A geothermal energy company is the first recipient of funding from the Canada Growth Fund, the federal government's new $15-billion arm's-length public investment vehicle.
Calgary-based Eavor Technologies Inc. has developed a proprietary closed-loop geothermal system that the company says can be used to produce clean, reliable baseload heat and power.
The Canada Growth Fund has committed $90 million of Series B preferred equity in the company, to help Eavor grow its business while retaining intellectual property and creating jobs in Canada.
Finance Minister Chrystia Freeland announced the creation of the Canada Growth Fund in the 2023 federal budget.
The fund is meant to help Canada’s economy transform and grow on the path to net-zero greenhouse gas emissions. Its mandate is to invest in Canadian clean technology businesses that are developing technologies at the commercialization stage.
One of the goals of the fund is to help bridge the liquidity gap in the Canadian clean technology market, offering support to companies at the critical stage of commercialization and development.
The Public Sector Pension Investment Board, is one of Canada's largest pension investment managers, has been chosen to act as investment manager of the fund. It will do so through a wholly owned subsidiary, Canada Growth Fund Investment Management Inc.
This report by The Canadian Press was first published Oct. 25, 2023.