Key facts
- Heidelberg Materials' Edmonton carbon capture project is on hold due to investment uncertainty.
- The project aimed to capture one million tonnes of CO2 annually from a cement plant.
- Rising capital cost estimates and weakening carbon credit values contributed to the decision.
- Norway's Brevik cement plant's CCS project succeeded due to state risk-sharing and operational support.
- Canada is developing carbon contracts for difference and future floor prices for carbon credits.
Heidelberg Materials' proposed carbon capture project in Edmonton, designed to be North America's first full-scale installation at a cement plant, has been put on hold. The project aimed to capture around one million tonnes of CO2 annually. Despite technical feasibility confirmed by a pilot, substantial government support, and identified infrastructure, the project could not secure predictable revenue streams necessary for investment. Rising capital cost estimates, approaching CAD 2 billion from an initial CAD 1.36 billion, and a weakening value for avoided carbon tonnes, with Alberta's industrial carbon price and tradable credit values falling short of projections, led Heidelberg to conclude it was not a responsible use of shareholder capital. The situation highlights the gap between technological readiness and policy support versus investment readiness in carbon capture projects.