Varennes Cellulosic Ethanol LP and Recyclage Carbone Varennes, a Varennes, Québec-based green energy supplier, obtained CCAA protection on March 11, 2025 due to financial challenges, including $180 million in cost overruns and a funding shortfall. The company was developing a $1.5 billion biofuels and electrolyzer plant, which is 75% and 45% complete, respectively. Financing came from government subsidies, secured debt (Canada Infrastructure Bank, IQ Financing), and equity partners (Proman Services Canada, Shell Canada, IQ Equity, Suncor Energy). Proman, disputing a December 2024 capital call, withdrew its $88 million commitment and initiated arbitration, with the company counterclaiming. The CCAA proceedings aim to run a Sales and Investment Solicitation Process (SISP), with Barclays Capital as financial advisor and EY as monitor.

Legal advisors include Stikeman Elliott (company), Fasken (monitor), McCarthy Tétrault (IQ), Davies (RBC), Lavery (Groupe Promec), Osler (Proman), and Langlois (Hydro Québec).