The Feds are putting their money where their collective mouths are after the Canada Infrastructure Bank (CIB) sunk $277 million into an all-purpose Swiss Army knife of a recycling-biodiesel-hydrogen-oxygen-carbon reduction platform to be located in Varennes, Que..The $1.2 billion project is a partnership between Shell, Suncor, the government of Quebec and a cast of smaller tech firms which will use a proprietary technology to convert more than 200,000 tonnes of ‘non-recyclable waste and residual biomass’ into biofuels with a capacity of up to 130 million litres annually. The project is expected to create more than 500 jobs at the peak of construction and about 100 permanent jobs once operational, CIB said in a release..The CIB said the funding supports Quebec’s leadership in renewable energy and innovation and Canada’s aim to be net zero by 2050. The CIB loan aims to provide financing to a “relatively emerging industry with upside.”.Established in 2017 as part of the Investing in Canada infrastructure plan, the CIB’s purpose, functions, governance structure and powers are defined under the Canadian Infrastructure Bank Act. The Crown corporation was seeded with $35 billion in capital with a mandate to: "invest, and seek to attract investment from private sector investors and institutional investors, in infrastructure projects in Canada or partly in Canada that will generate revenue and that will be in the public interest by, for example, supporting conditions that foster economic growth or by contributing to the sustainability of infrastructure in Canada," according to its website..The CIB is headquartered in Toronto with regional offices in Montreal and Calgary. According to its boiler plate mission statement, it operates at arm's length from the government in line with the “Government of Canada's priorities,” which include “large, transformative projects” such as regional transit plans, transportation networks such as roads and bridges and electricity grid interconnections “in the public interest.” .The government has further requested the bank also support investments in indigenous infrastructure projects. In the 2022 budget, the Trudeau Liberals authorized the CIB to “accelerate Canada's transition to a low-carbon economy,” enabling the bank to consider investments in: small modular reactors; hydrogen and clean fuel production; transportation and distribution networks including passenger and agricultural related rail systems; and carbon capture, utilization and storage (CCUS), among others..As of November, the CIB said it advanced 44 partnerships, five memoranda of understanding, and five advisory engagements worth $8.3 billion in capital while attracting $7.8 billion in private and institutional investment..The problem is, nobody knows exactly what the hell it actually means. According to various spokespeople, the Varennes facility will accomplish everything from reducing emissions, fighting climate change, reducing waste, producing clean hydrogen and providing electricity for electric vehicles. .“Clean fuels are an essential part of the clean technology mix in a net-zero world. While electrification will be a chosen route in some sectors, clean fuels will also play a very significant role going forward. Projects like this will accelerate important work to help Canada achieve its ambitious environmental and economic objectives I look forward to continuing to work with the Canada Infrastructure Bank and private sector partners to produce the clean hydrogen the world needs,” said Natural Resources Minister Jonathan Wilkinson..“Suncor is proud to be a partner in Varennes Carbon Recycling, a project that will divert non-recyclable waste from landfills and turn it into renewable methanol for use in marine transportation and the production of circular plastics. We sincerely appreciate the financial support provided by the Canadian and Quebec governments, which will enable this project to become one of the largest producers of renewable methanol in the world,” added Mark Townley, Suncor’s senior VP of supply, trading and optimization.
