CTC #69 - Another link in the critical minerals supply chain

Plus- Evercloak's seed round for energy efficiency, NGen back climate tech and industry collabs, and feds signal a change on big-ticket subsidies.

Feb 14, 2024

Hey there,

Welcome to another issue of Climate Tech Canada! Thanks for choo-choo-choosing to spend some of your Valentine’s day here. I’ve got you covered with all the romantic conversation starters like energy efficiency, supply chains and clean manufacturing. You can thank me later.

This week in climate tech:

NGen backs climate tech and industry collaboration
Canadian Nickel closes the value-add gap in EV supply chains
Provinces push back on carbon pricing

Let’s go!

💰 NGen backs clean manufacturing projects

A handful of climate tech projects received backing from the federal government through the Next Generation Manufacturing Canada (NGen) innovation cluster. NGen brings together industry, technology companies, and researchers to “build world-leading advanced manufacturing capabilities” in Canada.

15 projects are being funded including several focused climate tech and clean manufacturing:

CarbiCrete will use the funding to implement their cement-free concrete technology with manufacturing partner Macron Industries Corp.
Geomega Resources and NeoCtech will work on recycling and producing rare-earth oxides used in batteries and EVs from magnet scrap.
ZS2 Technologies, Falkbuilt, and several other partners are teaming up to develop fire-resistant and low-carbon magnesium-based cement boards for use in prefabricated building.

These projects feed into various priority areas for the feds, and are aimed at increasing innovation, collaboration and securing intellectual property.

Other funding:

🏡 Evercloak closed a $2M seed round for its energy efficient heating and cooling solution. The round was led by Bioindustrial Innovation Canada and participation from proptech VCs Greensoil Ventures and Groundbreak Ventures. Evercloak is developing new membranes for dehumidification that cut the amount of energy needed for heating and cooling.

💰 Brookfield Asset Management raised $10B in the first closing of its second Global Transition Fund to accelerate the transition to a net-zero economy. The fund is led by former governor of the Bank of England and Bank of Canada, and raised a total of $15B for its first Transition fund.

🚌 GreenPower Motor Company secured a revolving $5M loan from Export Development Canada (EDC) to fund production of its electric vehicles for existing customer orders.

📈 Canada Nickel plans $1B processing plant

What happened: Mining company Canada Nickel announced it will build a $1B nickel processing facility in Ontario. It would be North America’s largest, producing 80,000 tonnes a year.

Why it matters: The plant closes another gap in Canada’s EV supply chain. The majority of nickel produced in North American is shipped to China and Indonesia to be processed before being shipped back to be used by car manufacturers.

It’s a common dynamic for battery materials that western countries are trying to move away from. Building out capacity in Canada is an opportunity to diversify supplies, mitigate price shocks, while also building out local capacity and attracting investment.

Betting on Canada: The size of the project is risky - the price of materials can fluctuate, putting investments at risk. It’s a bet that demand for Canadian minerals will grow over the long term as the U.S. and EU push for friendly suppliers.

Other milestones:

Geosapiens launched a nationwide flood mapping model that covers all of Canada, providing a detailed view of flood risks for governments and insurers.
BluWave-AI will deploy its AI-driven Smart Grid Optimizer at the Sunbank solar farm in Summerside, PEI to optimize dispatching from energy storage.
Deep Sky will install Irish DAC startup NEG8’s modular units at their research facility in Quebec, capable of capturing up to 300 tonnes/year.
Li-Metal is moving ahead on a lithium metal plant to produce lithium carbonate in a more environmentally sound and less-costly process.
Battery X Metals, a mineral exploration and recycling tech company, will acquire battery tech company Li-ion Battery Renewable Technologies
Foodtech company Borealis Foods, which produces plant-based proteins and ready-to-eat meals, will list on the Nasdaq via SPAC merger

🗞️ In the news

🔋 Pivoting on EV investments: The feds may switch up their strategy for a potential new Honda factory. The feds have delivered several bespoke, multi-billion dollar production subsidies to the likes of Stellantis, Volkswagen and Northvolt to compete with the U.S. Inflation Reduction Act. Now, Industry Minister Francois-Philippe Champagne says the government wants to transition to relying on investment tax credits instead of one-off subsidies. The feds are betting that the existing keystone investments will produce an attractive ecosystem that, coupled with critical minerals, clean energy, and tax credits, can stand on its own.

💸 Provinces pushing on carbon pricing: Alberta’s NDP leadership candidates come out in opposition to consumer carbon pricing. MLA Rakhi Pancholi was the first to take the stance, suggesting the federal carve out for home heating oil undermined its legitimacy. Meanwhile, Ontario premier Doug Ford is also playing up a populist angle on carbon pricing by introducing new legislation that would require a referendum to introduce a provincial carbon pricing system.

💨 The winds of change: Two offshore wind majors are recalibrating after the industry struggled with rising costs over the past few quarters. Orsted is exiting several markets in Europe and scaling back in Japan and the U.S. Meanwhile, Eversource sold its stake in two U.S. wind farms for $1.1B to Global Infrastructure Partners as it works on exiting the industry altogether. The sector struggled to manage inflation, cost overruns and permitting challenges. One bright spot: Danish wind turbine maker Vestas returned to profitability on a record number of orders.

🗞️ In other news:

Quebec’s energy consumption per capita is the highest in the world according to new research. Industry, attracted by clean and abundant energy, is a major driver and wastes almost 60% of energy consumed.
Canada’s Building Trades Union will roll out climate-focused training across the country to develop the skills needed for climate-smart building and retrofits.
The U.S. Dept of Energy launched new carbon removal funding across multiple pathways including biomass, mineralization, and (in the future) ocean-based CDR.
HSBC is tapping into Google’s pre-vetted climate startup roster to hit its $1B climate financing target, while Barclays announced it will end direct funding for new oil & gas projects.
Ford created a “skunkworks” team to develop a low-cost EV platform, and mining exploration startup KoBold Metals discovered a vast copper deposit in Zambia.

📣 What’s going on

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

📅 2024 Innovative Farmers Conference: The Future-Ready Farm: Explore the practices and technologies that are redefining sustainable agriculture. Feb 21st in Kitchener, ON and online.

📅 Foresight’s Climate Connections: Power Edition: Join this online session to learn about specific challenges faced by industry in meeting the Net Zero Grid goal. Feb 22nd, online.

📅 PNW Vancouver Climate Happy Hour: Connect with the Vancouver climate community to talk project ideas, career moves or launching a climate startup over a drink or two. Feb 23rd in Vancouver, BC.