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Environment and Industry News
West coast pipeline, private partner, oilsands production and pathways
The West Coast Oil Pipeline will transport more than one million barrels of oil per day to Canada’s west coast and strengthen access to growing Asian markets, helping meet Alberta’s goal to double its oil production to eight million barrels per day over the next 10 years.
After studying both northern and southern route options, Alberta selected a southern corridor from Bruderheim, Alberta, to the southwest coast of British Columbia. This offers the fastest, most cost-effective path to expanding Canada’s energy exports. The proposed corridor builds on existing infrastructure, reflects feedback from Indigenous groups and the Government of British Columbia, reduces regulatory barriers given it would not be subject to the Oil Tanker Moratorium Act (Bill C-48), and gets Canadian oil to global markets faster.
“Canada has everything it needs to become an energy superpower, but only if we build the infrastructure to get our resources to market. Alberta has done its part by putting forward a responsible, world-class proposal and selecting the strongest route to Canada’s west coast. A west coast oil pipeline will create tens of thousands of jobs, generate tens of billions in new provincial and federal revenues and make Canada more secure and self-reliant. This project will define Alberta’s and Canada’s economic future.”
The proposed pipeline runs through southern British Columbia, largely following the existing Trans Mountain pipeline corridor to a deep-water, VLCC-capable port terminal on B.C.’s southwest coast. Leveraging this existing corridor will significantly reduce regulatory and logistical barriers, while minimizing land disturbances.
The submission outlines details on the proposed corridor and size of the pipeline and associated infrastructure, costs and benefits to Canada. The submission clearly demonstrates why this project is in the national interest. The Alberta-Canada landmark energy agreement announced in May includes a commitment from the federal government to a timely review of Alberta’s submission for a west coast pipeline, with the goal of achieving national interest listing by Oct. 1, 2026, and obtaining the permissions necessary for the design and construction of the pipeline to commence as early as Sept. 1, 2027.
“The benefits of this project extend far beyond the energy sector. A west coast pipeline will support businesses and workers right across the supply chain – from manufacturing and engineering to transportation and services – helping drive economic growth in communities across Canada and generating revenues that support public services people rely on.”
Private and Indigenous partnership
To facilitate this project, Alberta’s government will enter into a partnership with Trans Mountain Corporation and Pembina Pipeline to bring together world-class expertise in pipeline design, construction and operation.
“Trans Mountain is proud to bring our experience as an oil pipeline developer, constructor, operator and owner to this new partnership. Our existing relationships and partnerships with the Indigenous Peoples, communities and stakeholders along the proposed corridor give us a solid foundation for success. We are proud to help bring more Canadian energy to the world, as Canada fulfills its role as a global energy superpower.”
“The project represents a once-in-a-generation opportunity to advance nation-building energy infrastructure that strengthens Canada’s economy and expands access to global markets for Canadian energy. We are proud to participate in this national priority that brings together the Government of Canada, the Province of Alberta, Indigenous partners and industry.”
Indigenous equity partnership and consultation will also be an essential part of developing and constructing this critical nation-building project. Through the Alberta Indigenous Opportunities Corporation (AIOC) and the federal Canadian Indigenous Loan Guarantee Program, the Alberta and Canadian governments will facilitate opportunities for Indigenous communities wishing to partner in the West Coast Oil Pipeline project.
“This important project will be shaped by ongoing collaboration with Indigenous communities across Alberta and British Columbia. Indigenous knowledge and perspectives are essential from the outset and throughout the life of the project to ensure it is carried out responsibly and reflects community priorities. Through respectful partnership, we will advance shared prosperity and strong, enduring relationships.”
Following an existing corridor limits new land disturbance and reduces impacts on ecosystems and communities. Existing relationships along the corridor provide a solid foundation for meaningful engagement, partnership and Indigenous co-ownership opportunities.
Increasing oilsands production and building the pathways project
Following months of negotiation, Alberta’s government, along with the federal government and Oil Sands Alliance, are finalizing a tripartite agreement that will include a series of regulatory reforms and growth incentives needed to expedite growth in oilsands production necessary to fill the new west coast pipeline and expand the existing Trans Mountain pipeline. Details of this agreement are expected to be released in the coming days.
As part of that same agreement, Alberta’s government and the Government of Canada will provide the conditions necessary for Oil Sands Alliance member companies to simultaneously grow production and build Pathways, the world’s largest carbon capture and storage infrastructure project.
Pathways will make Alberta bitumen among the lowest-emission heavy oil globally, displacing higher-emitting sources and improving environmental and geopolitical outcomes. Alberta and Canada will continue work in close partnership, collaborating with industry and Indigenous partners to grow energy exports, attract investment and lower emissions – while strengthening the economy and addressing global energy and security challenges.
“We believe we’ve achieved a framework where there the governments are providing the necessary conditions for our companies to both grow production and to build the Pathways Project. We’d like to thank the Canadian and Alberta governments for their leadership, and the Major Projects Office for its commitment to this process. We look forward to working together over the next several months to put the MOU into operation, to create a Canadian energy superpower, and a more resilient, competitive and sustainable Canadian oil sands sector.”
$437,611.98 administrative penalty issued to Entrada Resources Inc.
On June 30, 2026, the Alberta Energy Regulator (the AER) issued an administrative penalty decision on Entrada Resources Inc. (Entrada) in the amount of $437,611.98 for three contraventions of the Environmental Protection and Enhancement Act (EPEA) and one contravention of the Pipeline Rules, AR 91/2005.
On or about July 28, 2024, an AER investigation determined that Entrada released or permitted the release of oil emulsion that caused or may have caused a significant adverse effect on the environment in the Clearwater County area of Alberta, approximately 70 kms northwest of Red Deer.
While the release occurred on or about January 1, 2023, Entrada did not report the release to the AER as required under the EPEA and failed to take reasonable remedial measures to prevent an adverse effect or further adverse effect as soon as Entrada ought to have become aware of the release, as required by the EPEA.
The primary purpose of the EPEA is protection of the public and the environment. Operators have a duty to report and take remedial measures to address releases of substances to the environment that may cause, are causing, or have caused an adverse effect as soon as the operator is or should be aware of the release.
Review the full penalty assessment, including details of all four contraventions.
Alberta orders cleanup plan for former Enerkem biofuels facility amid contamination concerns
Alberta Environment and Protected Areas has issued an enforcement order requiring remediation work at the former Enerkem Alberta Biofuels facility in northeast Edmonton, citing concerns over hazardous materials, contaminated soil and groundwater, and the condition of the shuttered plant.
The June 2026 order alleges that the facility’s operator failed to safely decommission the site and adequately monitor ongoing environmental risks following the plant’s closure in 2024.
EnerLocated on City of Edmonton-owned property, the facility was designed to convert residential waste into ethanol and other biofuels. The project, once touted as a flagship waste-to-energy initiative, struggled with operational and financial challenges before entering insolvency protection. By the time it ceased operations, the plant had produced approximately five million litres of biofuel — well below the 36 million litres annually projected by Quebec-based Enerkem.
According to the provincial order, significant environmental concerns remain at the $80-million facility. Consultants have identified toxic chemicals stored in tanks, abandoned industrial waste containers and improperly managed contaminants that could potentially escape containment systems.
Recent assessments also found soil and groundwater contamination exceeding provincial guidelines. Identified contaminants include methanol, a toxic and highly flammable solvent, as well as petroleum hydrocarbons associated with the site’s operations.
The enforcement order outlines a series of compliance issues identified over the past year. On September 25, 2025, City of Edmonton officials reported concerns under Alberta’s Environmental Protection and Enhancement Act regarding liquids that could be released outside approved containment areas. At the time, Enerkem Alberta Biofuels LP had entered receivership and was not undertaking remediation work related to the city’s concerns.
The order notes that by October 2025, no liquids had been removed from the site and no chemical analysis had been completed to determine their composition.
Further investigations conducted in December 2025 identified 18 “Areas of Potential Environmental Concern” across the facility. Contaminants of potential concern included salinity, metals, benzene, toluene, ethylbenzene, xylenes, petroleum hydrocarbons, alcohols, volatile organic compounds, polycyclic aromatic hydrocarbons, glycols, phosphates, ammonia, cyanide, sulphur compounds and asbestos-containing materials.
The province has directed the parties responsible for managing the facility to continue remediation efforts and prepare a detailed report outlining cleanup activities and environmental mitigation measures. The report must be submitted to Alberta Environment and Protected Areas by December 18, 2026.
Federal funding supports Canada’s first deep geothermal roadmap, clean energy innovation projects
The federal government is investing in geothermal energy planning and a suite of clean technology projects aimed at advancing carbon capture, renewable energy and grid modernization across Canada.
Minister of Energy and Natural Resources, Tim Hodgson, announced $468,000 in funding through Natural Resources Canada’s Energy Innovation Program to support the development of the Canadian Deep Geothermal Roadmap, the country’s first national strategy for advancing deep geothermal energy resources.
Led by the Canadian Deep Geothermal Coalition (CDGC), with the Cascade Institute serving as project secretariat, the initiative will bring together industry, researchers, Indigenous partners and governments to identify technology opportunities and research priorities needed to accelerate geothermal development in Canada.
BC Hydro has identified 16 prospective geothermal sites in the province, with the six most likely prospects having an estimated geothermal potential of over 1,000 MW collectively.
“Canada’s clean energy future relies on the talent and innovation of Canadian researchers, businesses and industry leaders, and British Columbia is leading the way,” Hodgson said in a statement.
Deep geothermal systems harness heat from beneath the Earth’s surface to provide reliable, low-carbon electricity and heating. While the highest-temperature geothermal resources are found in British Columbia, Alberta, Yukon and the Northwest Territories, additional research and resource mapping are needed to reduce exploration risks and support future regulatory frameworks.
Natural Resources Canada said next-generation geothermal technologies could expand the availability of geothermal energy across more regions of the country while leveraging Canada’s expertise in drilling and subsurface engineering. The sector also has the potential to create thousands of jobs and strengthen long-term energy security.
The geothermal funding announcement was part of a broader $28.9-million investment in 12 clean energy projects through the Energy Innovation Program. The funding package includes $16.9 million for carbon capture, utilization and storage (CCUS) projects, $9.2 million for renewable energy initiatives and $2.8 million for smart grid technologies.
“Canada is scaling up clean energy while strengthening our electricity grid and responsibly growing our conventional energy industry,” Hodgson said.
Among the recipients is the Petroleum Technology Research Centre in Regina, Saskatchewan, which will receive $4.8 million to study the behaviour of carbon dioxide stored in deep geological formations. The project includes drilling a new test well and collecting core samples, fluid samples and well log data to improve understanding of how CO₂ plumes move underground.
Federal officials say the work will help reduce the technical, environmental and financial risks associated with large-scale geological carbon storage projects and regional storage hubs.
Another recipient, Kingston-based CO₂L Technologies Inc., received $580,000 to scale up an electrochemical system capable of converting captured carbon dioxide into commercially useful products, including formate salts, formic acid and desiccants.
The resulting products have applications in industries ranging from cement manufacturing and de-icing to agriculture, chemical production and humidity control.
Ottawa introduces new bill to advance First Nations water governance
The federal government has tabled new First Nations clean drinking water legislation that it says builds on more than six years of consultations, engagement and parliamentary study of the former Bill C-61, which terminated after Parliament was prorogued in 2025.
Indigenous Services Minister Mandy Gull-Masty vowed last summer that a new bill would replace C-61, and called Bill C-37, the new First Nations Clean Water Act, a legislative framework to support safe drinking water in First Nations communities, “while recognizing First Nations jurisdiction over water on their lands and holding governments to account,” she told reporters.
“This is a time for action, with First Nations guiding the way,” Gull-Masty announced in a statement. “For too long, many First Nations communities have gone without the protections that help keep drinking water safe. That needs to change.”
Gull-Masty also announced $4.6 billion dedicated to First Nations water and wastewater infrastructure, “because legislation alone is not enough,” she said. The legislation was introduced in the House of Commons just days before MPs’ summer break, meaning the bill won’t be debated before the fall.
Assembly of First Nations National Chief Cindy Woodhouse Nepinak released a statement on June 16 to explain that Bill C-37 is missing “key elements” that need to be explored through additional consultation with First Nations. She pointed to weak source water protection, ambiguity around the definition of First Nations lands, and a lack of sustainable funding.
“We expect there will be full Parliamentary committee hearings on the bill this fall,” Woodhouse Nepinak announced. “We also encourage committee members to actually visit First Nation communities impacted by these boil water advisories as part of their work. To appreciate the impact this has on our communities, the committee should see for themselves.”
Assembly of First Nations announced that it will add the legislation to its Annual General Assembly agenda in Ottawa July 14-16. This feedback will inform the AFN’s full response this summer, Woodhouse Nepinak noted.
Indigenous Services Canada reports there are currently 38 long-term drinking water advisories in 36 communities, mostly in Ontario.
Former Minister of Indigenous Services, Patty Hajdu, introduced the last First Nations Clean Water Act, Bill C-61, on December 11, 2023, more than a year after the government repealed the 2013 Safe Drinking Water for First Nations Act, which was heavily criticized by many Indigenous communities.
That legislation was also one of Ottawa’s first co-developed bills with First Nations as part of the terms of the $8-billion drinking water class action settlement for First Nations in December 2021.
Notably, the bill would establish national principles and minimum service standards for drinking water and wastewater systems on First Nation lands, support the creation of a First Nations-led water commission, and require the development of a federal regulatory framework. It also commits the government to progressively realizing the human right to safe drinking water by addressing regulatory gaps and co-developing a long-term funding framework with First Nations.
The proposed legislation aims to affirm First Nations’ inherent right to self-government in matters related to water, source water protection, drinking water, wastewater and associated infrastructure. It also seeks to ensure sufficient water supplies to meet community needs, including drinking, sanitation, emergency management, cultural and spiritual uses.
All decisions made under the legislation would be guided by the principles of the United Nations Declaration on the Rights of Indigenous Peoples, including free, prior and informed consent, according to the backgrounder. The bill would also facilitate collaboration among First Nations and federal, provincial, territorial and municipal governments on source water protection planning.
Xylem to deliver integrated water reuse system for Dow’s Path2Zero project in Alberta
Xylem has secured a long-term agreement with materials science company Dow to design, build and operate an advanced industrial water management system at Dow’s Fort Saskatchewan complex in Alberta, supporting expanded operations associated with the company’s Path2Zero project.
Under the agreement, Xylem will provide an end-to-end solution encompassing engineering, system design, construction and ongoing operations. The integrated system will manage the site’s full water cycle, including raw water treatment, industrial water supply and large-scale water reuse.
The water system is expected to begin operating in August 2028. Dow officials say the Path2Zero expansion project will create the world’s first net-zero emissions integrated ethylene cracker and derivatives site with respect to scope 1 and 2 emissions. Dow says the facility is expected to add approximately 1.8 million metric tonnes of ethylene capacity in a phased manner through 2030 for customers and joint venture partners around the globe.
The project includes a brownfield expansion and retrofit of Dow’s existing manufacturing site in Fort Saskatchewan.
“This agreement represents a major milestone for Xylem,” said Rodney Aulick, executive vice-president and president of Water Solutions and Services at Xylem in a June 8 press release. “It reflects the strength of our long-standing relationship with Dow and the deep trust we’ve built with a key customer over time.”
Xylem said the system will employ multi-stage treatment processes to convert water from cooling and industrial operations into reusable, high-quality supply. The company will be responsible for the complete process design as well as long-term operation of the facility, providing Dow with a single partner accountable for water quality, system performance and supply reliability.
The system will:
- Treat raw water for industrial use;
- Recover and treat water from cooling and industrial processes for reuse; and
- Optimize performance through long-term operational management.
According to Xylem, the system spans a large and complex industrial site and represents a shift toward fully integrated water management models that combine treatment infrastructure with operational accountability.
A key feature of the project is its integrated water reuse capability, which is expected to significantly reduce freshwater withdrawals by transforming process water into a reusable resource.
Xylem said the approach is intended to improve operational resilience while reducing pressure on local water resources. The project also highlights a growing trend toward circular water management strategies in large industrial facilities, where water reuse is increasingly being adopted to address resource constraints and sustainability goals.
Province establishes new compliance, enforcement agency for natural-resource sector
Several provincial compliance, enforcement functions consolidated into unified organization
The Province is creating a unified agency to bring together several compliance and enforcement functions from across the natural-resource sector, enhancing environmental protections and supporting a more fair and predictable business environment.
The BC Compliance and Enforcement Agency (BC-CEA) will take effect Wednesday, July 1, 2026. By consolidating several enforcement functions from natural-resource ministries, the change will improve consistency and timeliness of services, enhance accountability, and achieve efficiencies by bringing enforcement, compliance and investigations, as well as corporate and digital services, into a single integrated model that supports more co-ordinated operations, better data alignment and stronger, more consistent enforcement.
The new agency will operate within the Ministry of Environment and Parks, and will bring together several compliance and enforcement functions from across the natural-resource sector, including:
- BC Conservation Officer Service (Ministry of Environment and Parks)
- Natural Resource Officer Service (Ministry of Forests)
- Compliance and Environmental Enforcement Branch (Ministry of Environment and Parks)
- Compliance and Enforcement (Environmental Assessment Office)
- Service Transformation Branch (Ministry of Environment and Parks)
- Regulatory Effectiveness and Sector Integration Branch (Ministry of Environment and Parks)
The BC-CEA will also take on administrative monetary penalties for the Ministry of Mining and Critical Minerals, and BC Parks, as well as licensing sanctions under the Wildlife Act for hunters and anglers.
This change is structural and administrative. It centralizes leadership, governance and oversight, while maintaining existing statutory authorities and front-line service delivery.
The functions of these entities, such as enforcement, compliance and investigations, as well as support for policy and corporate services, will operate as part of one integrated agency with more than 400 staff.
‘Mayday to Ottawa’: $400M carbon capture facility could be cancelled after changes to Alberta’s carbon tax
Smith-Carney deal means carbon capture and storage projects are ‘not viable,’ says company developer
A shovel-ready, $400-million facility proposed for Edmonton that would convert landfill waste into electricity could be cancelled after a recent carbon tax agreement between the Alberta and federal governments.
The national industrial carbon price was supposed to rise to $170 a tonne by 2030, but a revised deal last month by Prime Minister Mark Carney and Alberta Premier Danielle Smith means the price would instead reach $130 a tonne by 2040.
For Varme Energy, the policy change is putting its proposed waste-to-energy project on life support. The facility would capture greenhouse gases and store them underground. The project would also generate carbon credits that could be sold. However, a lower carbon price means those credits would be worth less.
Without further government policy changes over the next few months, Varme Energy chief executive Sean Collins warns the company may have to pull the plug on the project.
“Unfortunately, nobody has runway forever,” said Collins. He now describes the company as facing a “very challenging” financial situation.
Carney and Smith signed the deal as part of a broader agreement between the governments to reduce methane emissions, expedite the regulatory process for major projects in the province and pursue a new oil export pipeline to the West Coast.
Some large industrial companies had pushed for a lower carbon price to avoid higher costs and remain competitive compared with counterparts in the United States, which do not have to pay a carbon tax.
In Alberta, a carbon price that rises more slowly and does not climb as high will result in less investment in emissions reductions, said Ross Linden-Fraser, a researcher with the Canadian Climate Institute.
“It’s just the reality of what happens when you set a lower value on one of the main sources of revenue for emissions-reducing projects,” he said.
Lower target price
Varme Energy already has agreements in place with the City of Edmonton’s landfill, as well as provincial permits to produce electricity. The proposed project has received funding from the Alberta government and support from the federal government’s Canada Growth Fund to ensure the carbon credits are sold for at least $85 a tonne.
Still, the project has an expected operating cost of about $118 a tonne, said Collins. That would have made financial sense under the federal government’s previous plan to raise the price to $170 a tonne by 2030.
“We’re calling a mayday to Ottawa and we hope they listen,” said Collins. He said the federal government’s message should be: “Ottawa: We have a revenue problem. And the solution to a revenue problem is revenue.”
Varme Energy is a subsidiary of a Norwegian-based clean energy company that has developed similar projects to divert waste from landfills. Instead, the garbage is converted into steam to generate electricity.
The proposed project aligns with the federal government’s priorities of attracting foreign investment, reducing emissions and producing clean electricity, said Collins.
Carbon capture projects vary in size and in operating cost. For instance, a higher concentration of emissions in a smokestack can reduce the cost of capturing them, while expenses can rise if the carbon dioxide must be transported by pipeline before being pumped underground for storage.
Currently, Alberta’s carbon price is $95 a tonne. However, polluters can also purchase carbon credits on an open market, where the effective price is much lower — around $25 to $40 a tonne.
The new policy will introduce a price floor for those credits, beginning at $60 a tonne in 2030 and rising to $110 a tonne by 2040. The federal government says that minimum price should give companies confidence to build in Canada.
“The agreement reflects a shared commitment by both governments to a strong and predictable carbon market that supports investment, reduces emissions, and keeps Canadian industry competitive,” said Emily Jackson, a spokesperson for the federal environment minister, in an emailed statement.
‘Not viable’
Varme Energy is not alone in facing financial pressure following the changes to Alberta’s industrial carbon price, with other carbon capture companies pushing both levels of government for additional support.
“That change in schedule and the lower price makes pretty much every carbon capture and storage project in Canada not viable,” said Jamie Stephen, managing director of Torchlight, a Nova Scotia-based bioenergy developer.
The company is developing a $2-billion carbon capture and storage project at a pulp mill near Hinton, west of Edmonton. The facility is designed to permanently store about 1.6 million tonnes of carbon dioxide every year, which Stephen said would have a greater climate impact than Canada’s entire battery-electric vehicle fleet.
The federal and provincial governments offer tax credits and other incentives to reduce construction costs for such facilities, but Stephen said that does not make much difference if the carbon credits are worth so little.
“It doesn’t matter how large the capital support is, if there’s nobody to buy the product, there is no business,” he said.
The carbon capture sector is hopeful the federal government will make other policy changes that would allow companies to sell carbon credits into different markets to get a better price, including in the United States, internationally or through Canada’s own market linked to the Clean Fuel Regulations.
As Alberta and the federal government implement their new agreement, the sector will also be watching key details, including how strictly credits are calculated and whether polluters can use loopholes to reduce their carbon tax obligations.
For Collins, with Varme Energy, time is running out.
If the right fiscal policies are introduced to support the sector, he said construction on the proposed project could begin.
However, if the status quo remains, he will likely have to cancel the project this fall.
“It’s years of your life and your team’s life put into developing a project that you’re all really, really passionate about,” he said. “We all get up everyday believing in the value proposition of a landfill-free future for Canada and our role in in helping enable that.”
Remediation Technology News and Resource
(The following are selected items from the US EPA’s Tech Direct – http://clu-in.org/techdirect/)
Upcoming Live Internet Seminars
June 25 – FY26 M2S2 Webinar: Data Usability Assessments
July 16 – SRP Progress in Research Summer 2026 Webinar Series: Session II
July 21 – ITRC’s Vapor Intrusion Toolkit Resources – An Orientation
July 22 – Federal Facilities Academy: Land Use and Onsite/Offsite Determinations
Aug 26 – Federal Facilities Online Academy: Groundwater Policy Overview
New Documents and Web Resources
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New ESAA Member
ESAA welcomes the following new member. If you are not a member of ESAA you can join now via: https://esaa.org/join-esaa/
Full Member:
Dana Williamson
dana.williamson@reddeer.ca
Paige Murphy
pmurphy@brokerlink.ca
–
Green Infrastructure Partners Inc.
www,gipi.com
1-519-501-0502
Devin Rosnak, Director, Business Development
drosnak@gipi.com
Student Member:
Aziza Ahsan
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Current Listings:
- Intermediate Accountant – Summit, An Earth Services Company
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