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.
Located 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.
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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.
