Enhancing investments in natural gas utilities by CDPQ

Canadian pension fund CDPQ has announced an additional investment of $575 million in Energir, a gas distribution utility based in Quebec. This new commitment comes as part of Energir's decarbonisation strategy, which includes renewable energy projects, natural gas production plants, and "dual energy" systems in Quebec.

However, the investment has not been without criticism. Environmental campaign groups, including Coalition Sortons la Caisse de carbone, have questioned the credibility of Energir's decarbonisation strategy and accused the plan of overestimating the potential of renewable natural gas production. The coalition has also criticised Energir's planned emission reductions, which are based on the use of low-carbon hydrogen and CO2 capture, as extremely expensive and unproven technologies.

Despite these criticisms, CDPQ's executive vice-president and head of infrastructure, Emmanuel Jaclot, stated that supporting the growth and energy transition of portfolio companies, particularly those in Quebec, is central to CDPQ's strategy. The Fonds de solidarité FTQ, another Quebec-based investment fund, supports Energir's plan to accelerate Quebec's decarbonisation and energy transition. The Fonds de solidarité FTQ's support includes the development of the renewable natural gas sector.

It is worth noting that CDPQ already owns an 80.9% stake of Energir, with the remaining 19.1% owned by the Fonds de solidarité FTQ. Energir boasts net assets of $10 billion.

In a separate investment, CDPQ has acquired 80% in a Japanese solar plant. This new investment is expected to help reduce greenhouse gas emissions from fossil sources.

The search results do not contain information about the name of the environmental organization that criticized CDPQ's investment in Energir. The coalition's criticism towards CDPQ's investment in Energir, however, has been reported.

As Energir and CDPQ move forward with their decarbonisation efforts, the criticisms from environmental groups will likely continue to be a point of discussion and debate. The success of Energir's decarbonisation strategy and CDPQ's continued investment in the utility will be closely watched by both investors and environmental activists alike.