Markham District Energy secures $270M investment to expand clean energy service

Financing supports MDE's expansion plans to serve new customers while accelerating objective of achieving net-zero emissions

Yorkregion.com
Dec. 7, 2022
Irene Wong

Markham District Energy (MDE) has secured $270 million funding to expand clean energy service to Markham’s rapidly growing urban centres.

The Canada Infrastructure Bank (CIB), MDE and CIBC announced financial close on a large-scale investment to expand clean energy projects. Under the agreement, the CIB and CIBC are each investing $135 million. The financing supports MDE's expansion plans to serve new customers while accelerating MDE’s objective of achieving net-zero emissions.

MDE is a City of Markham-owned thermal energy utility that currently provides services to 13 million square feet and 230 buildings. The investments will help MDE expand its service area, ensuring more buildings can connect to its low-carbon district energy systems. The new infrastructure is expected to reduce 33,700 tonnes of greenhouse gas annually.

District energy systems leverage proven technology to create a reliable, efficient and cost-effective energy distribution network. 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.  Every building connected to the district system becomes “net-zero ready.” The partnership will support meeting the City of Markham’s climate change targets to achieve net-zero emissions by 2050.

“This strategic investment from the CIB is an important catalyst to support Markham District Energy’s expansion plans and accelerate specific projects to reduce our carbon footprint now and advance our path towards net-zero emissions by 2050. We are very pleased that CIBC responded to our call for a funding partner which sets the stage for us to deliver efficient, reliable and low carbon district energy to all new customers in our growing urban centres.” said Bruce Ander, President and CEO, Markham District Energy.

Frank Scarpitti, Mayor of Markham added, “This is a great example of the municipal sector working with public and private sector partners to deliver environmental and economic benefits to Canadians.”