SOFIAC, an energy efficiency platform founded in 2020 to help commercial and industrial businesses to reduce emissions, has become the largest energy efficiency platform in Canada after substantial investment.
Firstly, the Société de financement et d’accompagnement en performance énergétique du Québec s.e.c. (SOFIAC), offers increased profitability and competitiveness through the development, financing, and implementation of energy efficiency projects.
Moreover, the platform closed a financing package of $200 million from the Canada Infrastructure Bank (CIB) and Fiera Private Debt. These investments made SOFIAC the largest energy efficiency initiative in Canada.
Particularly, CIB provided $100 million, while Fiera Private Debt up to $60 million. At the same time, the Ministère de l’Énergie et des Ressources naturelles du Québec (MERN) provided a subsidy of $5.5 million. Also, Fondaction will invest up to $30 million in share capital.
Furthermore, these funds will enable the modernization of commercial, industrial, and multi-residential buildings in Quebec. This modernization will significantly reduce their greenhouse gas emissions. Indeed, the investments will allow SOFIAC to extend its turnkey solution for large-scale energy efficiency retrofits to owners of buildings.
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SOFIAC contributing to Quebec’s climate target
In fact, the energy cost reduction target for new projects ranges from 25% to 40% per project. This should reduce greenhouse gas emissions by 30% to 50%, resulting in the complete decarbonization of these buildings.
On the other hand, SOFIAC will implement the solutions to the projects in the next five years; it will enable an estimated annual reduction of 20,000 tons of GHG emissions. Therefore, contributing significantly to Quebec’s and Canada’s transition to a low-carbon future.
In fact, the deployment of SOFIAC’s projects is part of the effort to reach the target of the Quebec government’s 2030 Energy Policy. This target aims to enhance energy efficiency by 15% and reduce the amount of petroleum products consumed by 40%.
In addition, SOFIAC is among the initiatives that will help meet the federal government’s commitment to reducing Canada’s GHG emissions. About the matter, Michel Méthot, General Manager of SOFIAC, said. “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.”
Finally, he commented. “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.”