Proman closes its investment in Québec’s first carbon-recycling and biofuels plant and will lead bio-methanol marketing

Varennes Carbon Recycling, the landmark waste to biofuels plant in Varennes, Québec, has now reached financial close, with investment agreements signed by Proman and its partners, Shell, Suncor, the Government of Québec, and Enerkem. As part of the investment agreement, Proman will be entitled to market the methanol produced from the plant, which, once the plant is in operation, could make Proman the largest marketer of bio-methanol globally. 

The plant is expected to ramp up to a production level of 100,000 tons of bio and circular methanol per year, using Enerkem’s proprietary technology to convert non-recyclable waste into sustainable methanol, which can then be converted to other low-carbon biofuels such as ethanol and gasoline.

This method produces fuels with substantially less carbon intensity when compared to conventional fossil fuels, as well as ensuring that waste materials are recycled rather than being placed into landfill or burned. The bio-methanol produced has a wide range of possible applications in ground transportation, power generation and industry as well as a viable alternative marine fuel.

Proman’s Chief Executive, David Cassidy, said of the project: “Bio-methanol has enormous potential as our economies continue to decarbonise. Proman is committed to using our expertise in the methanol market and our unique integrated value chain to serve our customers’ evolving needs and contribute towards meeting global sustainability targets. Proman’s marketing, logistics, and operational experience is a perfect complement to Enerkem’s world-leading technology, and we look forward to working with all the project partners to making this innovative waste-to-low carbon fuels plant a great success.”

The investment in Varennes Carbon Recycling marks Proman’s first investment in Canada.  David Cassidy added: “We are excited to be a part of this partnership with the Canadian and Québec governments and, thanks to Canada’s vision and leadership in sustainable energy, we hope it will be the first of many initiatives for Proman in Canada. We look forward to continuing our partnerships with the public and private sectors in Canada and globally to develop sustainable energy projects and reduce reliance on fossil fuels.”