Market Watch: Indigenous partnership to power clean energy

General Market Commentary

The Bank of Canada reduced its target interest rate on October 23, 2024, landing at four per cent. The Bank is continuing its policy of balance sheet normalization. The Canadian economy grew at around two per cent in the first half of the year and growth is expected in the second half. With inflation now back around the two per cent target, the Governing Council decided to reduce the policy rate by 50 basis points to support economic growth. The Bank is committed to maintaining price stability for Canadians by keeping inflation close to the two per cent target. The next scheduled date for announcing the overnight rate target is December 11, 2024.

When it comes to the cleantech market in particular, the rapid uptake of clean energy technologies offers major opportunities for countries such as Canada looking to manufacture and trade them but also presents challenging decisions for governments, which face tensions and trade-offs based on the industrial and trade policies they opt to pursue, according to a new report from the International Energy Agency (IEA).

The latest instalment of the IEA’s flagship technology publication focuses on the outlook for the top six mass-manufactured clean energy technologies: solar photovoltaic, wind turbines, electric cars, batteries, electrolysers, and heat pumps. Based on today’s policy settings, the global market for these technologies is set to rise from $700 billion in 2023 to more than $2 trillion by 2035 — close to the value of the world’s crude oil market in recent years. Trade in cleantech is also expected to rise sharply. In a decade’s time, it more than triples to reach $575 billion, more than 50 per cent larger than the global trade in natural gas today.

Hot Sector News

This month we’re putting the spotlight on BluEarth Renewables, a leading independent power producer with extensive experience in renewable energy projects across North America.

The Calgary, Alberta-based company was founded in 2010 and has been steadily building its presence with a growing number of clean energy projects across the continent.

With three offices across Canada and one in the U.S., BluEarth’s portfolio includes over 1 GW_AC (gross) in operation, under construction and contracted pre-construction, and over 7 GW of high-quality development projects that are actively being advanced. An overview of the portfolio is available here.

Most recently, the BlueEarth, the Canada Infrastructure Bank (CIB), and the Nlaka’pamux Nation Tribal Council (NNTC) achieved financial close on a $35 million loan towards quA-ymn Solar. The project will be located on reclaimed land in the Highland Valley Copper Mine, southwest of Kamloops, British Columbia. quA-ymn Solar is a partnership between the member communities of the NNTC and BluEarth.

Ariel view of the quA-ymn Solar site outside of Logan Lake, British Columbia. (Credit: CNW Group/Canada Infrastructure Bank)

Together, they will construct and operate a 15-megawatt solar facility which will connect into BC Hydro’s energy grid. The added capacity from 38,000 fixed-tilt solar photovoltaic panels will supply enough renewable energy to power more than 2,000 homes annually, for both Nlaka’pamux communities and the province’s grid.

“We are proud to reach this important milestone with NNTC and the CIB, as we begin construction on the quA-ymn Solar Project,” said Grant Arnold, president and CEO of BlueEarth. “BluEarth is grateful for the opportunity to partner with the NNTC in the development and operation of the Project, and we look forward to continuing to work with them on this and other opportunities.”

Securing a loan from the CIB was foundational to advancing the project for the NNTC and member communities. Exercising the economic component of title is key to financial independence which in turn is foundational to the exercise of jurisdiction and will have a positive impact for generations.

“This is an important Project for the NNTC and our member Communities and confirms for us that the disciplined and principled approach the NNTC has taken best protects Nlaka’pamux title and rights,” said NNTC Chief Matt Pasco. “We are sending a clear message together that after years of hard work in developing new, creative, recognition-based approaches to land and resource development, combined with deep and respectful relationships, that these are the foundations for how we make decisions together throughout the Nlaka’pamux homeland.”

Leaders from the Canada Infrastructure Bank, Nlaka’pamux Nation Tribal Council  and BluEarth Renewables gather to celebrate financial close. (Credit: CNW Group/CIB)

Through the Indigenous Community Infrastructure Initiative (ICII), the CIB is investing in projects which provide a service or a direct benefit to Indigenous communities. This project represents the CIB’s first ICII clean power loan to reach financial close in British Columbia.

The CIB will continue to collaborate with First Nation, Métis and Inuit communities on infrastructure projects in partnership with, and for the benefit of Indigenous communities across Canada.

“quA-ymn Solar demonstrates the NNTC’s resilience and dedication to addressing the interconnection between Indigenous rights and resources which will have long-term, positive impacts for their communities,” said Ehren Cory, CEO of CIB. “The CIB is proud to help advance this project, which will support economic reconciliation, provide stable revenue streams for the communities, opportunities for training and development and support Indigenous leadership in clean energy.”

 Currently under construction, quA-ymn Solar will provide approximately 100 jobs at peak construction and full-time employment opportunities to support operations. For the sixth consecutive year, BluEarth Renewables was named as one of Alberta’s Top Employers, a designation that recognizes employers that lead their industries in offering exceptional places to work, according to the annual competition is organized by the editors of Canada’s Top 100 Employers.

Stocks to Watch

Here is a list of Canadian cleantech stocks that we are monitoring for this column. This list of public companies is by no means complete, and we are open to suggestions from our advisors and readers.

*The authors of this column own equity. It is not meant to be an endorsement, but simply a statement of this fact.

James Sbrolla is a veteran of the financial and environmental industries.

Connie Vitello is editor of Environment Journal.

Featured image credit: Getty Images