Calgary Herald

Oilsands fund targets clean technology

- JESSE SNYDER

An investment fund led by two major oilsands players announced new investment­s in clean technology companies Tuesday, part of a broader attempt to speed up the developmen­t of technologi­es and reduce the companies’ environmen­tal footprints.

Evok Innovation­s, a venture capital fund between Calgary-based Suncor Energy Inc. and Cenovus Energy Inc., announced in January that it would invest up to $100 million in clean technology companies.

Tuesday’s announceme­nt marks the fund’s first investment, the value of which it did not disclose. The investment is in five energy startup firms, ranging in scope from a designer of electric pumps to a bioremedia­tion company.

Evok is one in a long list of corporate venture funds that oil and gas producers have created in an attempt to discover new technologi­es, diversify revenues or clean up their image as heavy polluters. The energy industry’s adoption of such funds dates back to the 1970s, when super-majors such as ExxonMobil Corp. and Royal Dutch Shell PLC opened investment divisions.

Decades later oilsands operators in Canada began doing the same, with dismal results. Internatio­nal companies such as Total E&P Canada and Saudi Aramco launched Canadian investment divisions, alongside Canadian firms Suncor, Cenovus, Encana Corp. and pipeline giant Enbridge Inc. Those funds were either shut down or suspended, as company executives decided to focus on their core operations rather than put money into risky ventures. The failure of some funds kicked off a broader debate about whether oil producers should dip their feet into the investment business.

Evok CEO Marty Reed said Evok is structured differentl­y than past funds, and aims in part to mimic the investment philosophi­es of successful Silicon Valley VC firms.

“What differenti­ates us is that we truly are independen­t from our funders,” he said. “We operate much like a traditiona­l venture capital firm might.”

Among the five companies Evok invested in is Rotoliptic Technologi­es Corp., a company that designs low-wear electric pumps used in pipelines and facilities.

“Pumps today consume approximat­ely 10 per cent of the world’s electricit­y, and there’s been little innovation in that sector for 50 years,” Reed said.

Others include Mosaic Materials, a company developing a more efficient method of stripping CO2 out of exhaust streams, and Metabolik Technologi­es, which uses a biological process to remove harmful contaminan­ts from tailings ponds.

The fund is based in Vancouver where there is intense opposition to major oil pipeline proposals such as Kinder Morgan Inc.’s Trans Mountain Pipeline and Enbridge Inc.’s Northern Gateway.

The provincial government in B.C. has publicly opposed both pipeline projects, setting out lists of conditions that must be met before it will consider supporting either proposal.

 ?? BEN NELMS ?? Marty Reed, CEO of Evok Innovation­s says it will operate independen­tly from funding providers Suncor and Cenovus.
BEN NELMS Marty Reed, CEO of Evok Innovation­s says it will operate independen­tly from funding providers Suncor and Cenovus.

Newspapers in English

Newspapers from Canada