The Short Report: December 25, 2024

GOVERNMENT FUNDING

The Canada Infrastructure Bank (CIB) reached financial close on a $45.8-million loan to support development of the 34-megawatt Benjamin Mill wind energy farm in Hants County, N.S. The project is a partnership between independent power producer Natural Forces and Wskijnu’k Mtmo’taqnuow Agency, a corporate body wholly owned by the 13 Mi’kmaq bands in Nova Scotia. The loan will help pay for the installation of eight wind turbines and associated electrical infrastructure, CIB said. Partner revenues from a power purchase agreement with Nova Scotia Power Inc. will repay the CIB loan. The project is expected to be commercially operational in late 2025. The Benjamin Mill project also received $25 million in funding from Natural Resources Canada’s Smart Renewables & Electrification Pathways program. Canada Infrastructure Bank

Natural Resources Canada (NRCan) announced that Vancouver-based Foran Mining Corporation was conditionally approved for an investment of up to $20 million through the Critical Minerals Infrastructure Fund, a key program under the Canadian Critical Minerals Strategy. The funding will enable the construction of a hydro transmission line to connect to clean hydroelectricity, an on-site substation and electric vehicle charging infrastructure at Foran’s McIlvenna Bay mine project in east-central Saskatchewan, with the goal of fully electrifying the mine. This infrastructure will support the development of the McIlvenna Bay site targeting carbon-neutral copper production, supporting Saskatchewan’s position as a premier mining jurisdiction. NRCan

Natural Resources Canada (NRCan) announced up to $10 million in infrastructure funding – through the Critical Minerals Infrastructure Fund – pending final due diligence, to Montreal-headquartered Torngat Metals for its Strange Lake Northern Transportation Infrastructure Project. With this funding, Torngat Metals will undertake pre-development activities related to the construction of a road of about 170 kilometres in northern Quebec and Labrador and new port facilities on the coast of Labrador. These activities will include engagement with Indigenous communities, environmental reviews and other planning and design work. This new access road will allow rare earth elements (REEs) – namely dysprosium, neodymium, praseodymium and terbium – mined in Nunavik, Quebec, to reach new port facilities in Labrador for shipping to separation and processing facilities. REEs are necessary components in diverse industrial and high-technology applications, including electronics, clean energy, aerospace, automotive and defence. Through this project, Canada can become a global supply chain leader in rare earth elements at a time where there is a critical shortage of heavy rare earth elements outside China, NRCan said. NRCan

The Government of Québec announced it will provide $300,000 annually to support the creation of a new research, innovation, and training centre in the Sherbrooke region. The centre will be supported by the Cégep de Granby, the Cégep de Sherbrooke, the École de technologie supérieure, the Centre de collaboration MiQro Innovation, and the Université de Sherbrooke. Pascale Déry, Quebec’s minister of Higher Education, said the centre will combine college and university training with research and innovation to drive advancements in cutting-edge technological fields. Academica Group

Natural Resources Canada’s (NRCan) Deep Retrofit Accelerator Initiative (DRAI) opened a second application intake to support deep retrofit capacity-building activities that reduce barriers to deep retrofits and support deep retrofit market transformation. The total amount of funding available for this intake is about $8 million over two years (2025/26, 2026/27). The projects must focus on at least one of the following priorities:

• Develop tools, resources and/or other capacity-building activities to support the Canadian financial sector in efforts to finance deep retrofit projects.
• Develop tools, resources and/or other capacity-building activities to support workforce development and capacity related to deep retrofits.
• Develop tools, resources and/or other capacity-building activities to support the development of deep retrofit business cases (not limited to a specific project or building owner/manager).

NRCan defines “deep retrofit” as a holistic approach to upgrading buildings and optimizing energy and carbon performance. A deep retrofit involves upgrades to multiple building systems and equipment, such as:

• replacing roofs.
• adding, upgrading or rearranging windows.
• adding or increasing insulation.
• replacing or improving building envelope or cladding.
• replacing the HVAC system with a more efficient one.
• switching from fossil fuels to electricity or other energy sources for space and water heating.
• upgrading the lighting system or using daylighting and controls.
• installing or harnessing renewable energy systems.
• installing or upgrading building control or energy management systems.
• other measures that improve the energy efficiency of the building.

Eligible recipients are:

• Legal entities validly incorporated or registered in Canada, including for-profit and not-for-profit organizations.
• Provincial, territorial, regional and municipal governments and their departments and agencies, including public sector bodies, crown corporations or boards that are established by or under provincial or territorial statute or regulation or are wholly owned by a province, territory or local or regional government.
• Indigenous governing bodies, for-profit and not-for-profit organizations and communities.

Eligible activities funded include, but are not limited to:

• Developing best practice guides, third-party verification protocols, standards and other tools regarding the financing, implementation or evaluation of deep retrofits, that are not limited to one jurisdiction and can be utilized across Canada.
• Developing “how to” guides, modelling software, protocols, standards, templates, case studies and other tools to support deep retrofit business plans.
• Developing curricula, training materials or education programs for trades, architects, engineers, energy managers or other relevant fields that are under-capacity or that require new skills or information to better participate in the deep retrofit ecosystem.
• Developing and refining financial models and tools to assist lenders and investors in evaluating the financial viability of deep retrofit projects.
• Developing and implementing tools that help financial institutions assess and mitigate associated risks with deep retrofit projects.
• Designing and implementing outreach programs to promote careers in skilled trades related to deep retrofit projects.
• Developing programs/initiatives to attract and retain skilled tradespeople in the retrofit sector.
• Developing standardized templates and guidelines and other tools for developing business cases for deep retrofits that can be used across various market segments.

For all enquiries and to request the application package, email drai-iarm@nrcan-rncan.gc.ca. Applications must be received by February 12, 2025, 11:59 p.m. ET. Cleantech Canada

Crown corporation BC Hydro added a new solar energy project to the clean energy projects selected to advance from its call for power. On December 9, 2024, the Government of British Columbia announced that BC Hydro has selected nine wind energy projects through its 2024 call for power that will supply renewable, affordable electricity to growing communities throughout B.C. While BC Hydro was preparing the public disclosure of the successful projects, one of the projects voluntarily withdrew and was not included in the announcement. BC Hydro has offered a 30-year electricity-purchase agreement to the next-highest evaluated project in order to maximize the power generation available through this call for power. The newly added project is the ShTSaQU Solar Project in the southern Interior near Logan Lake, which will provide 104 megawatts of capacity. The independent power producer partner is BluEarth Renewables Inc. and the First Nation partner is Oregon Jack Creek. Collectively, these 10 clean and renewable projects will generate approximately 5,000 gigawatt-hours of electricity annually, enough to power 500,000 new homes, and will increase BC Hydro’s current supply by eight percent. The projects’ development and construction are expected to generate between $5 billion and $6 billion in private capital investment. Govt. of B.C.

The City of Calgary’s Opportunity Calgary Investment Fund is investing up to $709,000 over the next three years in the Southern Alberta Institute of Technology’s (SAIT) Aerospace Composite Materials Lab (ACML) to strengthen Calgary’s aerospace sector. This investment will enable the ACML at SAIT to foster growth in Calgary’s aerospace industry by using cutting-edge manufacturing and testing equipment at its facility. The lab will facilitate collaboration between industry experts, researchers, students and SMEs to provide innovative solutions to aerospace’s biggest challenges. including improving aircraft performance and reducing environmental impacts. The ACML is expected to train 21 individuals and support 25 companies over its duration, with students from SAIT and other institutions participating in hands-on, applied research projects for a minimum of six months. These efforts will directly address labour shortages and skill gaps in the industry by providing high-quality training to the next generation of aerospace professionals. Calgary Economic Development

RESEARCH, TECH NEWS & COLLABORATION

The ALS Society of Canada and Brain Canada invested more than $700,000 in funding for the seven recipients of the 2024 ALS Canada-Brain Canada Clinical Research Fellowship and Trainee Awards. These grants are designed to foster the development of clinical expertise and research innovation, enabling early-career clinicians and researchers to enhance their skills and increase the understanding of amyotrophic lateral sclerosis, a fatal neurodegenerative disease that affects nearly 4,000 Canadians. The funding includes a $174,000-clinical research fellowship, a total of $520,000 in trainee awards, three doctoral awards of $75,000 each over three years, and two post-doctoral awards – one for $165,000 over three years and one for $55,000 over one year. This year marks a decade since ALS Canada and Brain Canada united to support promising ALS researchers, fueled by the generous contributions of Canadians during the ALS Ice Bucket Challenge. Brain Canada  

Saskatchewan Pulse Growers (SPG) announced more than $3.67 million for five new weed science research projects focused on pulse crops. Winston van Staveren, SPG Chair at the University of Saskatchewan, received just over $2.4 million for his project, titled “Framework for a collaborative kochia management program in pulses.” The project will look at using herbicides in novel ways and combining them with non-chemical control methods to control kochia, a tumbleweed that is both salt- and drought-resistant and prolific throughout most of the cropped area of Saskatchewan. The overall program will run for six years, including field seasons from 2025 to 2029, building on the work of previous SPG-funded weed programs. Dilshan Benaragama, assistant professor at the University of Manitoba, received $686,000 to develop weed management strategies for pulse and soybean crops using herbicides, cultural practices and drone spot spraying. University of Saskatchewan

Toronto-based Ukko Agro Inc. is harnessing machine learning and AI to optimize nitrogen fertilizer application on the farm, minimizing input costs and greenhouse gas (GHG) emissions. The company’s project, using its Integrated Real-Time Nitrogen Guidance System for Optimizing Canadian Prairie Agriculture, will allow agronomists to guide farmers on in-season nitrogen use in precise locations for target yield goals, reducing GHG-producing applications. One of Ukko’s partners in this work is Montreal-based ChrysaLabs, whose soil probes are used to provide data on real-time nitrogen levels, which is then communicated to Ukko’s platform, generating recommendations on appropriate inputs. The platform effectively creates a 2-D digital twin of the agronomist’s client fields, including data on nitrogen use – how much was applied to what soil on what date. Additional relevant data such as weather and moisture levels are added, allowing the system to make predictive recommendations based on various factors. ChrysaLabs’ probes are then used to evaluate the accuracy of the Ukko platform’s analysis, allowing Ukko’s team to fine-tune the AI-generated results and continually improve outcomes. The Canadian Agri-Food Automation and Intelligence Network (CAAIN), through Innovation, Science and Economic Development Canada, granted $768,717 to the more than $2.33-million project. Overall, CAAIN is spending $33 million on 36 projects with a combined total value of roughly $100 million. Western Standard

The Canadian Food Innovation Network (CFIN) awarded a total of $500,000 to 11 foodtech projects across Canada. The funding, from CFIN’s Innovation Booster Program, is set to be matched by industry for a total of $1 million in investments. The projects span a wide range of innovations, including the digitalization of food processing systems, enhancing the nutritional quality of alternative plant-based proteins, and product development involving sustainably sourced functional food ingredients. For example, in a project in Alberta, the company haskalife is conducting an independent clinical trial to explore the cardio-metabolic and cognitive benefits of its Pure Haskap Berry formulation in women over 35, a group at higher risk of hypertension and acuity impacts. Haskap berries are known for their high anthocyanin content and anti-inflammatory properties. Trial results are expected in 2025. In total, 61 Canadian foodtech companies have received a total of $5 million from CFIN’s Innovation Booster program since it was established as part of Canada’s Strategic Innovation Fund in 2021. Calgary.tech

Canada should focus on building utility-scale solar mega-projects to kickstart its green energy transition, according to researchers in Simon Fraser University’s (SFU) Clean Energy Research Group. The recommendation comes from a new study published in the journal Solar Compass which looks at the current state of solar power and compares the benefits of both mass-scale projects and smaller, decentralized approaches like individual homes and commercial buildings installing their own solar panels. “Solar has major advantages over wind, geothermal and nuclear power as a renewable energy source,” said Anil Hira, director of the Clean Energy Research Group (CERG) and a professor of political science at SFU. The cost for installing solar panels has fallen by an estimated 90 percent in the last decade. Solar power makes up approximately four per cent of global electricity generation, yet accounts for only 0.5 per cent in Canada. The study suggests that’s because much of the policy around solar power has focused on small-scale, decentralized residential and commercial generation. However, the authors argue that this approach doesn’t generate enough electricity to achieve a green transition, fragments the electricity system and raises equity concerns because not every area is suitable for solar power and wealthy homeowners and large companies are likely to be the only ones willing to make the long-term investments in panels and batteries. Also, costs for utility-scale solar are approximately 64 percent cheaper than residential and 50 percent cheaper than commercial solar installations, on average. Pro-active policy and financial backing from senior governments are needed to harness utility-scale solar’s potential to transition to clean energy, the report said. “Solar can help us to diversify our energy mix so we are not so reliant on hydro and reduces the intermittency problems with wind,” Hira said. SFU

The University of British Columbia (UBC) Faculty of Forestry’s Alex Fraser Research Forest (AFRF) in partnership with FPInnovations, is launching the Community Bioenergy Systems Training Program, a new training program designed to help remote and Indigenous communities transition from diesel-based energy to sustainable, wood-based biomass power. AFRF and FPInnovations built a biomass combined heat and power plant in Williams Lake, B.C., and will start offering training using their system in the new year with support from Natural Resources Canada and the Government of British Columbia. The new program trains participants to operate this type of power plant, manage woody debris supply chains for power and heat generation and develop other wood-based bioenergy systems, enabling them to return to their communities and play an active role in transforming local energy infrastructure. The program is open to participants across Canada. Individuals from Indigenous and remote communities are especially encouraged to apply. Tuition fees are waived for participants from Indigenous communities, with accommodations and meals provided at no cost for four nights in Williams Lake. Travel subsidies are also available, with amounts depending on registration and participant location, to help cover travel to and from the Alex Fraser Research Forest for in-person training. To express interest, visit the AFRF website or contact bioenergy@fpinnovations.ca UBC

Australia-based Paladin Energy Ltd. announced it received approval from Industry Minister François-Philippe Champagne, under the Investment Canada Act, to proceed with buying Kelowna, B.C.-based Fission Uranium Corp. The acquisition, an all-stock deal worth $1.4 billion when it was announced in June, is expected to close by early January 2025. Paladin Energy, whose largest shareholder is China General Nuclear Power Group, said it accepted numerous conditions to get the national security approval. These conditions include guaranteeing that Paladin won’t sell Fission-mined uranium to any new Chinese customers or bring in executives from Chinese state enterprises. Canada considers uranium a critical mineral for technology, economic growth and national security. Paladin energy

The Government of Québec will prohibit the sale and lease of 2034 and earlier-model new and used light-duty gasoline-powered cars and trucks, as of December 31, 2035. The sale of combustion engines also will be prohibited, except to replace a defective engine in a vehicle already on the road in Quebec. From January 1, 2024, marketing new or light-duty combustion vehicles of the 2035 and later model years, including hybrid and plug-in hybrid models, will be prohibited. Light-duty combustion vehicles from model years 2034 and earlier already registered in Quebec will be able to continue to circulate and be resold. Emergency vehicles, motorcycles and off-road vehicles are among the vehicles exempt from the ban. The measure is part of the province’s transportation sector's efforts to reduce greenhouse gas emissions and aims to accelerate the energy transition, in line with the objectives of the 2030 Plan for a Green Economy and Quebec's international commitments. Govt. of Québec

Volkswagen Group, through its holding and financing company, Volkswagen Finance Luxemburg S.A., is buying a 9.9-percent share in Vancouver-based Patriot Battery Metals for $69 million. Volkswagen’s PowerCo SE subsidiary will also buy spodumene concentrate (used to make lithium batteries) from Patriot’s lithium project in Quebec. The spodumene concentrate will supply PowerCo’s battery cell production activities in Europe and North America, including the company’s battery cell factory in St. Thomas, Ont. Patriot Battery Metals

Saint-Jérôme, Que.-based Lion Electric Company, an all-electric medium- and heavy-duty vehicles manufacturer, was granted protection by the Superior Court of Quebec under the Companies’ Creditors Arrangement Act. Deloitte Restructuring Inc. was appointed to assist Lion Electric with its restructuring effort. Lion Electric also intends to seek recognition of the creditor-protection proceedings in the U.S. under Chapter 15 of the Bankruptcy Code. The court also approved a sale and investment solicitation process for the company’s business or assets. Opening bids are due in February and a potential auction in March. Lion Electric said it will continue day-to-day operations, including assisting its customers with the maintenance and servicing of school buses and trucks, under Deloitte’s oversight. Lion Electric hasn’t generated operating income since 2021, as the pace of EV adoption has slowed. Lion Electric

Burnaby, B.C.-based Ballard Power Systems announced orders from two bus manufacturers to supply over 90 fuel cell engines, representing approximately 6.4 megawatts of total rated power, for the European and U.K. city bus market. “These orders further validate the benefits of fuel cells as a zero-emission alternative to diesel engines and the ability of Ballard engines to deliver the demanding performance requirements of city buses,” said David Mucciacciaro, chief commercial officer at Ballard. Ballard’s zero-emission PEM fuel cells are enabling electrification of mobility, including buses, commercial trucks, trains, marine vessels and stationary power. Ballard Power Systems

Canadian Pacific Kansas City Ltd.’s (CPKC) high-horsepower hydrogen locomotive, CP 1200, successfully completed its first phase of testing which involved hauling both loaded and empty bulk trains. In September, CP 1200, along with its dedicated fuel tender CP 10001, joined a train that included three diesel locomotives and 152 loaded gondolas. Together, they pulled a fully loaded bulk train from Sparwood, B.C. to Golden, B.C. The next day, the hydrogen locomotive assisted in the return of 152 empty gondolas back to Sparwood. The tests are part of a pilot program in collaboration with Glencore Canada’s Elk Valley Resources (formerly Teck Resources Limited) to transport steelmaking coal from Glencore’s four operations in southeastern B.C. CPKC built the hydrogen locomotive by converting one of its diesel-powered units, switching out the engine and other power components. This represents the first of three testing phases designed to validate the reliability of high-horsepower hydrogen locomotives and further enhance the technology. CPKC has commissioned the construction of its first production hydrogen locomotive, which is expected to be deployed in B.C. next year. CPKC

Waterloo, Ont.-based BlackBerry Limited announced an agreement for Minnesota-based Arctic Wolf to acquire Blackberry’s Cylance® endpoint security assets for US$160 million cash, subject to certain adjustments, and approximately 5.5 million common shares of Arctic Wolf. After allowing for the purchase price adjustments, BlackBerry will receive approximately $80 million of cash at closing and approximately $40 million of cash one year following the closing. Arctic Wolf, which also has a Waterloo office, offers AI-powered security operations, delivering its solutions from a single open platform to meet customers’ needs for effective, comprehensive and reliable security outcomes. There will be no impact on BlackBerry’s Secure Communications portfolio of businesses, which includes BlackBerry® UEM, BlackBerry® AtHoc® and BlackBerry® SecuSUITE®. BlackBerry

Researchers and human-rights organizations are urging Ottawa not to sign a controversial United Nations treaty aimed at tackling cybercrime, arguing that it is “deeply flawed” and would expose Canadians to heightened risk of foreign interference and other abuses. The draft treaty, officially titled the United Nations Convention Against Cybercrime, aims to increase international co-operation to more effectively combat crimes such as human trafficking, terrorism-related offences, and drug and arms dealing. More than a dozen academics, researchers and organizations – including Amnesty International Canada, PEN Canada and OpenMedia, as well as individuals from the Citizen Lab at the University of Toronto and various other universities – have sent a letter to the federal government urging it not to adopt the treaty. Doing so would require countries to adopt new criminal offences and to undertake what the letter deems “intrusive surveillance powers and exceedingly broad cross-border law enforcement co-operation mechanisms.” The letter’s signatories are concerned that the treaty, which they describe as having sweeping powers and a lack of adequate human-rights safeguards, may allow foreign governments to abuse cross-border intelligence to engage in “domestic and transnational repression” – for instance, cracking down on political dissidents living abroad. The Globe and Mail

Most major U.S. telecommunications providers were hit with one of the worst cyberattacks in the nation’s history and wide swaths of the population’s privacy has been compromised by Chinese hackers. The hack, which officials said occurred a couple of weeks ago, involves an advanced Chinese government hacking group dubbed Salt Typhoon gaining access to at least 80 U.S. and global telecom providers in recent months. In the process, they managed to tap into the phones of major U.S. officials, including president-elect Donald Trump and vice president-elect JD Vance, as well as skim records around U.S. intelligence collection. Hackers had such wide-reaching access that officials warned last week that Americans should only use encrypted communications to prevent the hackers from listening in on their calls or reading their texts. Officials said they first discovered the hack in the spring, though the first public announcement from the federal government was in October, with warnings about the sheer scale and ongoing nature of the hacks ramping up the past two weeks. Politico

VC, PRIVATE INVESTMENT & ACQUISITIONS

San Francisco-based software analytics company Databricks raised US$8.5 billion of an expected $10 billion in non-dilutive Series J financing. Along with Thrive, the round was co-led by Andreessen Horowitz, DST Global, GIC, Insight Partners and WCM Investment Management. Other significant participants included existing investor Ontario Teachers’ Pension Plan and new investors ICONIQ Growth, MGX, Sands Capital and Wellington Management. The Databricks Data Intelligence Platform democratizes access to data and AI, making it easier for organizations to harness the power of their data for analytics, machine learning and AI applications. Databricks said it intends to invest this capital toward new AI products, acquisitions and significant expansion of its international go-to-market operations. In addition to fueling the company’s growth, this capital is expected to be used toward providing liquidity for current and former employees, as well as pay related taxes. Databricks

Canada Pension Plan Investment Board and Nordic Capital, a software private equity investor, announced a $690-million investment to purchase a minority stake in Frankfurt, Germany-based Regnology. Nordic Capital acquired Regnology, which makes regulatory reporting software for financial institutions, in 2020 and is making a new investment alongside its current ownership. Over 35,000 financial institutions, 70 regulators and tax authorities rely on Regnology’s solutions to streamline their processes, enhance data quality and improve efficiency. The funding will help Regnology expand into more international markets through organic growth and acquisitions, CPP Investments said. CPP Investments

Canadian-led, Helsinki-headquartered Hostaway announced a US$365 million strategic investment led by General Atlantic, with additional participation from PSG Equity. The funding aims to accelerate Hostaway’s expansion into international markets like France, Italy and Spain, enhance its software offerings and incorporate artificial intelligence-driven solutions. Hostaway offers a comprehensive platform for short-term rental property management, with solutions that automate routine tasks, streamline operations and provide insightful analytics. The company, whose CEO Marcus Rädar lives in Toronto, serves property managers across 90 countries. Horeca Middle East & Africa

Montreal-based Deep Sky Corp. received a US$40-million grant from billionaire Bill Gates’s Breakthrough Energy venture firm. Deep Sky is run by Fred Lalonde, an entrepreneur and founder of online travel service Hopper. Deep Sky aims to test a range of carbon removal technologies that would draw carbon dioxide directly out of the air as a way to reduce greenhouse gas emissions. The funds will be allocated to the construction of Deep Sky’s first direct-air capture plant in Innisfail, Alberta, which is expected to cost more than Cdn$100 million. Other potential carbon storage projects are in the works in Quebec. In November, RBC and Microsoft agreed to purchase 10,000 carbon credits from Deep Sky should the company manage to successfully sequester underground the captured carbon dioxide. Fewer than 30 direct air capture plants had been commissioned in the world as of April 2023, according to the International Energy Agency. Only a handful are in operation, and the largest facility captures just 36,000 tons annually. Bloomberg

French private equity firm Jolt Capital, which opened its first Canadian headquarters in Montreal this summer, is making its first Canadian investment by bringing a French semiconductor company’s headquarters to Montreal. Jolt Capital acquired some of French semiconductor firm Dolphin Design’s assets for $40 million and is relocating Dolphin’s head office to Montreal under a newly created entity, Dolphin Semiconductor. Dolphin Semiconductor, now 100-percent owned by Jolt Capital, develops intellectual property for key subcomponents of chips that power analog-to-digital devices. The acquisition covers Dolphin’s IP for power management and signal processing typically used in smart devices for voice recognition. These IP activities accounted for about 60 percent of Dolphin Design’s revenue and patents portfolio. The $40-million investment, to be provided in tranches, will support Dolphin Semiconductor’s efforts to scale, develop new semiconductor IP, and land “hyperscale, Tier 1” clients. The new Montreal company will be headed by Laurent Monge, the former president of France-based Metrologic Group, which makes software solutions for manufacturers. BetaKit

Toronto-based fund-of-funds manager Realize Capital Partners committed $32.5 million to seven fund managers through Realize Fund I as part of the federal government-backed Social Finance Fund (SFF). The recipients include Amplify Capital, Area One Farms, Flowing River Capital Partners, Heartwood Trust, Misfit Ventures, Regenerative Capital Group, and Thrive Impact Fund. Realize – a joint venture between Toronto impact investment management and advisory organization Rally Assets and early-stage venture capital firm Relay Ventures – is one of three fund-of-funds managers chosen by the Government of Canada to deploy the SFF. The SFF is a long-term, $755-million federal initiative aimed at growing Canada’s social finance market. Many of Realize’s supported funds, such as Amplify, Area One, and Thrive, are women-led while some are first-time fund managers. As part of SFF, the supported funds have a focus on impacting various social and environmental issues. BetaKit

Taykwa Tagamou Nation (TTN) in the Cochrane District of northern Ontario, invested $20 million in Toronto-based Canada Nickel Company Inc. to advance Canada Nickel’s flagship Crawford Nickel Sulphide Project while fostering economic empowerment and long-term collaboration. TTN’s investment in convertible notes in Canada Nickel will pay an annual interest rate of 4.75 percent and can be converted to common shares – giving TTN an 8.4-percent equity interest in the company. The deal is the largest funding of its kind in Canada. The deal, expected to close in January 2025, still requires the approval of the TSX Venture Exchange and other required third-party consents. Canada Nickel is developing the Crawford nickel-cobalt project near Timmins, Ont., which contains the world’s second-largest reserve of nickel. TTN is getting a seat on Canada Nickel’s board, giving the community a say in the development of the project as it moves toward production over the next three years. Nickel mined at Crawford will be earmarked for the electric vehicles industry. Canada Nickel Company

Toronto-based Starboard, which makes AI tools for freight brokers, raised $5.5 million in a funding round led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. Starboard’s AI tools reduce manual data entry, automate document generation, handle regulatory filings, follow up with vendors, and enhance real-time quoting accuracy and speed. Starboard said the funding will fuel the company’s mission to create the default digital platform for global trade, expanding its engineering team in Toronto and accelerating its AI-driven product development to simplify supply chain complexities. Starboard

Montreal-based Glen Ventures received a $5-million investment from the Eurêka investment fund to advance early-stage health care technology startups in Quebec. The Eurêka investment fund, capitalized by the Québec government, is managed and administered by Investissement Québec. Glen Ventures said the investment enables it to identify and lead financing rounds and co-invest in emerging enterprises developing health technology solutions rooted in Quebec's public research institutions. The investment also provides reserve capital strategically to support these companies as they advance to their next funding stages. Glen Ventures

Toronto-based Manulife Investment, together with its leading institutional investors, contributed US$145 million to New York-based CleanCapital for its acquisition of Kendall Sustainable Infrastructure, for an undisclosed amount. Kendall’s portfolio of 40 assets, including community solar projects, produces about 22.7 megawatts (MW) of energy combined. CleanCapital said the acquisition brings its portfolio of operating and under-construction assets to more than 240 projects totalling over 340 MW. CleanCapital said that it has committed over US$1 billion to solar and energy storage assets since 2021. CEO Thomas Byrne said growth in data centres and reshoring are driving energy demand and business. BusinessWire

REPORTS & POLICIES

Ottawa releases final Clean Electricity Regulations but Alberta government intends a court challenge

The Government of Canada released its finalized Clean Electricity Regulations and a roadmap to build more affordable, reliable and clean power to help meet the country’s growing demand.

Canada’s steady supply of clean and affordable electricity has already attracted investments from Volkswagen, Honda, General Motors, Stellantis, Michelin, and many others that are choosing to build in Canada, Ottawa said.

The government’s strategy is sending a strong market signal to investors and the electricity industry that now is the time to build more clean Canadian power for communities and industries, Ottawa said.

The criteria for the clean electricity investment tax credit were finalized in the 2024 Fall Economic Statement.

“The certainty and support these tax credits now provide to governments, utilities and independent businesses nationwide will help supercharge the construction of new clean electricity projects,” the government said.

The clean electricity investment tax credit is part of more than $60 billion in federal support scheduled over the next decade that will get more projects built faster, according to the government.

Alongside historic investments announced in recent years, the final Clean Electricity Regulations provide guardrails to ensure that new investments in power generation will support the clean grid that will be the foundation of Canada’s efforts to build a net-zero economy by 2050, Ottawa said.

The regulations are estimated to result in benefits of $3.4 billion from avoided health impacts, the government noted.

Under a scenario where electricity demand grows by about 50 percent, the regulations are expected to reduce nearly 181 million tonnes of cumulative greenhouse gas emissions between 2024 and 2050 from Canada’s electricity generation sector.

Shifting toward a low-carbon economy by 2050 is projected to create around 60,000 new job openings in Canada’s electricity sector alone from 2023 to 2050, including around 10,000 new job openings in the first five years, the government said.

Recent analysis from the Canadian Climate Institute found that switching to clean electricity will save households an average of 12 percent on their total energy spending by 2050.

The new roadmap, Powering Canada’s Future, points out that an analysis of energy affordability – conducted on behalf of the Canada Electricity Advisory Council – found that Canadians would potentially reduce their total energy-related costs by as much as $15 billion through the shift to a net-zero future.

The final regulations were shaped by rounds of extensive input over nearly three years from provincial and territorial governments, electricity providers, Indigenous peoples, labour unions, experts and everyday Canadians.

Ottawa’s roadmap points out that the federal government has jurisdiction over interprovincial power lines, nuclear power, electricity exports and electricity sector emissions, while provinces and territories hold jurisdiction over electricity planning and operations within their borders.

The federal government shares jurisdiction with provinces and territories on environmental regulations, such as those to limit greenhouse gas emissions from power generation.

Ottawa said it respects the role of provinces and territories in managing the electricity grid and supports the regional circumstances and unique needs of electricity systems across the country.

“That is why we are providing ample time to enable electricity providers to make the necessary investments and plan for the Clean Electricity Regulations’ implementation over the next decade.”

The Government of Alberta, in responding to the final Clean Electricity Regulations, said: “After years of watching the federal government gaslight Canadians about the feasibility of achieving a net-zero power grid by 2030, we are gratified to see Ottawa finally admit that the Government of Alberta’s plan to achieve a carbon neutral power grid by 2050 is a more responsible, affordable and realistic target.”

The Alberta government had complained last year that an earlier draft of the Clean Electricity Regulations would have forced Alberta to have a clean electricity grid by 2035.

But the final regulations now specify that one of the principles of the regulations is to “enable significant greenhouse gas reductions to ensure a net-zero electricity grid by 2050.”

The regulations provide a mix of compliance flexibilities and do not prescribe specific technological solutions. This enables provincial, territorial, and municipal decision-makers to choose the best solutions for their circumstances.

As electricity system operators and utilities gradually replace older units with cleaner and more efficient units, greenhouse gas emissions will decrease.

However, the final electricity regulations remain “entirely unconstitutional” as they seek to regulate in an area of exclusive provincial jurisdiction, the Alberta government said in a statement.

The regulations also require generators to meet “unreasonable and unattainable federally mandated interim targets” beginning in 2035 that will still make electricity unaffordable for Canadian families, the provincial government said.

Alberta will therefore be preparing an immediate court challenge of these electricity regulations, the government said.

“We would propose a quicker and cheaper alternative solution which involves the federal government completely abandoning any attempt to regulate or otherwise interfere with Alberta’s governance over our provincial power grid.”

The Calgary Chamber of Commerce said the final Clean Electricity Regulations (CER) have failed to take into consideration the serious concerns raised by the electricity sector regarding affordability, reliability and safety of the grid and do not account for regional differences in provincial electricity markets.

“As Canada’s only deregulated electricity market, the one-size-fits-all approach of the regulations does not adequately account for regional differences in electricity markets. and will have a greater impact in Alberta relative to other jurisdictions in the country. This is unacceptable to businesses and households across the country,” Deborah Yedlin, president and CEO of the Calgary Chamber, said in a statement.

It is the view of Calgary’s business community that the CER is unworkable in its current state and must be withdrawn to ensure affordability, reliability and safety for all Canadians and Canadian businesses, she said.

The Government of Saskatchewan also rejected the CER. "Our government unequivocally rejects federal intrusion into our exclusive provincial jurisdiction over the electricity system," Jeremy Harrison, minister of Crown Investments Corporation, said in a statement.

“The federal Clean Electricity Regulations are unconstitutional, unaffordable [and] unachievable, and Saskatchewan cannot, and will not, comply with them,” he said.

But the Canadian Climate Institute said the final CER are pragmatic, flexible and achievable, and part of a larger package of measures designed to keep electricity affordable and reliable.

“The final regulations will help provinces and territories make the necessary investments in bigger, cleaner and smarter electricity systems, while allowing some flexibility when it comes to limited use of gas generation in the interim,” Jason Dion, senior research director at the Institute, said in a statement.

“This added flexibility in design – combined with the billions of dollars in support for provinces and territories through the Investment Tax Credit for clean electricity – will make the regulations more achievable.” Environment and Climate Change Canada

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Most of North America’s power systems face resource shortfalls over the next 10 years, with Ontario, B.C., Saskatchewan and Manitoba at “elevated risk”

Most of North America’s bulk power systems (BPS) face mounting resource adequacy challenges over the next 10 years as surging demand growth continues and thermal power generators announce plans for retirement, according to a report by the North American Electric Reliability Corporation (NERC).

New solar PV, battery, and hybrid resources continue to flood electricity transmission interconnection queues, but completion rates are lagging behind the need for new generation, the report says. Furthermore, the performance of these replacement resources is more variable and weather-dependent than the generators they are replacing.

As a result, the report says, less overall capacity (dispatchable capacity in particular) is being added to the system than what was projected and needed to meet future demand.

“The trends point to critical reliability challenges facing the industry: satisfying escalating energy growth, managing generator retirements, and accelerating resource and transmission development.”

NERC’s report identifies reliability trends, emerging issues and potential risks that could impact the long-term reliability, resilience and security of the BPS.

There are no Canadian provinces characterized as being at “high risk” (falling below established resource adequacy in the next five years), according to the report.

However, B.C., Saskatchewan, Manitoba and Ontario are all deemed to be at “elevated risk” (areas meet resource adequacy criteria but extreme weather conditions are likely to cause a shortfall in reserve areas).

In Manitoba, the report identified potential resource shortfalls due to low-hydro conditions, driven by rising power demand.

In Saskatchewan, there is a risk of insufficient generation during fall and spring when more generators are off-line for maintenance.

In Ontario, reserve margins fall below reference margin levels in existing nuclear units as they undergo refurbishment and some current resource contracts expire. Demand growth is also adding to resource procurement needs.

In B.C., drought and extreme cold temperatures in winter can result in periods of insufficient operating reserves when neighbouring areas are unable to provide excess energy.

Areas in Canada with “normal” risk (expected to have sufficient resources under a broad range of assessed conditions) are Alberta, Quebec and the Maritimes.

Alberta is deemed to be at normal risk despite the Alberta government’s contention that the federal government’s Clean Electricity Regulations require generators to meet “unreasonable and unattainable federally mandated interim targets” beginning in 2035 that will make electricity unaffordable for Canadian families.

However, NERC’s report notes that natural gas-fired generators – which Alberta relies on for power generation – are a vital BPS resource. They provide essential reliability service by ramping up and down to balance a more variable resource mix and are a dispatchable electricity supply for winter and times when wind and solar resources are less capable of serving demand.

Alberta has no plans to phase out its gas-fired power generators over the next 10 years, despite the federal Clean Electricity Regulations.

NERC’s report points out that the size and speed with which data centres (including crypto and AI) can be constructed and connected to the grid present unique challenges for demand forecasting and planning for system behavior.

Additionally, the continued adoption of electric vehicles and heat pumps is a substantial driver for demand around North America.

“The aggregated BPS-wide projections for both winter and summer have increased massively over the 10-year period,” the report says.

New electricity transmission projects are being driven to support new generation and enhance reliability. However transmission development continues to be affected by siting and permitting challenges.

Of the 1,160 projects that are under construction or in planning for the next 10 years, 68 projects totaling nearly 2,000 kilometres of new transmission are delayed by siting and permitting issues, according to NERC’s report. NERC

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Canada’s national greenhouse gas emissions fall to lowest level in 27 years, federal government says

Canada’s greenhouse gas emissions have dropped to their lowest level in 27 years except for the COVID pandemic years, according to the Government of Canada.

Based on preliminary data, Canada’s economic sector emissions dropped year-over-year between 2022 and 2023, to 694 million tonnes (megatonnes, or Mt), a drop of six Mt.

This is equivalent to taking over 1.8 million cars off the road for a year, Ottawa said. Canada’s emissions are now the lowest they have been in 27 years, excluding the COVID pandemic years, and significantly lower than pre-pandemic levels.

In 2015, Canada’s emissions were projected to increase by nine percent by 2030 when compared with 2005 levels.

The preliminary data from the National Inventory Report ahead of its publication in the spring of 2025 confirms Canada is now successfully bending the emissions curve, the government said.

Preliminary data includes:

• Between 2005 and 2023, the emission intensity of Canada’s economy was cut by 34 percent.
• Since 2005, emissions from electricity decreased by 67 megatonnes (-58 percent), driven by the phase-out of coal-fired electricity generation.

The government said in 2025 its focus on climate action will include finalizing emissions-reduction measures in the oil and gas industry.

Ottawa also intends to finalize the investment tax credits, which will support investments in technologies that will reduce emissions. Environment and Climate Change Canada

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Senate committee calls for federal government actions to protect Canada’s critical infrastructure from climate change impacts

Canada is not ready to face the consequences of climate change on its transportation hubs and supply chain network, which threatens public safety and the country’s long-term economic prosperity, according to a report by the Senate Committee on Transport and Communications.

Critical transportation infrastructure across the country is vulnerable to extreme weather events, the report says.

“Current efforts are scattered; there is no national coordination, no concrete plan and no predictable funding, and yet there is an urgent need to take action,” the report says.

Climate change, including the increasing incidences of extreme weather events, is already posing a threat not only to the movement of people and goods but also to public safety, national security and Canada’s future long-term economic prosperity, according to the report.

The committee’s report, based on hearings held over two years, focuses on four case studies across the country: the Chignecto Isthmus in Eastern Canada, Canada’s North, Vancouver’s airport and marine port, and the Great Lakes St. Lawrence Seaway.

Floods, forest fires, landslides, storms and melting permafrost are just some of the climate threats facing these vital national transportation links.

In the East, a vital rail corridor on the Chignecto Isthmus connecting Nova Scotia with the rest of mainland Canada is in danger of washing away as sea levels rise and violent storms occur more frequently, putting at risk residents and the transportation of $35 billion per year in goods and services.

In the West, roads and railways servicing the Port of Vancouver – which sustains more than 115,000 jobs and enables the trade of more than $300 billion in goods each year – are also vulnerable to extreme weather events.

To reduce its risk of sinking into the ocean, the Vancouver airport is raising the dykes that protect it from flooding, erosion and potential seismic events.

In the North – already lacking in transportation infrastructure – communities are facing new challenges brought on by melting permafrost that threatens road networks and airports.

Forest fires have also damaged rail lines. The season for ice roads, which are vital to many remote communities and mining companies, has grown increasingly short.

The St. Lawrence River is a major seaway that flows out of the Great Lakes and is a key economic driver in Ontario and Quebec. Challenges facing the seaway and its surrounding areas include warmer temperatures, unpredictable water levels and reduced ice cover, which results in shoreline erosion.

The importance of local-level climate change data also emerged as a key theme in witness testimony. The committee heard there is often a lack of data regarding the local impacts of climate change on critical transportation infrastructure.

The centralized sharing of that data – currently, data is often dispersed rather than being available in one place – was also highlighted as an issue related to local-level climate data used for decision-making.

The federal government must act urgently to strengthen Canada’s critical transportation infrastructure or risk catastrophe, the Senate committee’s report warns.

The report makes it clear that “private interests are doing a better job than the federal government in taking mitigating actions; and they’re doing so responsibly, as part of their business plan, versus the government’s approach of just making everything more expensive for Canadians,” said Sen. Leo Housakos, chair of the committee.

The committee’s recommendations include that the federal government:

• prepare a list of the country’s most critical transportation infrastructure to increase its resilience and maintain our supply chains in case of extreme weather events.
• develop a concrete action plan to protect the country’s most critical transportation infrastructure in partnership with the provinces, territories, municipalities, Indigenous communities (First Nations, Inuit and Métis) and the private sector.
• provide stable, long-term funding (from governments and the private sector) for climate change adaptation and mitigation efforts for transportation infrastructure.
• work with municipalities and Indigenous communities to determine the path forward in protecting the Chignecto Isthmus from the increasing likelihood of flooding.
• plan for and fund protection of transportation infrastructure and work with provinces, territories, municipalities, Indigenous communities and the private sector to ensure emergency plans and supplies are in place in case of an extreme weather event.
• in consultation with northern communities, develop a detailed plan to meet the specific needs of Northern Canada, including the construction of all-weather roads, port facilities and resilient airport runways.
• immediately begin consultations on protecting the Sea Island Vancouver International Airport location against storm surges and rising water levels.
• relax regulations so that the ports of the Great Lakes and the St. Lawrence can work together to improve their capacity and resilience.
• investigate the advantages of short sea shipping to increase cargo movement by marine modes of transportation, which would reduce carbon emissions by reducing the volume of cargo moved by trucks. Senate Standing Committee on Transportation and Communications

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The Government of Prince Edward Island has developed a PEI Seafood Sector Climate Change Adaptation Strategy to help the province’s seafood industry adapt to climate change challenges.

The strategy, developed with industry leaders and the ICF consulting group, builds on a seafood sector climate risk and opportunity assessment. This assessment identified potential climate-related impacts on P.E.I.’s aquaculture, commercial fishing and processing sectors.

For example, Acadian Supreme Inc., a lobster processing facility on the Island's south side, experienced $600,000 to $700,000 in damages from post-tropical storm Fiona in 2022, including loss of live lobster and infrastructure damage.

The PEI Climate Change Risk and Opportunity Assessment for the Seafood Industry found that power outages during extreme weather events, such as a post-tropical storm, pose the greatest risk to the processing sector.

In another example, ahead of Fiona, Prince Edward Aqua Farms Inc. sank all of their mussel lines, a strategy aimed at reducing the risk of losing or tangling the lines and buoys.

However, even with this precaution the storm caused significant losses. In Malpeque Bay, the deep turbulent waters and tide spun spat collector ties one way and then the other way when the tide changed, knotting and tangling the lines.

In other operating areas, the intensity of the storm's waves dislodged lines from their anchors, which then became tangled.

The Raspberry Point Oyster Company Inc., faced significant losses from Fiona, including the destruction and loss of 5,000 to 6,000 oyster cages.

The conditions of each post-tropical storm are different, making it difficult for mussel farmers to plan and strategize for these types of events, the assessment noted.

The commercial fishery and aquaculture industry is one of the province’s most valuable sectors, with an economic value of approximately $850 million and employing 8,000 people yearly.

The government’s strategy made the following recommendations for infrastructure, planning, research and monitoring programs in the province:

• Hold climate readiness trainings and presentations.
• Establish a climate impact monitoring program and database.
• Establish a seafood industry resilience program.
• Collaborate with researchers on innovation design solutions and gear guidelines.
• Prepare species-specific adaptation plans.
• Collaborate with researchers on climate-related biological threats.
• Continue to support broodstock programs.
• Promote diversification to adapt to increased variability.
• Continue to assess the feasibility and applicability of managed retreat.
• Optimize shellfish operations

“Continued investments in climate change adaptation will help reduce risks and continue the conservation and economic viability of our ocean resources for generations to come. This strategy will be a key component in making that happen,” Zack Bell, minister of Fisheries, Tourism, Sport and Culture, said in a statement.

“By proactively addressing potential risks and implementing adaptive strategies, we can help safeguard the future of the aquaculture industry and the livelihoods of those who depend on it,” said Peter Warris, executive director of P.E.I. Aquaculture Alliance.

“By working together on these critical issues, and with governments financially supporting these initiatives, we can build resilience against climate impacts and continue to provide high-quality seafood for generations to come,” said Robert Jenkins, president of the Prince Edward Island Fishermen’s Association.

Bob Creed, executive director of the PEI Seafood Processors Association, said the association is in full support of the strategy, which he said “is vital for ensuring the long-term sustainability and resilience of our seafood industry.”

The provincial government plans to engage with key stakeholders in the coming months to explore and further develop options. Govt. of Prince Edward Island

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Canadian Sustainability Standards Board releases new climate and sustainability accounting rules for companies

The Canadian Sustainability Standards Board (CSSB) released its climate and sustainability accounting rules for reporting greenhouse gas emissions and risks related to climate change.

The requirements are aligned with international standards but they give Canadian companies two additional years to comply with the rules and start reporting, and three years for the quantitative aspects of scenario analysis data reporting (not the qualitative aspects).

The CSSB is giving companies until 2028 to disclose Scope 3 emissions – those produced from their supply chains and end use of their products – for that fiscal year, three more years than required by international standards.

Companies also have until then to issue sustainability and climate reports with their annual financial statements.

The CSSB develops Canadian sustainability disclosure standards that align with the global baseline standards developed by the International Sustainability Standards Board, but with modifications to serve the Canadian public interest.

Chartered Professional Accounts of Canada provides funding, staff and other resources to support Canada’s standards-setting process.

The new rules, along with their supporting bases for conclusions(the rationale behind a standard or framework), are now part of the CPA Canada Handbook – Sustainability.

The new requirements represent Canada’s inaugural sustainability disclosure standards, aimed at promoting consistency and comparability in sustainability reporting.

The standards also are meant to curb “greenwashing” and give investors better information to help guide green financing.

While the standards are voluntary, they’re expected to guide Canada’s securities regulators on future disclosure rules that will be mandatory. CSSB

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No conclusive evidence that AI increases companies’ productivity in the short term: study by the Dais

Evidence of productivity gains from artificial intelligence are mixed and there is no conclusive evidence of a strong positive or negative relationship between AI adoption and short-term productivity improvement, according to a new study by the Dais.

There was no significant relationship between the adoption of AI in the early 2020 to late 2021 period studied and either Total Factor Productivity (TFP) levels or TFP growth (efficiencies in output production which do not stem from added labour or capital inputs) in the short-term, says the study by the public policy think tank based at Toronto Metropolitan University.

The set of firms that adopted AI were already 10 percent to 35 percent more productive than their peers, but the decision to adopt AI did not increase the rate at which their productivity grew within the firm.

“Many private-sector and policy leaders are betting big on AI as the silver bullet for Canada’s productivity crisis, but AI is a long game, not a quick fix,” the study’s authors said. “Companies must integrate it thoughtfully into their operations to see real gains.”

The study used high-quality data from Statistics Canada’s (StatsCan) Survey of Digital Technology and Internet Use and StatsCan’s Business Research Microdata, accessed through the Canadian Research Data Centre Network.

The findings of the study, while preliminary, “suggest that those who are optimistic of AI’s potential to boost productivity should exercise caution about the productivity benefits of AI adoption in the near term,” the report’s authors said.

They pointed out, however, that overall rates of AI adoption in the Canadian economy remain low and at an early stage.

As applications in AI become more widespread and are increasingly embedded across various operations, there could be an increased chance for potential efficiencies to translate into increased productivity, the authors said.

The report focused on the impacts of AI adoption before the public launch of OpenAI’s ChatGPT in late 2022, which sparked widespread interest in the latest generation of generative AI technologies, the authors noted.

As generative AI tools like large language models offer different capabilities from other types of AI, further research is needed to assess their impacts on productivity growth in Canadian firms, they said. the Dais

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Barriers in B.C.’s blue economy system include access to financial capital, talent attraction and retention, tapping into markets, and facilities and equipment: COAST survey

Access to financial capital was the most commonly identified barrier (49 percent) among companies in British Columbia’s “blue economy” ecosystem, according to a survey by the Centre for Ocean Applied Sustainable Technologies (COAST).

Also, one in three companies identified talent attraction and retention, access to markets, and access to facilities and equipment as key barriers to growth.

Each of the listed barriers to growth proved to be an issue for at least 20 percent of respondent companies.

This indicates the need for targeted supports across each barrier and deeper analysis illuminated how reports of facing these barriers were distributed across each stage of a company, COAST said.

COAST conducted the survey in collaboration with the University of Victoria’s Impact Investment Hub to understand the landscape of the blue economy in B.C. Sixty-three companies responded to the survey, which represents an estimated 7.5 percent of B.C.’s blue economy ecosystem.

Seventy-eight percent of the companies had teams of one to 50 people. Forty-eight percent of respondents reported annual revenue of $250,000 or less, and 25 percent were pre-revenue.

The most common primary sector focus areas reported were: conservation and protection (43 percent); marine bio-resources (40 percent); and ocean energy (33 percent).

Respondents categorized themselves as innovators/new tech developers and supply chain (service) providers more than any other role. This indicates the presence of many respondents that provide dual services (for example, a service company that also develops new technologies), COAST said.

Less than 15 percent of respondents have been funded from venture capitalists and fewer than one in five have received funding through angel investors. Nearly 25 percent of companies have used bank loans as a source of capital.

Companies that are seeking funding in the next two to three years are overwhelmingly targeting government grants (four in five).

COAST said this isn’t surprising considering the current sources of funding and that typically government grants are non-dilutive, although it also demonstrates the importance of helping companies to access diversified pathways to funding, to avoid an over-reliance on government grants.

Notably, 54 percent of companies seeking equity capital are looking for impact investors, while 18 percent and 21 percent are considering corporate ventures and other sources of funding, respectively.

COAST said this indicates a significant opportunity for investor engagement within the impact investing community, and for targeted skill-building around pitching, investor relations, and environmental, social and governance broadly for companies within the blue economy sector.

More than 90 percent of companies indicated that the province of B.C. is a target market, which suggests a desire to remain in the province.

Two-thirds of companies see the U.S. and Mexico as a target market. Only one in five companies identified Asia/Oceania as a target market, “which, considering B.C.’s proximity to Asia and the connection of the Pacific Ocean, seems to be a missed opportunity.”

Just 30 percent of companies see Europe as a target market, which may be due to the geographic distance and language barriers.

Business-to-business opportunities were the highest-ranked need for companies to penetrate target markets, with 72 percent of companies requesting this support.

Government support in connecting with target markets was the second-highest ranked need (69 percent), followed by marketing/PR (50 percent).

An overwhelming majority of companies surveyed indicated that they were definitely or maybe planning on expanding their teams within the next two to three years. Some targeted skillsets that are currently in demand among hiring companies include engineering, business and accounting, trade skills, and marketing.

COAST urged jobseekers to invest in programs that support blue economy workforce development, like COAST’s Blue Pathways initiative.

Nearly three in four companies indicated interest (yes or maybe) in co-locating at a shared innovation space. Dock facilities and access to water were also top priorities in terms of shared assets and spaces.

This shared need might be useful for coastal communities considering how to enable entrepreneurship through leveraging existing assets or developing new ones in shoreline areas.

COAST said key takeaways from the survey include:

• Companies over-depend on government funding.
• Access to financial capital is the greatest barrier to growth.
• Dock facilities with access to water and testing/demonstration sites are needed in B.C.
• Companies at all stages wish to focus business efforts in British Columbia.
• Hiring and workforce development are priorities. COAST

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Canada needs a vision and a network plan to develop offshore wind energy industry: report

Canada needs to develop a vision for the offshore wind energy industry and develop a holistic network plan for electricity system upgrades to accommodate grid-connected projects, according to a report done for Canada’s Ocean Supercluster and Marine Renewables Canada.

The federally supported global innovation cluster and Marine Renewables Canada commissioned OWC, a specialist global offshore wind consultancy, to prepare a report on how seabed leasing rounds for offshore wind projects may be structured, designed and implemented for the Canadian market.

Marine Renewables Canada is the national association for tidal, offshore wind, wave and river current energy, representing technology and project developers, suppliers, utilities, Indigenous organizations, researchers and communities.

According to the report, requirements for the success of leasing offshore wind energy projects include:

• Appropriate timing of the seabed leasing process with respect to the jurisdiction’s economic climate.
• A strong understanding of the current market context and future trends to de-risk the application design.
• Development of specific and strategic objectives is critical to ensuring that both the jurisdiction and the developer benefit from the seabed leasing round.
• Designing a process that can definitively and appropriately differentiate between applicants.
• Striking the right balance between price and nonprice elements.
• A process that understands key risks across parties and seeks to support risk reduction.
• Having a clear route to market in place and strong alignment with the permitting process.

The key challenges and risks for offshore wind energy development in the Canadian context are:

• Presence of high uncertainty and risks throughout the development phase.
• Developing and enacting effective risk-mitigation strategies.
• Lack of best practice and formal procedures to follow, risking suboptimal project delivery.
• Floating wind technology and industry maturity.
• Designing appropriate fixed foundation solutions for large wind turbine generation systems at shallow water sites in a harsh environment.
• Supply chain capability and capacity building.
• Grid constraints.
• Establishing a route to market.
• Complexity of logistics and installation for large components and projects, including navigating weather window constraints (especially important for geographies with strong metocean conditions).
• Major component replacement especially for floating wind energy systems, in strong metocean conditions.

The report’s recommendations for the process design, application content, evaluation method and enforcement measures are:

• Develop a vision for the industry to set expectations and guide developer decisions with respect to project concepts and timelines. This vision should accommodate a wide range of approaches given the current high levels of uncertainty in terms of the optimal direction for the market, and it should take into account supply chain capabilities and realistic growth projections as well as desired targets for offshore wind deployment numbers over time.
• Develop a holistic network plan for upgrades to accommodate grid-connected projects.
• Provide connection date and location to projects as soon as possible (where grid is to be the offtake).
• Develop a plan for alternative offtakes to supplement domestic grid option.
• Introduce a subsidy scheme (at least for the earlier projects in the pipeline). Combine this with a guaranteed route to market (for example, some form of power purchase agreement).
• Ensure the regulatory system is clear and streamlined in terms of obtaining the necessary approvals (already being developed for Newfoundland and Nova Scotia).
• Encourage an efficient and pragmatic approach to environmental impact assessment and licencing requirements.

The critical next steps the report identified are:

1. Set clear objectives for the industry and consequently for the first leasing round.
2. The relevant stakeholders need to proactively engage and develop the details of the wind energy site survey specifications and requirements as soon as possible.
3. Early and extensive engagement with all stakeholder groups prior to the leasing round to ensure stakeholders have the right tools to be able to properly engage.
4. Development of an overarching supply chain plan, including capacity assessment and capacity building projections.
5. Assessment of levelized cost of energy/project economics across the regional assessment areas, review of seabed pricing trends in other jurisdictions and impact assessment of different fees and fee structures on projects to select preferred pricing model.
6. The federal government’s directive on the first seabed leasing round should be drafted and provided as soon as possible so that the relevant entities have enough time to input to, design and implement an effective seabed leasing round.
7. Detailed mapping and options analysis to develop viable route to market(s) options for the full project pipeline and the development of a strategy and implementation plan.
8. Grid strategy development and implementation plan ensuring a coordinated approach to defining capacity targets, connection locations and timelines.

Marine Renewables Canada will be using this report to engage and have important discussions with government regulatory bodies about seabed leasing and auction design.

The report is also a useful resource for industry and different stakeholder groups, providing details on the intricacies of leasing round design to promote better understanding of the issues and help support more meaningful future engagement activities. Canada’s Ocean Supercluster

THE GRAPEVINE – News about people, institutions and communities

Mary Ng, minister of Export Promotion, International Trade and Economic Development, appointed Alison Nankivell as the new president and CEO of Export Development Canada (EDC). Nankivell has more than 25 years of international investment and strategic planning experience and comes to EDC from the MaRS Discovery District, where she served as CEO for nine months. Her appointment comes at a key moment as the federal government announced new measures to strengthen EDC in the Fall Economic Statement. These measures include expanding financing and insurance options for small and medium-sized businesses, and enhancing support for Canadian exporters navigating global markets. Nankivell succeeds outgoing president and CEO Mairead Lavery, who served a six-year term. At MaRS, Nankivell is being replaced on an interim basis by Grace Lee Reynolds, head of development and programming. Global Affairs Canada 

AI pioneer and Nobel Prize winner Geoffrey Hinton is donating some of his prize winnings to create a new neuroscience award. The $10,000 award will be presented at the Neural Information Processing Systems conference each year. The award will be given to teams of two or more researchers under the age of 40 who write a paper proposing a novel theory of how the brain works. The award will be named the Sejnowski-Hinton Prize after computational neurobiologist Terry Sejnowski and Hinton. The Canadian Press

Polar Knowledge Canada announced the Aklavik Hunters & Trappers Committee as the recipient of the 2024 Northern Science Award. The award is presented to an individual or a team who have made a significant contribution to Northern Canada through scientific research or who possess and share Indigenous knowledge in a collaborative way. The Aklavik Hunters & Trappers Committee has been a leader in environmental stewardship and knowledge sharing in the Canadian North for over 40 years. The committee works to preserve traditional hunting and trapping practices while ensuring sustainable wildlife management. The organization co-develops scientific projects that integrate Indigenous knowledge and supports local training programs, ensuring community involvement and capacity-building. The committee actively contributes to collaborative work with scientists including biologists, as well as environmental and social scientists, collaborating with organizations such as the Department of Fisheries and Oceans, the Inuvialuit Game Council, Natural Resources Canada, and the Wildlife Advisory Council, among many others. Polar Knowledge Canada

François-Philippe Champagne, minister of Innovation, Science and Industry, appointed André Loranger as chief statistician of Canada for a five-year mandate. Loranger has been serving as interim chief statistician since March 2024. Loranger, an experienced senior public servant, has worked at Statistics Canada for 27 years, leading large and complex statistical programs covering all aspects of the Canadian economy. He has previously served in various senior leadership positions in the agency, including assistant chief statistician for Economic Statistics and assistant chief statistician for Strategic Data Management, Methods and Analysis. He was also Statistics Canada’s chief data officer responsible for the overall stewardship of the organization’s information data holdings. Loranger also served as chair of the United Nations Network of Economic Statisticians and chair of the UN Committee of Experts on Environmental-Economic Accounting. Innovation, Science and Economic Development Canada

The Government of Alberta appointed economist Jack Mintz to chair a panel of experts in doing a comprehensive review and evaluation of the province’s post-secondary education system. Rajan Sawhney, minister of Advanced Education, appointed Mintz along with Charlene Butler, Dr. Ray Block, Joan Hertz, and Peter MacKinnon. The panel will look at, among other things, challenges such as population growth and changes to federal policies affecting post-secondary students. The panel members each have extensive experience in high-level executive and administrative roles at many of Alberta’s post-secondary institutions, in addition to membership on public boards, advisory councils and community organizations. They also bring diverse perspectives through backgrounds in economics, law, commerce, agriculture, health care, the sciences and the arts. Govt. of Alberta

Dr. Stephanie Borgland, PhD, was named a new associate vice-president (research) at the University of Calgary (UCalgary) effective January 1, 2025 for a two year term (renewable). Borgland’s portfolio will include animal care, regulatory bodies, research stations and other VPR initiatives. Borgland, professor in the departments of Physiology and Pharmacology and Psychiatry in the Cumming School of Medicine, is an internationally recognized leader in the neurobiology of motivated behaviour. She is a Tier 1 Canada Research Chair in the Molecular Physiology of Addiction, a member of the Royal Society of Canada College of New Scholars, Artists and Scientists, and a member of the Alberta Children’s Hospital Research Institute, Hotchkiss Brain Institute (HBI) and Mathison Centre for Mental Health Research & Education at the HBI. Borgland will take over the role of associate vice-president (research) previously held by Dr. Andre Buret, who has been a member of the Office of the Vice-President (Research) executive team since 2012. UCalgary

The First Nations Major Projects Coalition (FNMPC) named Mark Podlasly as its new CEO. Podlasly, a co-founder of FNMPC, has been involved in shaping the organization’s vision, strategies and key initiatives since its inception, including establishing the flagship annual conference and policy leadership. A member of the Nlaka’pamux Nation, Podlasly is a Harvard Kennedy School of Government graduate and an Action Canada Fellow. He serves on the boards of CIBC and Hydro One and previously held the role of chief sustainability officer at FNMPC, focusing on corporate governance, First Nations economic development and Indigenous financing. Podlasly succeeds Niilo Edwards, a founding member of the FNMPC who was named CEO in 2017 and who died after battling cancer. FNMPC

Calgary-based fintech Neo Financial appointed Tim Morris as chief banking officer, Rafael Mejia as chief growth officer and William Tsutsumida as chief credit risk officer. Neo Financial offers a digital-first financial services platform. Morris led Tangerine Bank for six years. Mejia served as vice-president of marketing and customer experience at Rappi, the Latin American “super-app” operating in in nine countries. Tsutsumida comes to Neo Financial from Nubank in Mexico, where he led efforts to scale the company to over 6 million customers. Neo Financial

LNG Canada named Chris Cooper as CEO of the project that will become the country’s first terminal for exporting liquified natural gas. Cooper will replace Jason Klein as CEO of the Shell PLC-led project, which is being built in Kitimat, B.C. for shipping LNG to Asia. Cooper, who is currently LNG Canada’s senior vice-president for phase 1 pipeline and expansion, will become CEO on April 1, 2025. He joined the joint venture in 2021. LNG Canada began building its $18-billion terminal in 2018 and is aiming to start exporting the fuel on ocean-bound vessels by mid-2025. The terminal is being constructed on a Kitimat industrial site on the traditional territory of the Haisla Nation. The Globe and Mail

McMaster University received a $1.5-million gift from Candu Energy, the original equipment manufacturer of CANDU nuclear technology and a subsidiary of AtkinsRéalis, a global engineering services and nuclear organization. The investment will fund the renovation of a former manufacturing hub into the Integrated Cornerstone Design Projects Studio, a state-of-the-art facility designed to enhance the educational experience for first-year engineering students. The studio, combined with associated renovated spaces, will be the most significant update to the John Hodgins Engineering building in several years. The Integrated Cornerstone Design Projects Studio, scheduled to open in the fall 2026 semester, will be a 5,000-square-foot hub where first-year students can collaborate, create and flex their ingenuity to tackle real-world problems through meaningful engineering solutions. The studio will feature leading-edge equipment such as laser cutters and 3D printers, a prototyping area and designated areas for group collaboration. The studio will host 1P13 – Integrated Cornerstone Design Projects in Engineering. This course introduces students to engineering concepts, develops their skills and applies those skills to three real-world group projects. McMaster University

The University of Guelph (UoGuelph) will introduce a new Master of Cybersecurity Leadership and Cyberpreneurship in the fall of 2025. Delivered jointly through the School of Computer Science and the Gordon S. Lang School of Business and Economics, the first-of-its-kind program in Canada will prepare students for careers as cybersecurity managers, cybersecurity thought leaders, policymakers and researchers. The program will combine experiential and remote learning opportunities – with an internship at the end of the program – to ensure that the program is accessible for working professionals. The focus on cybersecurity entrepreneurship, or cyberpreneurship, may also help graduates create their own startups, as the program teaches the complex operational, legal, compliance and fundraising challenges unique to the cybersecurity field. UoGuelph

The Winnipeg-based Manitoba Institute of Trades and Technology (MITT) launched two new programs, both starting in the fall of 2025, for students in health care and cybersecurity. The two-year Medical Assistant and Patient Care diploma program, accredited by the Canadian Health Information Management Association, trains students to work on health care teams in settings such as hospitals, clinics and long-term care facilities. The Cybersecurity Analyst advanced diploma program takes two and a half years to complete and prepares students to work as cybersecurity professionals who protect organizations from cyber threats. Students interested in these opportunities can apply at apply.mitt.ca. MITT

A University of Alberta (U of A) spinoff company is looking to raise millions of dollars from investors in a bid to further test its promising anti-cancer drug through Phase 2 human trials. Pacylex Pharmaceuticals was formed in 2012 by three U of A staff members. The company was recently named 2024 Company of the Year by BioAlberta. Pacylex is the first company in the world to develop a new class of drugs – N-myristoyltransferase inhibitors – that preferentially kill cancer cells. The company’s lead drug candidate, zelenirstat, delivered orally as a once-a-day pill, has completed Phase 1 trials in Canada and has been shown to be sufficiently safe to continue clinical development with evidence of potential efficacy against blood and solid tumour cancers. Myristoylation is a natural process that attaches a fatty acid (myristate) to proteins in cells. It’s a necessary step for building growth-signalling pathways, regulating metabolism and other biological processes, but it can lead to the development of cancerous tumours when it doesn’t work properly. The Pacylex treatment capitalizes on an unexpected weakness in that process that was uncovered at the U of A. The odds are against any new drug getting to this stage, according to company co-founder John Mackey, professor emeritus of oncology, founder of the Alberta Pre-Phase 1 Cancer Program and chief medical officer of Pacylex. “Bringing new ideas to the clinic is not easy,” Mackey said. “It’s time-consuming, it’s difficult [and] it requires a team that includes good scientists, willing patients and clinicians who are devoted to advancing their field.” Pacylex has been supported over the years by Brent Saik’s World’s Longest Games charities, the Alberta Cancer Foundation, the Cure Cancer Foundation, Alberta Innovates and the National Research Council of Canada’s Industrial Research Assistance Program. U of A

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