CIB, CIBC and Markham District Energy Inc. close $270M energy infrastructure investment
by CM Staff
The financing supports MDE's expansion plans to serve new customers in the City's growing urban centres while accelerating MDE's objective of achieving net-zero emissions.
MARKHAM — The Canada Infrastructure Bank (CIB), Markham District Energy Inc. (MDE), and CIBC, 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 growing urban centres while accelerating MDE’s objective of achieving net-zero emissions.
Operating since 2000, MDE is a thermal energy utility owned by the City of Markham. As one of the district energy utilities 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.
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. As a result, MDE will try and 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.
District energy systems leverage technologies to reportedly 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.
The partnership will support meeting the City of Markham’s climate change targets to achieve net-zero emissions by 2050, and aligns with CIBC’s ambition to achieve net-zero operational and financing activities by 2050.
“As part of our mandate, we are focused on advancing clean energy projects across Canada. 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. The CIB’s collaboration with CIBC allows MDE to expedite and up size its sustainable energy network’s service area over the next 10 years,” said Ehren Cory, CEO, Canada Infrastructure Bank.
