CIB, CIBC partner on Markham district energy infrastructure investment
The Canada Infrastructure Bank (CIB), Markham District Energy Inc. (MDE) and CIBC have announced financial close on a large-scale investment to expand clean energy projects in the City of Markham.
Under the agreement, the CIB and CIBC are each investing $135 million. The financing supports MDE's expansion plans to serve new customers in the city’s rapidly growing urban centres while accelerating its objective of achieving net-zero emissions.
“As part of our mandate, we are focused on advancing clean energy projects across Canada<’ said CIB CEO Ehren Cory. “Our $135 million investment will support Markham District Energy in expanding their operations, benefiting residents and business owners in the City of Markham. The enhanced district energy system will reduce greenhouse gas emissions and create economic spin off benefits.”
Operating since 2000, MDE is a thermal energy utility owned by the City of Markham. As the fastest-growing district energy utility in Canada, it currently provides services to 13 million square feet and 230 buildings. The investments will help MDE expand its service area, ensuring more buildings can connect to its low-carbon district energy systems. By alleviating the need for separate heating and cooling systems and providing community scale fuel switching technologies, the new infrastructure is expected to reduce 33,700 tonnes of greenhouse gas annually.
The CIB worked with MDE to attract private capital from CIBC to expand its low-carbon district energy systems for residential complexes, commercial businesses and institutions. The funding will enable MDE to deliver on its 10-year growth plan which includes new high efficiency energy production facilities, extending the thermal distribution network, and investing in significant low carbon fuel switching projects, including Canada’s largest wastewater energy recovery project.
“This strategic investment from the CIB is an important catalyst to support Markham District Energy’s expansion plans and accelerate specific projects to reduce our carbon footprint now and advance our path towards net-zero emissions by 2050,” said MDE President and CEO Bruce Ander. “We are very pleased that CIBC responded to our call for a funding partner which sets the stage for us to deliver efficient, reliable and low carbon district energy to all new customers in our growing urban centres.”
District energy systems leverage proven technology to create a long-term reliable, efficient and cost-effective energy distribution network. Through a system of underground pipes, energy is delivered to buildings in the form of hot water and chilled water to heat and cool building space. Buildings are the largest source of greenhouse gas emissions in urban centres. Every building connected to the district system becomes “net-zero ready” as MDE continually betters its carbon performance while moving towards the net-zero target.
To date, the CIB has invested approximately $1 billion in district energy projects which will connect more businesses, institutions and residents to clean energy solutions.