Canada partners with Heidelberg Materials to advance cement industry decarbonization
The investment will help build North America's first commercial full-scale carbon capture, utilization and storage system in the cement industry.
March 10, 2025 | By MRO Magazine
On Mar. 7, François–Philippe Champagne, Minister of Innovation, Science and Industry, announced 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.
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 Strategic Innovation Fund has reportedly allocated this funding to support the project, contingent on Heidelberg Materials making a final investment decision before April 30, 2025.
This CCUS system aims to 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 help maintain over 1,900 full-time jobs in Alberta and help to provide great economic opportunities to local suppliers in Canada.
“This groundbreaking partnership with Heidelberg Materials takes us one step closer to a net-zero Canada by 2050,” said Minister Champagne. “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.”
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