Babcock & Wilcox (B&W) will carry out the front-end engineering and design (FEED) work for Varme Energy’s waste-to-energy plant with carbon capture and sequestration (CCS) in Alberta, Canada.
Set to be operational in 2027, with a final investment decision planned for early 2025, the project will process up to 200,000 tonnes of waste per year. Varme Energy believes the plant to be the first waste-to-energy with carbon capture and sequestration facility in Canada.
Under terms of the FEED contract, B&W will conduct engineering and design for the plant’s waste-fired boiler, emissions control technologies and post-combustion carbon capture system.
Jimmy Morgan, Chief Operating Officer at B&W, described the initial engineering contract as an important first step in what he anticipates being an exciting, large-scale municipal waste-to-energy with sequestration project.
Once the FEED is complete, B&W’s anticipated scope for the proposed project would include the design, supply and construction of the plant’s combustion grate, boiler and economiser, as well as the design and supply of the air quality control system (AQCS) for particulates, nitrogen oxide and sulfur oxides, and a carbon capture absorber and sorbent regeneration system.
Wayne Carey, Chief Operating Officer of Varme Energy, said “Leveraging B&W’s global experience in delivering safe, proven and environmentally sound waste-to-energy facilities is our first step in reducing waste destined for landfills and providing clean, reliable electricity.”
Earlier this year (June 2024), Varme Energy announced a strategic partnership with the Canada Growth Fund (CGF) and Gibson Energy. The agreement will see CGF purchase up to 200,000 tonnes of carbon credits each year from the project over 15 years, with a starting price of $85 per tonne.
Read more:Carbon pricing: What the rising cost of traded carbon means
The project is expected to retain the ability to sell up to 100,000 tonnes per annum of carbon emission reductions into alternative carbon markets, including as bioenergy with CCS (BECCS) atmospheric carbon removal credits.
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