Economy Minister Christine Fréchette refrains from discussing the uncertain future of hundreds of millions of public funds involved in the Recyclage Carbone Varennes (RCV) project.
Recently, it was disclosed that StormFisher, a Canadian-American company, has proposed a meager $17.5 million to acquire the plant, which had reached 75% completion before the company filed for insolvency. The initial projected investment for the plant was $1.5 billion, after facing cost overruns from the original estimate of $1.3 billion.
Fréchette, during her visit to Varennes, declined to specify the exact financial loss Quebec might incur, despite public knowledge of Quebec’s $365 million commitment in loans and preferred shares, along with Ottawa’s $187 million in grants and a $277 million loan from the Canada Infrastructure Bank.
The project, jointly owned by oil and gas giants Suncor, Shell, and Proman, as well as Investissement Québec, failed to meet expectations, resulting in a significant portion of the pledged $829 million in public funds being spent, with little chance of recovery.
Originally designed to produce 125 million liters of biomethanol for marine use by recycling over 200,000 tons of waste annually, the project faced setbacks leading to its eventual downfall. StormFisher’s proposal to produce “e-methanol” from green hydrogen marks a new direction for the plant.
Despite StormFisher’s offer, Fréchette clarified that Quebec is not endorsing the $17.5 million bid and is awaiting the completion of the ongoing process before making a decision. Creditors have sought an extension to evaluate asset liquidation possibilities, though it is unlikely that creditors, including Quebec City and Ottawa, will recoup their investments.
