Shell Canada Ltd, an affiliate of Royal Dutch Shell plc (Shell), has announced the signing of commercial agreements to invest in Varennes Carbon Recycling (VCR), the first waste to low-carbon fuels plant in Québec, Canada. Shell will have a 40 percent interest in the plant using technology developed by Enerkem Inc., a leading Canadian cleantech company.
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Enerkem announced the project in December 2020, subject to the finalization of commercial agreements. The approximately C$875 million commercial-scale facility will be constructed in Varennes, Québec, and will produce low-carbon fuels and renewable chemicals products from non-recyclable waste using Enerkem’s proprietary technology.
Commissioning of the first phase of the facility is scheduled for 2023. Critical investment in the plant comes from Shell, Enerkem, Suncor, Proman, and Hydro-Québec, as well as from the Québec and Canadian governments.
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, said Michael Crothers, Shell Canada President, and Country Chair.
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 litres of low carbon fuels.
In line with low carbon fuel ambitions
Shell has been a significant producer of ethanol as a low carbon fuel for the last ten years through Raízen, its joint venture in Brazil. Bioethanol is an effective way to reduce road transport emissions today, without the need to invest in new vehicles or infrastructure, and already plays a significant role in helping to decarbonise road transport in the Americas and in Europe.
Shell’s ambition to become a net-zero emissions energy business by 2050 or sooner, in step with society, includes reducing the carbon intensity of the company’s energy products. Shell’s low-carbon fuels production strategy is anchored around its access to competitive feedstock, commercialization of advanced technology, and the building of internal capability.
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 fuel production in Québec, accelerate greenhouse gas (GHG) reduction in the transportation sector, and increase Québec’s leadership in renewable energy and innovation.
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, Michael Crothers said.
