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Government of Canada Investing $700 Million in Clean Tech Companies Through Business Development Bank (BDC)
Friday, January 19, 2018Company Profile | Follow Company
Vancouver, BC, January 19, 2018--(T-Net)--The Government of Canada announced today that it will invest $700 million through the Business Development Bank of Canada (BDC) over the next five years to grow Canada's clean technology industry.
Canadian clean technology companies produce innovative and competitive technologies that use less energy or reduce negative impacts on the environment. Through today's investment, BDC will take on more risk to help high-potential clean tech firms expand by providing them with the capital they need to hire new staff, develop products, support sales, and scale up and compete globally.
Minister Bains, along with the Honourable Jim Carr, Minister of Natural Resources, also announced the launch of the Clean Growth Hub, the government's focal point for clean technology. The Hub will focus on supporting companies and projects that produce clean technology, as well as coordinate existing programs and track results.
Budget 2017 took steps to boost the growth of Canada's clean technology producers. It set aside more than $2.3 billion for clean tech. That's the largest public investment ever committed to this field in Canada.
"Today's announcement demonstrates our government's commitment to create well-paying middle-class jobs while growing the economy and protecting the environment. The $700 million is part of our government's unprecedented $2.3-billion investment in clean technologies", stated The Honourable Navdeep Bains.
"With this new capital, we are looking to back the best in Canadian clean tech, with the aim of helping our most promising companies overcome financing obstacles and scale into global clean technology champions. Our endgame is to build a commercially sustainable clean technology ecosystem that will, over time, be able to catalyze greater institutional investment into the sector", said Michael Denham, President and CEO of BDC.
Quick facts
In support of clean growth in Canada, the BDC will make investments in clean technology producers showing strong potential. Specific selection factors include technology demonstrated commercially, growth potential, and an ambition to scale up.
To help clean technology firms grow, the Innovation and Skills Plan includes investments of nearly $1.4 billion in new financing on a cash basis, starting in 2017-18. This new financing, through the Business Development Bank of Canada and Export Development Canada, is being allocated as follows: $950 million in growth capital to support clean technology producers and approximately $450 million in additional project finance for clean technology producers.
Budget 2017 also made available $400 million to recapitalize Sustainable Development Technology Canada's SD Tech Fund, which supports the development and demonstration of early-stage clean technology projects.
Associated links
BDC.ca/cleantech
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