Government of Canada expanding Markham District Energy’s affordable, low-carbon energy network

From: Department of Finance Canada

News release

Breaking ground on the world’s largest wastewater-to-energy project

July 16, 2024 - Markham, Ontario - Department of Finance Canada

Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, visited Markham District Energy—the city’s public energy utility and Canada’s fastest growing energy utility—to highlight how federal investments are expanding Markham’s affordable, low-carbon energy network to more residents and businesses.

Markham District Energy’s network is already delivering reliable, cost-efficient heating and cooling to over 15 million square feet across 240 buildings. 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. This innovative clean energy network is attracting major new investments to Markham and reducing greenhouse gas emissions by 35 per cent, with a target of net-zero by 2050.

To expand the world’s largest wastewater energy transfer facility so more residents and businesses can benefit from affordable, low-carbon energy, the federal government today announced an additional investment of $24.9 million in Markham District Energy. This investment will significantly reduce the energy network’s natural gas consumption with a new 18.5 megawatt wastewater heat recovery system and a new 500 kilowatt biomass pellet boiler, which will reduce emissions by over 700,000 tonnes of CO2e over the projects’ lifetimes.

Today’s investment builds on federal support already delivered to Markham District Energy, including:

Combined, federal investments in Markham District Energy will reduce emissions by 910,700 tonnes of CO2e by enabling the affordable, low-carbon energy network to expand to more residents and businesses in Markham’s downtown core.

Markham District Energy is just one example of how the federal government’s economic plan is growing the economy, reducing the cost of energy bills, and creating good-paying jobs today and for the next generation. Through initiatives like the Canada Growth Fund, Low Carbon Economy Fund, and Green Municipal Fund, the federal government is empowering entrepreneurs and innovators to turn their ideas into success stories, helping to unlock a brighter, more prosperous future for every generation.

Quotes

“We are empowering homegrown innovators, like Markham District Energy, to turn their ideas into economic success stories. By investing in cutting-edge technology, we are making energy more affordable—saving residents and businesses money on their energy bills—while also reducing emissions and creating good-paying jobs.”

- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance

“Canada’s ongoing efforts to switch to a sustainable economy presents us with a substantial opportunity to invest in clean, renewable energy. The Low Carbon Economy Fund is one way that we’re making progress. By working with partners like Markham District Energy Inc., we are providing communities across the country with the support they need to cut pollution, grow the economy, and build more resiliency.”

- The Honourable Steven Guilbeault, Minister of Environment and Climate Change

“The Government of Canada is delivering affordable and reliable power to Ontarians while advancing boldly toward a sustainable and prosperous future. The investment announced today in Markham ties in to the largest wastewater energy transfer project in North America and builds on the Canada Growth Fund’s historic investment in Markham District Energy’s network of nearly 250 buildings. I am pleased that this federal government is growing the momentum of the Green Buildings Strategy by investing in projects that will bring down energy bills and emissions alike.”

- The Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources

“The Federation of Canadian Municipalities’ Green Municipal Fund acts as a vital bridge to enable innovative projects, like Markham District Energy’s, to move forward while reducing risk and making them more attractive to investors. By unlocking more private investments, we can make our communities cleaner, more innovative, and more prosperous. Together, we're moving toward achieving net zero.”

- Geoff Stewart, President, Federation of Canadian Municipalities 

“Today represents a milestone in our 25-year history. The wastewater energy transfer project not only further positions Markham District Energy as a leader in innovative energy solutions and accelerates our path to becoming a net-zero district energy supplier, but is a representation of the outcome when there is cooperation and strategic support from all levels of government.”

- Bruce Ander, President and CEO of Markham Energy District Inc. 

Quick facts

  • Today’s $24.9 million investment in Markham District Energy, which de-risks the adoption of cutting-edge clean technology, is sourced from two funds:

    • Up to $16.7 million from the federal government’s Low Carbon Economy Fund; and,
    • $8.2 million, consisting of $1 million in grants and $7.2 million in loans, from the federal government’s $2.4 billion Green Municipal Fund, which is administered by the Federation of Canadian Municipalities.

  • Carbon contracts for difference accelerate investment in decarbonization and clean technologies by providing the carbon price certainty needed for industry to make investments that are intended to reduce emissions on a cost-effective basis.

  • Carbon contracts for difference guarantee a fixed minimum price of carbon when a company, such as Markham District Energy Inc., undertakes a project to abate its emissions in line with Ontario’s industrial carbon pricing system.

    • If the carbon price per tonne of emissions in Ontario’s carbon market is lower than the strike price set out in the contract for difference, the Canada Growth Fund will pay the difference to Markham District Energy Inc., helping to de-risk its investment in low-carbon energy solutions.
    • If the carbon price per tonne of emissions in Ontario’s carbon market is higher than the strike price set out in the contract for difference, Markham District Energy Inc. would pay the difference to the Canada Growth Fund.

  • The 2023 Fall Economic Statement announced that the Canada Growth Fund will be the principal federal entity to issue carbon contracts for difference (CCFDs), including allocating, on a priority basis, up to $7 billion of its current $15 billion in capital to issue all forms of contracts for difference and offtake agreements.

  • Budget 2024 announced that the Canada Growth Fund is developing an expanded range of CCFD offerings tailored to different markets and their unique risks and opportunities. The Canada Growth Fund will continue offering bespoke CCFDs and carbon offtake agreements, with a focus on provinces contributing significantly to greenhouse gas emissions reductions.

    • Budget 2024 also announced that the Canada Growth Fund will explore ways to broaden its approach, for example, by developing off-the-shelf contracts for certain jurisdictions and ways to offer these contracts on a competitive basis for a set amount of emissions reductions.

Associated links

Contacts

Media may contact:

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

Stay Connected

Page details

Date modified: