CTC #32 - Funding for AI-powered grids & fruit fly bioreactors, plus Canada's plan for a just transition

Hey there,

Welcome to another issue of Climate Tech Canada! It’s been a big couple of weeks for the feds, as they announced major updates to the Canadian Environmental Protection Act and unveiled their new “Sustainable Jobs Plan”. These moves may solidify the federal government’s role in driving climate action across the country, and while moving away from the “just transition” language should help it land better, the plan still faces pushback from the provinces.

In other news, Ontario lands EV manufacturing commitments, Alberta faces blowback over their oil & gas well cleanup program, and the University of Waterloo partners with national nuclear labs.

In funding this week, BluWave-ai closed a Series A round for its AI-powered energy management platform, Future Fields added seed funding for its fruit fly-based bioreactors (you read that right), and food recovery & delivery platform Peko was acquired by Fresh Prep. Plus a bevy of investments from SDTC and the Alberta government. 

Funding

BluWave-ai (Ottawa, ON) secured $9.5M in Series A funding for its energy optimization platform. The funding includes a strategic investment from PowerON Energy Solutions, a subsidiary of Ontario Power Generation providing turnkey fleet charging. The latest round of funding will be used to expand BluWave-ai’s EV fleet solutions. 

Future Fields (Edmonton, AB) raised $15.1M in extended seed funding to develop bioreactors using common fruit flies. Future Fields replaces traditional steel tanks used for bioreactors with genetically engineered fruit flies. The process allows for faster development of proteins used in cultivated meat, vaccines, and more. The funding will go towards hiring and developing its first production facility.

Xaba (Toronto, ON) closed a seed funding round for its AI-driven robotics for the construction industry. Xaba’s technology enables construction firms to manufacture components with greater accuracy and less waste. The funding will accelerate product development, launch pilot programs and grow the team. 

Peko (Vancouver, BC), a food delivery platform focused on rescuing food waste from grocery stores, was acquired by meal kit provider Fresh Prep.

SDTC invested over $68M across 17 climate tech companies across ag-tech, energy, transport and more. Recipients include:

• Nano One Materials (Burnaby, BC) - $10M to scale up its low-cost and high-performance cathode powders used in lithium-ion batteries

• Hortau (Levis, QC) - $6.8M for its field and soil monitoring platform to help farmers improve the use of fertilizers

• Next Hydrogen Solutions (Mississauga, ON) - $5M to grow their green hydrogen technology using novel electrolyzers.

Emissions Reduction Alberta announced $58M in project funding for circular economy projects across the province. The funding comes from Alberta’s TIER carbon pricing program. Recipients include:

• INCA Renewtech (Kelowna, BC) - hemp-based biocomposite materials

• Northstar Clean Technologies (Delta, BC) - asphalt shingle recovery and recycling

• Carbon Upcycling Technologies (Calgary, AB) - commercial-scale carbon sequestration and utilization technology for the cement industry

The Alberta Hydrogen Centre of Excellence awarded $20M across 18 projects focused on developing & deploying hydrogen. Recipients include:

• Aurora Hydrogen (Edmonton, AB) - novel hydrogen production technology

• Momentum Materials (Calgary, AB) - high performance fuel cell assembly

• Hydrogen in Motion (Vancouver, BC) - low-pressure, solid state hydrogen storage

Milestones

Lion Electric, a Quebec-based manufacturer of commercial EVs, partnered with Mitsubishi HC Capital Canada to launch LionCapital Solutions, a vehicle financing program for customers in the U.S. and Canada.

Mitrex, a Toronto-based solar module manufacturer, received fire safety certification, enabling it to bring its building-integrated photovoltaics to high-rise buildings.

Everwind Fuels received Provincial environmental approval for its green hydrogen hub in Nova Scotia. 

PyroGenesis Canada won the bid to power New Zealand’s national hazardous refrigerant collection and destruction initiative.

Sustainable textiles manufacturer Roswell Textiles, launched its new plant-based ECOFUSE material, which can replace synthetic materials in water filtration, food packaging, and more.

Loop Industries will build it’s first full-scale recycling facility in Ulsan, South Korea. The plant will produce water bottle-grade plastics from textile wastes, taking advantage of the region’s extensive textiles industry.

Here & There

• Operations key to net-zero buildings. A study from the University of Waterloo found that the success of net-zero buildings hinges on data and staff capabilities. 

• Canadian companies driving the EV revolution. From charging, to mechanics, to the supply of critical minerals, EVs are changing the game. 

• Unlikely foes: the Koch brothers continue to fight the Doug Ford government for cancelling Ontario’s cap-and-trade program.

• Giving abandoned mines new life: Springhill, N.S. is exploring how they can re-purpose the former coal mines sprawling under the community to tap into geothermal energy

In the News

NATIONAL

Say goodbye to “just transition” and hello to “sustainable jobs”. The federal government unveiled their Sustainable Jobs Plan which aims to help Canada’s labour force navigate the transition to a low-carbon economy. The plan highlights the fact that the energy transition will require more new jobs, albeit in new, low-carbon industries. While the language of “sustainable jobs” is landing with Alberta better than “just transition”, the province still wants it scrapped, citing lack of consultation and overstepping provincial jurisdiction.

Right to a healthy environment. Major updates are in the works for the Canadian Environmental Protection Act, the first in 20 years. The most notable change is new language that “recognizes that every individual in Canada has a right to a healthy environment and that the Government has a duty to protect that right when administering CEPA”. This may be the feds aiming for a clearer mandate on environmental issues that tend to cross lines of federal and provincial jurisdiction, a main argument against legal challenges to federal carbon pricing.

And … 

• Canada has two new programs to accelerate home retrofits: the Deep Retrofit Accelerator Initiative for commercial & multi-unit buildings, and the Greener Neighbourhoods Pilot Program to support community-level planning vs one-off retrofits.

• A new Green Industrial Facilities and Manufacturing Program will support industrial energy efficiency & emissions reductions projects

• Canada jumps on the heat pump train with the Oil to Heat Pump Affordability program. The program offers grants for low- to middle-income households to switch to heat pumps.

• Seabed mining will not be permitted in Canada without a domestic regulatory framework in place due to concerns that the practice disrupts the seabed and releases greenhouse gases.

• The feds launched a new Indigenous Council to provide advice to the government on clean energy policy in Indigenous, rural and remote communities.

• Industry group Next Generation Manufacturing (NGen) will receive $117M from the feds to support Canada’s ZEV manufacturing ecosystem 

The latest numbers show zero-emission vehicles made up over 10% of new vehicle registrations in Q4 2022, the first time ever that sales have crossed the double-digit mark. B.C. and Quebec led the pack, with Yukon coming in third with a strong 11.9%, growing 105% vs Q3. 

PROVINCIAL

Good news for Ontario’s EV sector, as GM Canada announced it will begin producing electric drive units at its St. Catherines, ON plant and auto parts manufacturer Magna International opens a new $265M facility to produce EV battery enclosures in Brampton, ON.

Opposition continues to grow for Alberta’s proposed plan to clean up abandoned oil wells. The plan would give oil and gas companies breaks on royalties paid to the province in exchange for fulfilling their legal obligations to clean up the wells. Scotiabank has criticized the plan as violating “the core capitalist principle” that private companies should be responsible for the liabilities they accept.

Alberta launched Canada’s first commercial hydrogen vehicle demonstrations. The program gives commercial carriers opportunities to test commercial vehicles that operate with alternative fuels in their operations.

North America’s largest battery energy storage facility will break ground in Nanticoke, ON. The project is a partnership between NRStor, the Six Nations of the Grand River, Northland Power and Aecon.

Saskatchewan’s methane emissions may be almost four times higher than previously reported, according to new research out of Carleton University.

New Brunswick opts-in to the federal carbon pricing plan, choosing to allow the feds to manage the tax and redistribution instead. N.B. will continue to manage its own program for industrial emitters.

PEI will soon be home to a new BioAccelerator hub. The “centre of expertise” will expand on the current BioCommons Research Park, and provide essential biomanufacturing facilities for new companies.

The University of Waterloo is teaming up with Canadian Nuclear Laboratories and Atomic Energy of Canada to further research on Canada’s nuclear landscape. The partnership allows the organizations to tap into resources and knowledge, and will expand on UW’s innovation in small nuclear reactors, advanced materials, and more.

General Fusion, based in Richmond, B.C., is seeking $335M from the federal government to develop its fusion nuclear technology in Canada. The company already has facilities in the US and UK, both of which have dedicated government offices to support fusion development, while Canadian programs do not.

What’s going on

📅 MCJ Toronto: Climate Tech Social: Supported by MCJ Collective, this recurring networking and social event brings together the climate community in Toronto. All are welcome, whether you’re working on climate already or just looking to learn more.

💡 Atlantic Canada Cleantech Scale-up & Investment Challenge: This 8 month program brings the expertise from Foresight Canada, Imaginal Ventures, and Spring Activator’s expertise to climate tech founders in Atlantic Canada. The program focuses on access to capital and effective scaling, and culminates in a $100K investment challenge. Applications close March 17th, info session on Feb 28th

Jobs

Check out the job board to see open roles at some of Canada’s most innovative companies, including Peak Power, Audette, and New School Foods

That’s all for this week! Thanks for reading, and if you’re enjoying the newsletter, forward it to a friend!

Justin