Svante, a leading innovator in carbon capture and removal technology, has announced a significant investment of up to USD$100 million from Canada’s government-backed Canada Growth Fund (CGF). This substantial funding aims to support the development of cutting-edge projects designed to address emissions in hard-to-abate industries across both Canada and the U.S. The investment marks CGF’s seventh commitment, reflecting its ongoing dedication to fostering a clean economy and stimulating private capital for low-carbon initiatives.
Launched in 2023, CGF was endowed with a robust $15 billion capital allocation to be deployed over a five-year period. The fund’s mission is to drive the advancement of clean technologies, mitigate risks associated with low-carbon projects, and attract private investment into critical sectors such as clean energy, sustainable technologies, and green supply chains. CGF’s previous investments include $200 million in the Calgary-based carbon capture startup Entropy, $90 million in the geothermal energy firm Eavor Technologies, and up to $1 billion for the development of carbon capture and sequestration (CCS) infrastructure at Strathcona’s oil sands facilities in Saskatchewan and Alberta.
Patrick Charbonneau, President and CEO of CGF Investment Management, emphasized the strategic importance of this new investment: “CGF is committed to accelerating the deployment of crucial Canadian carbon capture technologies and scaling their manufacturing to enhance our global competitiveness. Svante presents a significant market opportunity, both within Canada and internationally, and we are eager to support their growth and innovation.”
Founded in 2007 and headquartered in Burnaby, British Columbia, Svante specializes in providing structured adsorbent beds and modular rotary contactor machines. These technologies are designed to capture and remove CO2 from industrial emissions, aiming to facilitate large-scale emissions reductions across various high-emission industries. Svante’s solutions target sectors including hydrogen production, pulp and paper, lime, cement, steel, aluminum, and chemicals. Additionally, their technology supports Direct Air Capture (DAC) solutions, offering versatile applications for industrial decarbonization.
Currently, Svante is constructing a new 141,000 square foot manufacturing facility in Burnaby. This facility is anticipated to produce advanced filters capable of capturing up to 10 million tonnes of CO2 annually. The investment from CGF will enable Svante to focus on its first-of-a-kind (FOAK) deployment opportunities and prioritize pipeline projects within Canada, further advancing its strategic objectives.
Claude Letourneau, Svante’s President and CEO, expressed his enthusiasm for the investment: “We are thrilled with CGF’s support, which is transformative for Svante. This investment complements our existing $145 million capital commitment to our Vancouver-based manufacturing facility and will significantly enhance our Integrated Project Development Services. It will help us de-risk FOAK projects by providing both project development expertise and essential financing.”
The investment from CGF will be executed through convertible notes and will be disbursed in two tranches: an initial $50 million followed by a second tranche of up to $50 million. The latter will be drawn as Svante progresses with the development and construction of carbon capture projects, with a strong emphasis on Canadian projects.
Jonathan Wilkinson, Canada’s Minister of Energy and Natural Resources, underscored the importance of strategic investments in the transition to a low-carbon future: “As we confront the climate crisis, countries and companies that act strategically will seize the opportunities presented by a low-carbon economy. Svante is leveraging available policy tools to drive economic growth and job creation, positioning itself as a key player in Canada’s sustainable future.”