Enhances funding in natural gas utility by CDPQ
CDPQ and Fonds de solidarité FTQ Invest in Energir's Decarbonisation Strategy
Canadian pension fund CDPQ and Quebec-based investment fund Fonds de solidarité FTQ have made significant investments in Energir, a gas distribution utility in Quebec. CDPQ has committed an additional $575 million, increasing its stake to 80.9%, while the Fonds de solidarité FTQ continues to hold the remaining 19.1%.
The investments are intended to help Energir implement its decarbonisation strategy, which includes renewable energy projects, natural gas production plants, and "dual energy" systems in Quebec. However, the strategy has faced criticism from environmental campaign groups, led by Coalition Sortons la Caisee de carbone, concerned about fossil fuel investments.
The coalition questions the potential of renewable natural gas production in Energir's transition plan, and criticises the utility's planned emission reductions, which are based on low-carbon hydrogen and CO2 capture, as extremely expensive and unproven technologies.
Emmanuel Jaclot, executive vice-president and head of infrastructure at CDPQ, stated that supporting the growth and energy transition of portfolio companies, particularly those in Quebec, is central to CDPQ's strategy. He emphasised that the fund is committed to contributing to a more sustainable future.
In contrast, the Fonds de solidarité FTQ's support for Energir includes the development of the renewable natural gas sector, with the aim of helping reduce greenhouse gas emissions from fossil sources. The fund believes that Energir's plan to accelerate Quebec's decarbonisation and energy transition is crucial for the province's future.
Energir, with net assets of CAD $10 billion, has been under scrutiny for its transition plan, with Sortons la Caisse criticising it as incomplete and stating that it does not meet the criteria for a credible transition plan.
In a separate investment, CDPQ has acquired 80% in a Japanese solar plant, demonstrating its commitment to renewable energy and sustainable development on a global scale.
The environmental campaign criticising CDPQ's investment in Energir is based on concerns about fossil fuel investments, but the specific campaign name is not explicitly given in the search results. Despite the criticism, both CDPQ and the Fonds de solidarité FTQ remain committed to supporting Energir in its decarbonisation efforts.
