Investment marks CGF's first
Canada Growth Fund Inc. (CGF) has announced its investment of $90 million in Eavor Technologies Inc. (Eavor), a Calgary-based geothermal energy company. Eavor, a homegrown Canadian clean tech champion, recently developed a new closed-loop geothermal system called the Eavor-Loop™ to generate clean and dependable baseload heat and power.
CGF, with a mission to accelerate Canada's path to net-zero and spur economic growth, targets Canadian clean technology businesses on the cusp of commercialization. This investment, in the form of $90 million in Series B preferred equity, will allow Eavor to expand its operations, preserve its intellectual property, and contribute to creating jobs in Canada. It will also speed up the deployment of Eavor-Loop™.
Furthermore, the Government of Canada and the Public Sector Pension Investment Board (PSP Investments) jointly released an update on the activities of the CGF.
“We created the Canada Growth Fund to build Canada's clean economy and create great careers for Canadians from coast to coast to coast,” said the honourable Chrystia Freeland, deputy prime minister and minister of finance. “[The] investment in Eavor—the Growth Fund's first—will help to do exactly that, and it is an example of how our clean economy jobs plan is and will continue to deliver for people in Alberta and right across the country.”
“We are delighted to bring PSP Investments' rigorous investment process, depth of expertise, operational excellence and arm's length governance model to the execution of CGF's mandate,” said Deborah K. Orida, president and CEO at PSP Investments.
CGF Investment Management, a subsidiary of PSP Investments, will act as CGF's investment manager and has recently appointed Patrick Charbonneau as its president and CEO.
“CGF has an ambitious mandate to support economic development in Canada by attracting private investment in Canadian projects and technologies...We look forward to building more partnerships with great Canadian businesses across the country in the years ahead,” Charbonneau added.
Canada Development Investment Corporation (CDEV), the parent company of CGF, plays a pivotal role in supporting Canada's decarbonization efforts. Elizabeth Wademan, president and CEO of CDEV, acknowledged the role of CGF Investment Management in maximizing outcomes for CGF while ensuring oversight and compliance.
“CDEV is proud to contribute to Canada's decarbonization initiatives to accelerate a clean economy through CGF and congratulates the CGF Investment Management team on this inaugural investment,” Wademan said. “Engaging CGF Investment Management, a subsidiary of PSP Investments, to provide investment expertise at arm's length from the government, will maximize outcomes for CGF, while CDEV, through the CGF Board, continues to ensure oversight and compliance.”
PSP Investments, managing over $243.7 billion in net assets, is a major player in Canada's pension investment management. As announced in Budget 2023, PSP Investments, through its wholly-owned subsidiary, serves as the investment manager for CGF.
