Canada Growth Fund’s (CGF) investment into Canadian cleantech is estimated to catalyze more homegrown innovations, and according to a Canadian Bar Association publication, this will establish a new structure in energy legal frameworks.
Elizabeth Burton, Gowlings WLG’s financial services practice group leader in Calgary, expresses excitement about this future circumstance, highlighting the CGF’s potential to cultivate a distinct Canadian expertise in technology development.
The article states that corporate lawyers specializing in energy are set to be front and centre in shaping and developing new intellectual property. It’s said they will also be engaged in structuring companies, overseeing mergers and acquisitions, and facilitating partnerships between municipalities and traditional energy providers.
Burton explained that the CGF offers abundant opportunities for legal professionals, such as structuring companies, overseeing mergers and acquisitions, and facilitating partnerships between municipalities and traditional energy providers. Moreover, it will address regulations surrounding the recent pause on approvals for renewable energy projects in Alberta, providing avenues for legal experts to address these challenges.
The CGF, announced in the 2022 federal budget, stands as a response to America’s Inflation Reduction Act. This initiative, according to Burton, will help Canadian entrepreneurs stay competitive in global cleantech innovations. By investing $15 billion over the next five years, the CGF will serve as an arm’s length public investment vehicle led by Patrick Charbonneau and other investment professionals.
When Eavor was announced as the first recipient of the CGF at a press conference in Calgary, Charbonneau was present at Eavor’s main office to mark the pivotal moment.
“My colleagues and I have had meetings over the past several months with innovators, developers and investors from across the country. I’d like to underscore: our door is open. We are looking to make good deals happen, and today’s transaction is proof of concept,” said Charbonneau.
As of October 2023, the CGF announced a $90-million investment into Eavor to help fund the company’s Series B. This not only recognized Eavor’s groundbreaking closed-loop system, but it also positioned the company as a leader in scalable geothermal technology.
Eavor CEO John Redfern acknowledges how the CGF’s funding will help the company keep their headquarters in Calgary, and it will also allow Eavor to identify Canadian projects that could fit into Eavor’s global pipeline.
“Ultimately, this help from CGF could enable us to achieve an Eavor IPO and the creation of a global industry leading an Alberta-based cleantech powerhouse. That’s our goal,” said Redfern.