Johnson Controls and Canada Infrastructure Bank commit $125MIL toward decarbonization retrofits
May 23, 2022 By Anthony Capkun
May 23, 2022 – The Canada Infrastructure Bank (CIB) and Johnson Controls (JCI) have signed an agreement that commits more than $125 million to accelerate private sector decarbonization retrofit projects across Canada.
“We are delighted to partner with Johnson Controls, one of Canada’s largest energy service companies to enable large-scale retrofit projects that will be carried out with no upfront investment from building owners,” said Ehren Cory, CEO, Canada Infrastructure Bank. “This is another CIB investment that fits perfectly with our $2-billion Green Infrastructure priority sector and will have a long-term material impact on Canadian infrastructure.”
Under the agreement, CIB will invest up to $100 million toward commercial, industrial, manufacturing and multi-residential buildings through JCI’s OpenBlue Net Zero Buildings as a Service offering.
CIB’s financing represents 80% of the overall capital cost of projects. An equity investment representing no less than 20% of the capital cost will be provided by Johnson Controls and its affiliate, Johnson Controls Capital Canada Inc.
JCI will identify and manage the retrofit projects by offering “a unique, efficient and vertically integrated delivery model inclusive of the investor and energy service company”. Participating organizations will be provided with capital, expertise and solutions to make “tangible progress towards decarbonization goals”.
Over the next five years, CIB and Johnson Controls’ collaboration is expected to reduce GHG emissions by more than 48,000 tonnes per year, say the partners, adding this is expected to create more than 900 jobs in the trade sector.
The investment is expected to reach financial close in summer 2022.
“Johnson Controls is proud to extend its investment in Canada with this collaboration,” said Katie McGinty, Johnson Controls, adding “[We] see this partnership with the Canada Infrastructure Bank as a vital initiative to support Canada’s progress toward meeting its carbon reduction commitments, and an extension of our commitment to a greener future.”
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