Shuttered Edmonton chemical plant faces enforcement order over contamination
Enerkem Alberta Biofuels must remediate site with methanol and petroleum hydrocarbons in soil and groundwater.
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An environmental enforcement order has been issued against the shuttered Enerkem Alberta Biofuels facility in northeast Edmonton for failing to safely decommission the site and address lingering chemical contamination.
Alberta Environment and Protected Areas issued the order on June 5, alleging that the former operators have left toxic chemicals in tanks, abandoned industrial waste containers, and improperly stored contaminants that threatened to spill. Recent environmental testing shows soil and groundwater contamination exceeding safe environmental guidelines, including methanol — a toxic flammable solvent — and petroleum hydrocarbons left by plant operations.
The biorefinery operated on city-owned property for more than a decade, using a patented gasification process to convert non-recyclable municipal solid waste into renewable chemical methanol and other biofuels. Following years of financial and legal challenges, the facility shut down in January 2024. The Quebec-based company later entered insolvency protection in May 2025 and has since been extensively restructured and taken over by its major lenders.
Jason Unger, executive director of the Environmental Law Centre of Edmonton, said the case highlights the need for stronger provincial and municipal oversight of industrial facilities. He flagged significant concerns about remediation timeline, funding, and execution given Enerkem's altered financial status. "That is just one of the main concerns in terms of remediating the plant in a timely fashion and ensuring that the public doesn't end up having to pay for it," Unger said.
The enforcement order names Enerkem Alberta Biofuels G.P. Inc., Enerkem Alberta Biofuels LP, a former company director, and Deloitte Restructuring Inc., which was appointed as court-appointed monitor when the company entered insolvency protection. Company officials have not responded to requests for comment. Deloitte declined to comment, directing reporters to its public court records.