March 27 (Reuters) - Canada Infrastructure Bank (CIB) said on Monday it would invest C$277 million in a carbon recycling facility in Quebec run by a joint-venture backed by Shell and Suncor Energy Inc.

The facility will generate hydrogen and oxygen by using electrolysis to convert non-recyclable waste and residual biomass into biofuels with a capacity of up to 130 million litres annually.

Proman and the government of Quebec are also partners in the joint venture running the facility in Varennes. The project is expected to cost C$1.2 billion.

Construction at the C$1.2 billion has already begun and commercial output is expected to begin in 2025. (Reporting by Arshreet Singh; Editing by Pooja Desai)