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Carbon tax revenues reallocated to new St. Marys kiln

Carbon tax revenues reallocated to new St. Marys kiln

ST. MARYS, ONT. — The federal government has announced funding of $2.2 million to St. Marys Cement Inc. (Canada) to install new cement kiln infrastructure that uses lower-carbon fuels, including discarded plastics.

The spending is a reallocation of funds via a revenue-return program called the Decarbonization Incentive Program.

The program repurposes revenues taken from heavy industry through the price on high carbon usage towards eligible facilities for energy-efficiency and emission-cutting projects, explained a release.

The new kiln process will replace up to 30 per cent of the high-carbon fuels required for the cement manufacturing process.

St. Marys, based in St. Marys, Ont., is a division of the Votorantim Cimentos group. As a signatory to Canada’s Net Zero Challenge, St. Marys Cement has adopted a plan to transition its facilities and operations to achieve net-zero emissions by 2050.

Canada’s industrial pollution pricing system is called the Output-Based Pricing System.

In 2023, Votorantim Cimentos reduced CO2 emissions by 15 per cent compared to 2010.

“At Votorantim Cimentos, we are determined to be part of the solution to reduce the planet’s greenhouse gas emissions by supporting the circular economy, as well as by investing in new technologies and innovation and pursuing a renewable energy matrix. St Marys Cement is committed to ambitious science-based target initiative goals, including net-zero concrete by 2050, achieving 556 kilograms of CO2 per tonne of cementitious material,” stated Votorantim Cimentos North America CEO Jorge Wagner in a statement. 

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