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Varme Energy Negotiates First of its Kind Waste-to-Energy Agreement with the City of Edmonton

February 14, 2024

Bennett Jones has assisted Varme Energy Inc. in successfully negotiating a first of its kind waste-to-energy agreement with the City of Edmonton. The agreement sees the City diverting approximately 150,000 tonnes of residential garbage per year to a privately funded and operated waste-to-energy facility located 40 kilometers northeast of Edmonton. Once operational, the facility will be Canada’s first industrial-scale, waste-to-energy facility with carbon capture.

Powered by technology that has been time-tested in Europe, Varme’s waste-to-energy facility will contribute to Edmonton’s green energy transition. Using residential garbage as a fuel source is expected to provide benefits to an array of stakeholders, with the City being able to limit its landfill use, transfer risk to the private sector and lower regional greenhouse gas emissions, including methane. At the same time, the additional clean heat and energy generation capacity provided by Varme’s waste-to-energy plant, aided by carbon capture technology, will benefit Alberta's Industrial Heartland.

This groundbreaking Canadian business arrangement saw the Bennett Jones team successfully tackle the challenge of developing robust rights, obligations and protections with unconventional thinking and innovative problem-solving. The work done by Bennett Jones was made even more meaningful considering that the agreement will create a long-term relationship between Varme and the City of Edmonton, serving as the keystone for all follow-on activities associated with Varme's waste-to-energy project. This is another "first" for Bennett Jones—the firm clients trust to solve their most complex legal matters.

Varme Energy Inc., a subsidiary of Norwegian-based Varme Energy A/S, is the first Canadian energy development company focused on waste-to-energy with integrated carbon capture and storage (CCS).

The Bennett Jones team on the agreement was led by Simon Foxcroft (Commercial Transactions) and included Artem Barsukov (Dispute Resolution), Karen Dawson (Financial Services), Julia Amelio (Banking and Finance), and Julia Pasieka (Commercial Transactions).

More information on this milestone agreement is available here.

Key Contacts

  • Simon  Foxcroft Simon Foxcroft, Partner
  • Artem N. Barsukov FCIArb Artem N. Barsukov FCIArb, Partner
  • Karen J. Dawson Karen J. Dawson, Partner
  • Julia  Amelio Julia Amelio, Associate
  • Julia N. Pasieka Julia N. Pasieka, Associate

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