Carbon Direct and Varme Energy will collaborate on the Alberta Industrial Heartland (AIH1) project—Canada’s first commercial-scale waste-to-energy facility with integrated carbon capture and storage (CCS). Located in Strathcona County, northeast of Edmonton, the project is designed to strengthen grid reliability, reduce landfill waste, and create new long-term economic opportunities in Alberta’s industrial region.
Under the partnership, Carbon Direct will provide technical expertise and manage the marketing of carbon removal credits generated by the project. Once operational, AIH1 will divert about 205,000 tonnes of municipal solid waste from landfills each year and capture more than 130,000 tonnes of CO₂ for permanent underground storage.
The project integrates stringent environmental design standards and benefits from direct access to CO₂ transportation pipelines and sequestration hubs, leveraging existing industrial infrastructure from Atlas and Wolf Midstream. Captured CO₂ will be injected into deep saline aquifers under Alberta’s regulatory framework, which ensures long-term containment with the provincial government assuming ultimate liability.
AIH1 is targeting commercial operations in 2029, with plans to deliver 130,000 tonnes of biogenic carbon removal (BECCS) credits annually ahead of 2030.
“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,” said Trey Sides, Director of Sourcing at Carbon Direct. “We look forward to working with Varme Energy to bring this project to scale and offer the market new high-quality carbon removal credits.”
Over its 25-year lifespan, the facility is projected to divert over 5 million tonnes of waste from landfills, permanently store more than 3.2 million tonnes of CO₂, and supply around 7 megawatts of clean, firm power to Alberta’s grid.
“We’re thrilled to be working with Carbon Direct, the global leader in science-driven carbon removal solutions,” said Wayne Carey, Chief Operating Officer at Varme Energy. “Their reputation and technical rigour reinforce the integrity and commercial value of the Heartland Project. Our partnerships with Babcock & Wilcox and Worley Construction Canada allow us to leverage Alberta-based expertise in global waste-to-energy innovation.”
The AIH1 project contributes to Alberta’s transition toward low-carbon industrial growth, combining waste management, renewable energy, and permanent carbon removal under one of Canada’s most advanced climate infrastructure initiatives.
