The Canada Growth Fund's innovative carbon contract for difference will expand affordable, low-carbon energy network to more residents and businesses
Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, welcomed the announcement of the Canada Growth Fund's fifth investment.
Through a novel form of carbon contract for difference, the Canada Growth Fund is working with Markham District Energy Inc.-the city's public energy utility and Canada's fastest growing energy utility-to expand its affordable, clean energy services to more residents and businesses. Markham District Energy's network delivers reliable, cost-efficient heating and cooling to over 15 million square feet across 240 buildings.
Through a system of underground pipes, energy is delivered to buildings in the form of hot water and chilled water to heat and cool building space. This clean energy network is already attracting major new investments to Markham and reducing greenhouse gas emissions by 35 per cent, with a target of net-zero by 2050.
This carbon contract for difference will help Markham District Energy Inc. generate more clean energy by using Noventa Energy Partners Inc.'s Wastewater Energy Transfer (WET™) technology to extract thermal energy from wastewater. Over the 10-year carbon contract for difference being announced today, the project has the potential to reduce more than 177,000 tonnes of CO2e emissions with an initial price of $100 per tonne of CO2e.
In Budget 2024, the government announced its plan to grow the economy and create good-paying jobs today and for the next generation, including by expanding the Canada Growth Fund's carbon contract for difference programs to new markets. Through initiatives like the Canada Growth Fund, the government is empowering entrepreneurs and innovators to turn their ideas into success stories, helping to unlock a brighter, more prosperous future.
