Financing package will allow buildings to undergo energy retrofits in Quebec

MONTREAL—Thanks to investments of up to $200 million by the Canada Infrastructure Bank (CIB) and Fiera Private Debt, the Société de financement et d’accompagnement en performance énergétique du Québec s.e.c. (SOFIAC) closed a financing package recently, making it the largest energy efficiency initiative in Canada.

The major investment will enable SOFIAC to extend its solution for large-scale energy efficiency retrofits to owners of commercial, industrial and multi-residential buildings whose overall annual energy expenditure totals more than $1 million, thereby significantly reducing their costs and greenhouse gas emissions, indicates a release.

Launched in January, SOFIAC is an initiative of Econoler and Fondaction, with the support of the Ministère de l’Énergie et des Ressources naturelles du Québec (MERN).

The financing package provides that CIB will lend up to $100 million, Fiera Private Debt up to $60 million, Fondaction will invest up to $30 million in share capital and the MERN is granting a subsidy of $5.5 million, adds the release.

The energy cost reduction target ranges from 25 to 40 per cent per, which could reduce greenhouse gas emissions by 30 to 50 per cent, resulting in the complete decarbonization of these buildings.

The deployment of SOFIAC’s projects is part of the effort to reach the target of the Quebec government’s 2030 Energy Policy, which aims to enhance energy efficiency by 15 per cent and reduce the amount of petroleum products consumed by 40 per cent, states the release, adding SOFIAC is also among the initiatives that will help meet the federal government’s commitment to reducing Canada’s GHG emissions.

“SOFIAC is extremely pleased today to have reached this crucial milestone. We will be the link between available capital and clean energy market forces,” said Michel Méthot, general manager of SOFIAC, in a statement. “With our zero-cost implementation mechanism, we will generate significant cash flows for our clients. We will also help them take advantage of the generous subsidy programs available. With our turnkey offer and our sound expertise in cleantech deployment, we are breaking down barriers today and enabling our clients to acquire leading-edge facilities that are key to decarbonizing our economy.”