CTC #70 - Breaking climate tech out of the lab

Hey there,

Welcome to this week’s issue of Climate Tech Canada. Today is all about the early stage, from climate research fresh out of the lab to climate tech dominating the CIX Startup Awards.

And in case you missed it, check out our piece from the weekend where we unpack the opportunity for Canadian startups to build out the next generation battery supply chain:

This week in climate tech:

• New Brunswick backs climate researchers

• Climate tech tops the CIX startup awards

• Hydrogen startups announce merger plans

Let’s go!

💰 NB backs commercialization for climate tech research

What happened: New Brunswick researchers are getting $540,000 in grants to commercialize research in climate tech and climate adaptation. The funding comes from the New Brunswick Innovation Foundation’s (NBIF) Climate Impact Research Fund.

Why it matters: Research has a hard time making the jump from lab to commercialization in Canada. The NBIF fund is focused on helping researchers make the leap by providing funding and connections with industry partners. Some of the funded projects include:

• Moulay Akhloufi, from Université de Moncton, will work with NBPower and PME Energy to improve the efficiency and resiliency of power transmission with AI.

• Shabnam Jabari, from University of New Brunswick, is developing digital twin tools that can help cities make better decisions on infrastructure and plan for climate adaptation.

• Shivam Saxena, also from UNB, will investigate consumer attitudes and the potential for vehicle-to-anything charging to offset peak demand.

Check out the full list of funded projects here.

📈 Climate tech tops CIX Awards

What happened: Climate tech startups made up more than 1/3rd of the Canadian Innovation Exchange’s (CIX) awards for Growth and Early stage startups.

Early stage winners: Early stage winners include Biofect Innovations, who are using precision fermentation to develop protein-producing microbes for the food and beverage industries. The goal is to produce alternative proteins with fewer resources and a lower environmental footprint.

Another early stage winner is Edgecom Energy, which uses connected devices and AI to help large energy consumers optimize their energy use. Edgecom’s solution includes monitoring, asset performance, peak load prediction, and decision support.

Sustaining success: Growth stage winners include Cyclic Materials who are tackling domestic supply chains for batteries and renewables with their rare earth element recycling technology. Evoco also made the list for their plant-based materials for the apparel industry. The materials can cut lifecycle emissions by two-thirds and are used by Vans, Timberland and L.L.Bean.

The strong showing by climate tech startups shows both the high-potential for climate tech and the strength of Canada’s ecosystem.

More milestones:

• CO2 Lock validated their carbon capture and storage solution, successfully injecting CO2 at depth for the first time.

• Hydrogen companies Loop Energy and H2 Portable Power will merge and raise $15M in new capital. Loop struggled with “challenging capital market conditions” since March of 2023, leading to the merger.

• Mangrove Lithium will partner with Italian electrode maker Industrie De Nora to convert raw lithium and produce new batteries.

• Deep Sky will deploy two of Carbyon’s rapid direct-air-capture units at their Quebec pilot facility, with the capacity to remove 50 tonnes / year.

• The Net Zero Supply Chain Initiative will design and deliver Canada’s first net-zero supply chain pilot, backed by industry partners like 7Gen, ABB, BC Hydro, Canadian Tire and others

• Mining startup GeologicAI acquired Resource Modelling Solutions, a resource sector consultancy, to accelerate expansion.

• Moment Energy was selected to provide battery energy-storage for high-speed EV charging at the Vancouver International Airport.

• Goethermal developer Subterra Energy is teaming up with services provider Enercare to help developers build new residential homes with geothermal heating and cooling solutions.

🗞️ In the news

⚡️ More flexibility in clean energy rules: The feds published new proposed Clean Energy Regulations to give energy producers more flexibility with emissions targets.

In the new proposal, generators would have an annual emissions limit based on the size of each generation unit instead of emissions per unit of electricity. This would allow higher-emitting sources (e.g. gas plants used to meet peak demand) to continue operating, but for shorter periods to stay within their annual allowance.

Other changes include pooling emissions from facilities in the same jurisdiction, the option to buy credits or offsets, and some exemptions for new plants. Key details are still missing (e.g. how much can be offset?) but overall it seems like the updates balance flexibility and cutting emissions well.

⚒️ Owning the graphite game: Quebec’s Nouveau Monde Graphite (NMG) will supply Panasonic Energy and General Motors with 18,000 tonnes/yr of active anode materials for up to 7 years. The supply agreement also comes with a US$50M investment and $275M to follow. NGM is pursuing a fully integrated approach from mine to plant.

🏭 B.C. adopts industrial carbon pricing: Starting in April, the province will adopt an output-based carbon pricing system for heavy industry. The new system will set performance standards by sector and companies can either earn credits for exceeding the standard or buy credits and offsets to meet their obligations.

🗞️ In other news:

• The feds are rebranding carbon pricing to address poor public perception. The rebate will now be called the Canada Carbon Rebate.

• Ontario is streamlining the process to connect new EV chargers to the grid, replacing unique processes used by 58 local utilities.

• CRA agreed to name the Saskatchewan government as a gas distributor. It’s the latest effort from the province to avoid paying the federal carbon tax (and getting SaskEnergy execs sent to jail).

• Canada Infrastructure Bank is providing $138.2M in financing for three energy storage projects in a collab between Nova Scotia power and Wskijinu'k Mtmo'taqnuow Agency, an Indigenous-owned partnership.

• The Saskatchewan Research Council will receive almost $5M from the feds to develop new separation processes for rare earth elements, enabling domestic production at commercial scale.

• Switzerland wants the UN to explore solar radiation management (SRM), a form of geoengineering. The motion will be voted on at the end of the month. It’s another sign that SRM may be gaining momentum.

• The U.S. is betting on geothermal with a $60M investment in advanced geothermal demonstration projects. Meanwhile, the EU is backing hydrogen with EUR$6.9B for hydrogen infrastructure projects.

📣 What’s going on

💡 B.C. Project Zero Incubator: ​The Project Zero Incubator program provides coaching and resources to entrepreneurs launching start-ups within the circular economy. Apply by Feb 26th.

📅 Climate Exchange: Resilient Cities by Climate Tech Ottawa: Connect with Ottawa’s climate tech crew to dive into the world of climate resilience, adaptation and sustainable cities. Feb 29th, Ottawa, ON.

💡 YCombinator Summer 2024: YCombinator’s Request For Startups features a call for Climate Tech building in energy, science, climate adaptation, green fintech, and carbon accounting & offsets. Apply by April 22nd.

📌 Jobs

Check out the job board for newly posted roles from Canadian climate tech companies like

➡️ Hiring? List your posting here.

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Justin