closely with our finance and market experts to design, diligence, and deliver decarbonization solutions across industries. From JPMorganChase to Microsoft, Carbon Direct helps leading companies with carbon dioxide removal, carbon measurement, firm clean power opportunities, and low-carbon energy solutions. To learn more, visit www.carbon-direct.com.
About Varme
Varme Energy is a Canadian developer pioneering waste-to-energy with integrated carbon capture and storage. Through close collaborations with municipalities, industry, and Indigenous communities, Varme is building a future that is both landfill-free and carbon-free. The Alberta Industrial Heartland facility is Varme's first commercial-scale project and a blueprint for nationwide expansion. For more information, visit www.varme.ca.
