Canada’s energy sector is bound for an investment boom by 2050, experts say – National | Whuff News


Canada’s energy sector will be the recipient of public and private investment dollars over the next decade, experts say, as the push to reach net-zero greenhouse gas emissions by 2050 gains momentum.

On Tuesday, the federal government through the Canada Infrastructure Bank announced an investment of nearly $1 billion in Ontario Power Generation for the construction of a small modular nuclear power plant, which is being developed near the Darlington Nuclear Station.

It was the kind of blockbuster announcement we can expect to see more of as the coming energy revolution gathers steam, said Bruce Lourie, president of the Ivey Foundation, a private charitable foundation dedicated to supporting Canada’s transition to a net-zero future while ensuring the country’s long-term economic competitiveness.

“And every time there’s investment, every time there’s a new industry, there’s income from the investment, there’s jobs from the investment, there’s new economic activity, there’s trade,” Lourie said.

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“We’re hearing a lot about how much it’s going to cost to transform the energy system. Yes, we will also benefit greatly. “

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According to a report from RBC Capital, a record 920 billion dollars was invested exclusively in the global energy transition area by 2021, and tens of billions more will be invested in the coming years as investors focus on decarbonization and growth.

Investment dollars will be needed for everything from carbon capture and storage and other projects aimed at helping to “green” traditional high-emitting sectors like oil and gas, as well as renewables, nuclear, electrification, retrofitting and more. .

The projects that will ultimately succeed, from an investor’s perspective, will be those that are reliable, affordable and able to access public licensing, said Jacquie Hoornweg, executive director of Ontario Tech University’s Brilliant Energy Institute.

“If we are determined that we are going to do this (get to net-zero), we have no choice but to invest in energy,” Hoornweg said.

Over the past decade, Canada’s energy sector has struggled with a lack of investment due to a variety of factors including commodity price crises, pipeline access issues, and regulatory and environmental concerns. As a result, major new projects in the sector have been few and far between.

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A renewed push to get Canada’s energy into Europe


But in recent months, Canada’s oil and gas sector has released announcements of proposed projects — from hydrogen plants to renewable diesel plants to carbon capture and storage _ aimed at reducing the industry’s emissions profile.

Many of these projects — as well as “clean” energy projects such as nuclear and hydroelectric power — are large-scale and long-term, said Richard Norris, an expert on energy security and energy policy and a fellow with the Canadian Global Affairs Institute. .

“You don’t build these things for less than five or 10 years,” Norris said, adding that the energy sector is probably entering a boom decade for investors – something that will increase as more sectors are hit by rising costs. lifestyle and slow consumer spending.

“Many of the sectors that have seen tremendous growth over the past 20 years, especially the technology sector, will not fare well when energy costs are high,” Norris said.

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“I think we’re going to see investors shift from the exciting technology stocks to the more boring energy sector, because that’s where we’re going to see returns over the next few years.”


Click to play video: 'Why investors are wary of Canada's energy sector'


Why investors are wary of Canada’s energy sector


In an interview last month, Evan Siddall — head of Alberta Investment Management Corp., which on Monday announced a $150 million investment in Tidewater Renewables, which aims to develop renewable fuels — said AIMCo wants to be the leader in financing. transition to a low carbon economy.

“We see strong financial return potential,” Siddall said in an interview. “We are a long-term investor, unlike the public markets which tend to operate quarter to quarter with a very short time horizon, we can look at the transition to 2030 and see how to get a return on deca.

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