Investment in gas utility strengthened by CDPQ
CDPQ Commits Additional Funding to Energir Amidst Criticism
In a recent development, Canadian pension fund CDPQ has announced an additional investment of $575 million in Energir, a prominent gas distribution utility based in Quebec. This investment comes as CDPQ continues to support the growth and energy transition of its portfolio companies, particularly those in Quebec, as stated by Emmanuel Jaclot, CDPQ's executive vice-president.
Energir, with assets totalling $10 billion, has a decarbonisation strategy that includes renewable energy projects, natural gas production plants, and "dual energy" systems in Quebec. However, this strategy has faced criticism from environmental campaign groups, with Coalition Sortons la Caisse expressing concerns over its credibility.
CDPQ owns an 80.9% stake in Energir, making it a significant shareholder. The pension fund has also committed to helping Energir implement its decarbonisation strategy further.
The criticism towards Energir's transition plan revolves around concerns that it overestimates the potential of renewable natural gas production and that the planned emission reductions, based on low-carbon hydrogen and CO2 capture, are extremely expensive and unproven in scalability. The utility's climate resilience report has also been deemed incomplete and failing to meet the criteria for a credible transition plan, according to Sortons la Caisse.
Quebec-based investment fund Fonds de solidarité FTQ, which owns the remaining 19.1% of Energir, has supported the new investment. Gilles Poulin, the vice-president of Fonds de solidarité FTQ, stated that the new investment will support the development of the renewable natural gas sector, helping to reduce greenhouse gas emissions from fossil sources.
It's worth noting that CDPQ has made a separate investment, acquiring 80% in a Japanese solar plant, demonstrating its commitment to renewable energy.
The name of the environmental campaign group opposing CDPQ's investment in Energir could not be ascertained from the available search results. Despite the criticism, CDPQ remains steadfast in its support for Energir's energy transition. The future of Energir's decarbonisation strategy and its impact on Quebec's energy landscape remains to be seen.
