CIB provides $200M loan to Enbridge subsidiary for deep-energy retrofits
The Canada Infrastructure Bank (CIB) has issued a loan worth $200 million to a subsidiary of Enbridge Gas to enable deep energy retrofits of large buildings in Ontario.
Enbridge Sustain, which provides clean-energy solutions to developers, homeowners and commercial customers across Ontario, plans to use the capital to execute deep-energy retrofit projects in existing buildings. CIB and Enbridge Sustain expect the total retrofit program value to be up to approximately $300 million.
The projects will be developed and executed through a partnership between Enbridge Sustain and Blackstone Energy Services, an energy-management company.
The partnership will provide customers, including colleges, universities, multi-residential buildings and hospitals, with a suite of decarbonization solutions from design through construction, operation and maintenance.
Blackstone and Enbridge Sustain will offer retrofit solutions such as the conversion of heating and cooling systems to geothermal, solar generation, electric vehicle infrastructure, heat recovery, smart building controls and backup power generation.
The retrofits will replace existing lower-efficiency equipment with new technologies aimed at driving long-term energy savings which are used to repay the initial capital costs.
“We are excited to announce our collaboration with the Canada Infrastructure Bank and Blackstone Energy Services to launch an initiative that offers a practical and affordable solution to large energy users such as universities, hospitals, municipalities, and multi-unit residential properties,” said Mark Irvine, Vice President of Unregulated Business with Enbridge Gas. “This initiative aims to implement deep energy building retrofits that are expected to result in a minimum of 30% emissions reduction.”
The Enbridge Sustain agreement has pushed the CIB above $1 billion in financing towards sustainable building retrofits. Buildings are one of the largest sources of GHGs in Canada, accounting for around 18 per cent of total emissions.
“CIB's loan towards Enbridge Sustain's projects with Blackstone to retrofit large buildings will have a major impact on reducing greenhouse gas emissions,” said CEO Ehren Cory. “Deep retrofits, particularly in post-secondary education and hospital buildings are key to reducing energy use, lowering heating and cooling costs and supporting the environmental goals of building owners.”