Canada Partners With Heidelberg Materials to Drive Cement Industry Decarbonization

Canada is supporting new technologies to reduce greenhouse gas (GHG) emissions from heavy industries like cement and concrete. This is why, today, the Honourable François‑Philippe Champagne, Minister of Innovation, Science and Industry, shared that ISED is working with Heidelberg Materials to finalize negotiation on a contribution agreement regarding its Edmonton carbon capture, utilization and storage (CCUS) plant.

This announcement builds on a 2023 memorandum of understanding between the Government of Canada and Heidelberg Materials to work toward providing up to a total of $275 million for Heidelberg's demonstration plant, the first of its kind in the cement industry in North America. The government has already entered into a $49 million contribution agreement to support the first phase of this project.

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Once finalized through an agreement for phase 2, this funding of up to $226 million will help support and build North America’s first commercial full-scale CCUS system in the cement sector and a combined heat and power system (CHP) at its Edmonton cement facility. The funding for this project has been set aside by the Strategic Innovation Fund with a view to supporting the project once Heidelberg Materials makes a final investment decision prior to April 30, 2025.

This CCUS system, the first of its kind in the cement industry in North America, will enable the company to produce carbon-neutral cement through the capture and compression of carbon dioxide (CO₂) for subsequent transportation and permanent storage, reducing GHG emissions by up to one million tonnes annually, the equivalent of removing more than 300,000 passenger vehicles from the road each year. This project would bring significant benefits to the province of Alberta by maintaining over 1,900 full-time jobs and would provide great economic opportunities to local suppliers in Canada.

This project will position Canada as a global leader in low-carbon cement, helping the country stay on track with a net-zero trajectory. The Government of Canada and the cement sector are committed to supporting the Roadmap to Net-Zero Carbon Concrete by 2050 to reduce pollution and build a sustainable economy.

Quotes

“This groundbreaking partnership with Heidelberg Materials takes us one step closer to a net-zero Canada by 2050. By building North America’s first carbon capture system in cement, we’re driving innovation, cutting emissions and securing a sustainable future. This project will create jobs, boost Alberta’s economy and set a new standard for sustainable industry in Canada and beyond.”– The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry

“The Government of Alberta is pleased that Heidelberg has chosen Edmonton, Alberta, for the site of the world's largest commercial carbon capture, utilization and sequestration cement plant. Alberta’s CCUS framework and opportunities are unrivaled, and the Alberta government is pleased to participate with Heidelberg and the Government of Canada to help bring these industry-changing innovations to cement making.”– The Honourable Danielle Smith, Premier of Alberta

“We are excited to reach this critical milestone in this first-mover project, which began in 2019, and we appreciate the support from the Government of Canada, the Government of Alberta and the City of Edmonton. We look forward to further collaboration with these key stakeholders as we continue making progress toward a net-zero future and working to decarbonize the cement industry.– Chris Ward, President and CEO, Heidelberg Materials North America

Quick facts

• Since 1993, Heidelberg Materials has been operating in Canada (British Columbia, Alberta and Ontario) and has been a leading producer of cement products in North America. Its core activities include the production of cement, aggregates, ready-mix concrete, asphalt and other downstream products.

• Concrete is the most used building material on the planet, and the cement needed to make that concrete accounts for 7% of global carbon dioxide (CO2) emissions.

• More than 1,100 ready-mixed concrete, precast concrete, concrete pipe and masonry plants are located across Canada. Collectively, the industry is responsible for approximately 166,000 direct and indirect jobs, and it contributes $76 billion to our economy annually.

• Carbon capture is a technology that can capture up to 95% of the CO2 emissions produced from the use of fossil fuels in electricity generation and industrial processes, preventing the carbon dioxide from entering the atmosphere.

• The Government of Canada has identified carbon capture, utilization and storage (CCUS) technologies as one of the four key technology areas critical to achieving global climate and energy goals.

• Increased use of CCUS features in the mix of every credible path to achieving net zero by 2050, including all 1.5°C pathways developed by the United Nations Intergovernmental Panel on Climate Change and the International Energy Agency.