A year after its announcement by the federal government, the “Canada Growth Fund”, with $15 billion to invest in private sector projects to reduce carbon emissions, comes into play with the making of a first investment .
The Fund (FCC), whose management has been entrusted to the Montreal firm Investissements PSP, which already manages 243 billion in federal employee pension plan assets, is investing 90 million in a Calgary company, Eavor Technologies.
According to the FCC, this company has developed an innovative closed-loop geothermal technology, called “Eavor-Loop”, which makes it possible to produce “heat and electricity in a clean and reliable manner”.
This $90 million injection from the CCF will help Eavor Technologies “maintain and support new permanent jobs in Alberta,” while ensuring the company’s workforce and technological know-how remain based in Canada for the long term.
But for the managers of the FCC, in particular its president and CEO, Patrick Charbonneau, an experienced senior executive at PSP, this investment in Eavor Technologies represents the first step in a series of transactions to come over the coming months .
“However, with this type of specialized investment fund, it is always the first year and the first billion that are the most difficult to achieve. In the case of the FCC, because we are arriving with new financial products, in addition to a risk profile and a specific mandate, we have had a lot of work to do since June to introduce ourselves to the main business stakeholders in the area of decarbonization of the economy. »
However, these efforts quickly bore fruit for the team of 14 analysts and investment managers assembled and led by Mr. Charbonneau at PSP’s administrative headquarters in Montreal. This is an operational cohabitation, while the selection and management of the Fund’s investments are independent of PSP and the federal government.
“The reception has been very positive among our main contacts and potential investment partners, especially as we arrive with a team of people with experience in investment analysis and management. This has allowed us to move forward quickly in identifying projects and companies in the decarbonization technology sector that are most likely to benefit from our financial support to continue and accelerate their development. »
Since taking office in June, the managers of the Canada Growth Fund have included around sixty projects and companies on their list of potential investments. And from this list, around twenty are considered priorities to be carried out over the coming months.
“These projects and companies are located in Quebec and elsewhere in Canada. And the amount of these potential investments varies significantly depending on the targeted sectors of activity,” indicates Patrick Charbonneau without being able to reveal more.
“In the cleantech sector, for example, it could be a few tens of millions of dollars. But in the decarbonization infrastructure sector, I expect it to be more in the order of a few hundred million per project. »
