Heidelberg Materials North America has secured a commitment from the Government of Canada’s Innovation, Science and Economic Development Canada body to finalise negotiations on a contribution agreement for a carbon capture, utilisation, and storage (CCUS) project at its Edmonton cement plant.

The Edmonton CCUS project, once realised, aims to establish the world’s first full-scale CCUS application in the cement sector, capturing over one million tonnes of carbon dioxide (CO₂) annually.

In 2023, François-Philippe Champagne, Canada’s minister of innovation, science, and industry, signed a letter of intent to contribute C$275m ($191.8m) to the project.

The national government has already signed a C$49m agreement for the initial phase of the Edmonton CCUS project.

The remaining C$226m will be allocated upon finalising an agreement for phase two, which will fund the construction of the CCUS system and a combined heat and power system at the Edmonton facility.

This initiative is expected to maintain more than 1,900 full-time jobs in Alberta and provide economic benefits to local suppliers. The government’s Strategic Innovation Fund has earmarked the funding in anticipation of Heidelberg Materials’ final investment decision.

Champagne said: “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.”

Heidelberg Materials North America president and CEO Chris Ward said: “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 continued progress and further collaboration with these key stakeholders as we advance this project forward and work toward our final investment decision.”

Heidelberg Materials North America, headquartered in Texas, US, is a subsidiary of Heidelberg Materials, a building materials and solutions manufacturer.

Since 1993, Heidelberg Materials North America has been active in Canada, with operations in the provinces of British Columbia, Alberta, and Ontario. Its business encompasses cement, aggregates, ready-mix concrete, asphalt, and other building materials.

In November 2024, Heidelberg Materials North America agreed to acquire Giant Cement and its subsidiaries.