Heidelberg Materials has delayed its planned full-scale carbon capture and storage (CCS) project at its Edmonton cement plant in Alberta, Canada, amid uncertainty over carbon pricing and the economics of the investment.
The project was originally expected to become operational by the end of 2026, capturing more than 1Mt of CO2 annually. In 2023 Heidelberg Materials and the Canadian government announced plans to support the CAD1.36bn (US$990m) development, comprising a full-scale carbon capture, utilisation and storage system and combined heat and power facility.
However, David Perkins, Heidelberg Materials North America’s vice president of sustainability and public affairs, told Edmonton-based news outlet Taproot that lower-than-anticipated carbon prices had weakened the project's business case.
The company has indicated that capital costs could now reach as much as CAD2bn.
A recently-published lessons-learned report on the Edmonton project confirmed that large-scale capture at the plant is technically feasible, but identified policy uncertainty as a continuing cause of delays to project sanctioning, adding to development costs and inflationary pressures. It also concluded that government funding and regulatory clarity remain important to the commercial case for CCS.
The Canadian government had previously proposed providing up to CAD275m towards the project through its Strategic Innovation Fund, including CAD49m for its first phase. In March 2025, the government said funding of up to CAD226m for the second phase was subject to Heidelberg Materials reaching a final investment decision.
The proposed Edmonton system would transport captured CO2 to Enbridge’s Open Access Wabamun Carbon Hub for permanent geological storage. Development work on the storage hub remains active.
