Hello friends,

A fun, personal climate update: we’re swapping out our old furnace for a heat pump this week (with our friends at Fern). I’ve written about them a ton, but now looking forward to experiencing it firsthand!

In this week’s issue, we’re unpacking the new MOU to advance the Pathways carbon capture project. We look at what’s actually in the deal, what it might unlock for carbon management, and how it fits into the Carney government’s (somewhat contradictory) energy strategy.

(I actually haven’t covered carbon capture much in this newsletter. I find it’s like a Rorschach test, confirming people’s priors on whether its an essential climate tool or straight up scam. But I find carbon capture is so varied that it’s hard to talk about as one thing - operating across many industries, at different scales, and with different implementations).

Elsewhere in climate tech:

What happened: Ottawa, Alberta and five oilsands producers signed a deal this week advancing Pathways, a $20 billion carbon capture network storing 6 Mt of CO2 a year underground.

The details: Pathways is part of PM Carney's "grand bargain", bundled with a new pipeline, expanded oil production, and commitments to cut emissions by 16 Mt/year.

Producers also get a carbon pricing carve-out: reduced stringency if they hit (or take "clear action toward") their emissions share, plus Clean Fuel Regulation and CCUS tax credit updates.

The context: The MOU closed just two days after Carney laid out his energy strategy: Canada will continue to develop fossil fuels and clean energy instead of treating them as competing priorities.

While Carney framed electrification as core to Canada's economic and energy security, not just the climate, he also acknowledged emissions will rise.

Why it matters: If Pathways actually gets built (still a big "if" IMO), it'll be one of the largest CCS projects in the world, expanding demand across the carbon management supply chain.

It also creates knock-on effects for the wider sector: enhanced tax credits, permitting reform, and a deeper talent pool.

Not so simple:

The bottom line: Pathways makes Canada’s energy policy clear, locking in higher emissions for more oil production. Electrification talk won't mean much until it gets matched with commitments just as concrete.

General Fusion (Richmond, BC) went public on the Nasdaq through a SPAC, making it the first pure-play fusion company to go public.

Emissions Reduction Alberta announced $37M in funding for projects to advance drilling technology. Projects include advancing Eavor's core geothermal technology, Swiss Borobotics' drilling robot for geothermal boreholes, and Rodatherm's closed-loop geothermal systems.

Canada announced $6.7 million in funding for mining innovation projects through the DIGITAL cluster, including advancing Novamera's surgical mining technology and developing Koonkie's AI-powered platform for restoration and monitoring at mine sites.

Supply-chain compliance platform Assent acquired Germany sustainability company IPoint, adding material and environmental impact data to is platform.

Sustaero partnered with Topsoe and Sasol to build a wood waste-to-SAF facility in Canada, producing 144,000 tonnes of SAF annually.

Vema Hydrogen and the SAF+ International Group consortium signed an MOU to build an integrated synthetic SAF ecosystem, pairing mineral hydrogen with synthetic fuel production.

Canada Nickel plans to expand its sales focus in Europe to tap into demand for low-carbon steel and nickel.

Climative is piloting an AI wildfire risk assessment platform for homeowners with Wawanesa Insurance.

Dispera and Project Clean partnered to launch a line of cleaning products derived from food waste, replacing fossil and palm oil ingredients.

UK-based Invinity Energy Systems partnered with First Nations Utility Batteries Partnership to deploy vanadium flow batteries in grid storage projects across Canada.

NY's Xeal Energy launched its multi-unit EV charging platform in Canada.

A generation of climate tech was built on assumptions that no longer hold up. AI primitives and cutting-edge models are commoditizing software, creating new questions around the future of climate software.

We sit down with Geordan Hankinson, Partner at Renewal Funds, and Mike Hejmej, CEO at Senpilot, to unpack how the Saaspocalypse is shaking up climate tech.

🎧 Listen on Spotify, Apple Podcasts, and YouTube.

Sustainable investments: Canada's draft Sustainable Finance Taxonomy (i.e. what counts as a "sustainability" investment) includes a new category for decarbonizing oil and gas production.

The Alberta meta: Meta announced a $13B investment to build a 1 GW data centre in Alberta. The data centre is powered by the grid and an on-site 932MW natural gas plant.

Backing critical minerals: Canada will invest $400 million into Vancouver's Teck Resources to expand critical mineral production. The deal includes Canada Growth Fund, NRCan and EDC, and includes an option for critical mineral offtakes.

Onshoring wind: Nova Scotia green-lit the province's largest wind farm, a 158 turbine project that will power Everwind Fuels' green hydrogen and ammonia project.

No deal: A First Nation in Quebec rejected a deal to allow Hydro-Quebec to develop hydroelectric projects on their territories. The deal would have waived any legal challenges in exchange for $2.5B in compensation.

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