‘Markham leads the way’: Canada Growth Fund backs Markham’s carbon reduction project

Local Journalism Initiative

July 10, 2024 at 11:26 p.m.·2 min read

Canada Growth Fund Inc. (CGF) and Markham District Energy Inc. have entered a landmark 10-year contract aimed at advancing Ontario's energy sector.

The contract, known as a contract for difference, will fund Markham energy's development of a new heat pump system, delivering reliable and low-carbon energy services to Markham residents.

The innovative carbon policy operates as a two-way contract: if the actual carbon policy price exceeds the specified strike price, Markham energy pays Canada Growth Fund Inc.

Conversely, if the price falls below the strike price, Canada Growth Fund Inc. compensates Markham energy for the difference. The contracts are designed to reduce policy risk and price volatility, thereby improving economic outcomes for decarbonization projects.

The contract with Markham energy sets an initial price benchmark of $100 per tonne of CO2, with adjustments over the 10-year term based on Ontario's carbon pricing system. This innovative approach not only supports the energy company's sustainability goals but also paves the way for similar projects across Canada.

“This agreement with Markham District Energy is a significant step forward in CGF’s mission to support Canadian businesses adopting emission reduction technologies,” said Patrick Charbonneau, president and CEO of CGF Investment Management.

This first-of-its-kind agreement enables Markham energy to create a new heat pump system, supporting more than 200 jobs and reducing about 177,000 tonnes of CO2 emissions over the next decade, Charbonneau explains.

Markham District Energy, which currently provides heating and cooling services to local homes and businesses, will leverage this funding to implement the Wastewater Energy Transfer technology from Noventa Energy Partners Inc.

As the cutting-edge solution for extracting thermal energy from wastewater, the system will extract thermal energy from nearby sewage, replacing older natural gas-based technologies, unlocking further decarbonization opportunities across Canada, especially in the challenging low-grade heat sector.

“With the support of Canada Growth Fund, Markham District Energy can now proceed with our innovative wastewater heat recovery project,” said Bruce Ander, president and CEO of MDE.

“This initiative will significantly cut our carbon emissions, helping us move toward becoming a net-zero carbon utility while ensuring our customers receive reliable and competitively priced thermal energy.”

By standardizing financial instruments like specialized contracts, Canada Growth Fund Inc. aims to promote price discovery, market liquidity, and capital recycling, fostering greater investments in decarbonization projects nationwide.

Scarlett Liu, Local Journalism Initiative Reporter, Markham Economist & Sun

BBC
First images of Jasper after 100m high wildfire hit
The fierce wildfire in the Canadian town of Jasper melted cars to the road and turned homes to ash.
The Weather Network
Solar storms could spark bright auroras across Canada starting tonight
Keep your eyes on the sky this week as meteor showers and auroras light up the night!
CBC
Hundreds under evacuation order in B.C. as wildfires grow
Hundreds of British Columbians remain on evacuation order Monday morning as more than 360 wildfires burn throughout the province. They include all residents of the village of Slocan, a community of about 380 people in a part of southeastern B.C. where several out-of-control wildfires are burning, including two wildfires of note — fires that are highly visible or are threatening public safety.DriveBC says Highway 6 along Slocan Lake remains closed for a nearly 40-kilometre stretch from south of S
The Weather Network - Video
Yet another flood threat for southern Ontario on Tuesday
A slow-moving disturbance will usher in a very muggy air mass on Tuesday, increasing the threat of flooding. Get the details with meteorologist Tyler Hamilton.
The Canadian Press
Parks Canada, Guilbeault defend wildfire preparation policies after Jasper blaze
JASPER, ALTA. — Parks Canada officials and politicians angrily denied Monday that forest management policies in Jasper National Park contributed to a catastrophic wildfire that damaged one-third of the townsite.
Global News
Jasper damage surveyed in 1st media tour since wildfire
The fire in Jasper is still threatening the community, but a large contingent of fire fighters is doing what they can to gain the upper hand. Members of the media were taken on the first tour of the townsite inside Jasper National Park since it was ravaged by a wildfire, with the tour to give a closer look at the extent of the damage on Sunday afternoon. Jayme Doll reports.
The Canadian Press
5,000 rescued from flooding in North Korea, state media says
SEOUL, South Korea (AP) — More than 5,000 people isolated by flooding in northwestern North Korea were rescued by airlift and other evacuation work after heavy summer rains caused a river on the Chinese border to swell, state media reported Monday.
Associated Press
Fans swarm hill in Munich, claiming a high perch for watching Taylor Swift concert for free
Thousands of Taylor Swift fans have gotten free seats to her concerts in Munich on a grassy hill near the concert venue. The Swifties packed the Olympic Hill, or Olympiaberg, one of the highest elevations in the southern German city, for the second straight day Sunday. On Sunday, fans returned, once again packing the grassy hill with so many people that from a distance the scene looked like an anthill.
Bloomberg
US Farmers Want to Adapt to Climate Change, But Crop Insurance Won’t Let Them
(Bloomberg) -- In Kansas, where a prolonged drought has killed crops and eroded the soil, Gail Fuller’s farm is like an oasis. Sheep, cows and chickens graze freely on crops and vegetation in a paradisiacal mess.Most Read from BloombergVenezuela’s Opposition Disputes Claim of Maduro Election VictoryHarris’ Running-Mate Search Zeroes In on Three Top ContendersTraders Fret as 32-Hour Central Bank Spree Hangs Over MarketFrench Internet Lines Cut in Latest Attack During OlympicsMaduro Regime Accuses
GOBankingRates
4 Used Cars With the Best Gas Mileage If You’re on a Budget
If you've been paying attention over the last few years, you've noticed that used cars have gotten very expensive. Finding an automobile that's both affordable and fuel-efficient can feel like...
The Weather Network
Storm threat continues overnight for Winnipeg, northwest Ontario
Look out for a continuing risk for strong to severe thunderstorms through the overnight hours in southern Manitoba and northwestern Ontario
CBC
Take a gander at who's honking back in these daily New Maryland traffic tie-ups
Love 'em or hate 'em, the Canada geese of New Maryland are creating quite a stir.With only one way in and out of the village south of Fredericton, drivers are often held up by a gaggle of geese crossing Route 101 near the Baker Brook culvert.In fact, the flock's crossing is so frequent, New Maryland has installed seasonal geese-crossing signs to alert motorists.Roger Shannon has lived in the community of about 4,100 his whole life and knows all about the geese and the delays they cause. He said
The Canadian Press
Fires in the West are becoming ever bigger, consuming. Why and what can be done?
Decades of snuffing out fires at the first sign of smoke combined with climate change have laid the groundwork for a massive wildfire in northern California and scores of smaller ones across the western U.S. and Canada, experts say.
CNN
Earthquake shakes Los Angeles, with epicenter near Barstow
An earthquake shook the Los Angeles region Monday afternoon.
The Weather Network
All quiet on the Canadian front, except in these stormy regions
It's been a rough month for millions of Canadians, but Sunday will offer a break from the stormy weather...unless you live in one of these regions in the country
GOBankingRates
7 Affordable Hybrid Cars Coming In 2025
Auto manufacturers have placed their futures on the idea that electric vehicles (EVs) will dominate sales in the coming years, driven by buyers eager to decrease carbon emissions and save money on...
Canadian Press Videos
Devastation and smoke rise from the ashes of California wildfires
The so-called Park Fire had scorched more than 550 square miles of land in inland Northern California as of Sunday, darkening the sky with smoke and haze and contributing to poor air quality in a large swath of the Northwestern U.S. and western Canada.
Associated Press
A move to limit fowl in Iowa's capital eggs residents on to protest with a chicken parade
Residents with backyard coops in Iowa's capital city paraded with some of their chickens Monday from the Iowa Statehouse to City Hall after local officials ruffled their feathers by proposing stricter limits on raising birds in residential neighborhoods. Ed and Mary Byrnes Fallon, the operators of an urban farm in Des Moines, hatched the protest after the City Council unveiled the proposal earlier this month to limit fowl play — and potential noise, smell and mess.
LA Times
Project 2025 plan calls for demolition of NOAA and National Weather Service
The call to dismantle the United States' vital weather department has raised the hackles of experts who say NOAA provides not only important free data but also life-saving information.
WLKY - Louisville Videos
Severe Alert: Watching for the risk of strong to severe storms.
WLKY meteorologist Susanne Horgan has your forecast.

Latest Stories