by Mehr Sokhanda
As Canada races toward its 2030 environmental goals, the opportunities for cleantech startups are immense. Martin Vroegh, CEO of HydrogenII Canada and founding member of Ontario Clean Tech Industry Association, together with Bryan Duarte, Managing Partner at Black Tech Capital, and Entrepreneur-in-Residence at Altitude Accelerator, who brings over 30 years of energy industry experience share their expertise on why Canada is becoming a global hub for cleantech startups. Both are seasoned cleantech experts dedicated to advancing sustainability and clean technology initiatives, providing salient advice to help international founders navigate Canada’s thriving sector.
Why Canada for Cleantech?
“There’s a lot of opportunity,” says Duarte, highlighting the multi-layered market potential. “Depending on the scale of opportunity a founder or company is taking advantage of, there are so many different opportunities from a market perspective. There’s the local perspective, there’s the Great Lakes’ perspective, there’s the greater Toronto area perspective, there’s the international aspect.”
Canada’s cleantech sector offers a robust ecosystem for startups, backed by significant economic activity and government support. In 2022, Canadian businesses have generated 38.4 billion in environmental and clean technology goods and services, which has climbed 14.8% YOY, with the sector contributing over $67.5 billion to Canada’s GDP. For startups, this means access to established supply chains, experienced talent, and growing market demand.
“You have a very high caliber of well-educated pool of talent, including strong employment opportunities,” Duarte emphasizes. “We have a diverse range of companies, from small startups to large enterprises. This variety is particularly unique to metropolitan areas of this size, especially in the cleantech sector.”
A Natural Testing Ground for Innovation
One of Canada’s standout features is its role as an ideal testing environment for new technologies. Martin Vroegh, CEO of Hydrogenii Canada and founding board member of the Ontario Clean Tech Industry Association, explains the unique advantages: “We can have a summer day in the 30s (degrees) but we can also have a winter day in the minus 30-degree Celsius… We air condition everything in the summer and we heat everything in the winter. This is an ideal place to showcase technologies that enhance energy efficiency, whether through creating tighter building envelopes or optimizing energy usage.”
Canada’s diverse landscape offers unique testing opportunities for cleantech innovations. As Vroegh explains, “Within a short travel time, you can test your technologies in both densely populated urban areas and remote rural locations.” This geographical diversity enables companies to evaluate their products and services under a wide range of conditions and in various market settings, from bustling city centers to isolated communities. Such versatility in testing environments is invaluable for refining and validating cleantech solutions before broader market deployment.
The Altitude Accelerator Advantage for Startup VISA Cleantech Founders:
Altitude Accelerator’s partnership with BHive delivers a comprehensive 9-month program designed specifically for international founders. The program includes:
- Up to $500,000 in technology credits for scaling operations
- Potential access to $100,000 in SDTC non-dilutive funding
- Expert mentorship and industry connections
- Strategic market entry support and guidance
- Specialized cleantech programming
“We are very much focused on going beyond what’s just typical for an accelerator,” Duarte emphasizes. “We’ve got things like Champions Panels where we bring in industry experts– Altitude has 60 different advisers–and that kind of attention and focus on your business is key.”
Strategic Location Benefits
The program’s location offers distinct advantages. “Brampton is uniquely situated nestled right in between two of the largest cities within the Golden Horseshoe in that greater Toronto area – Toronto and Mississauga,” says Duarte. “You’ve got the proximity to the airport… you’re very close to Waterloo, one of our big hubs for development technology and AI, just a 40–45-minute drive.”
This prime location provides access to:
- Major transportation hubs
- Research institutions
- Technology corridors
- Manufacturing facilities
- Large customer base
- Skilled workforce
Key Market Opportunities
Canada presents several promising areas for cleantech innovation:
Carbon capture, utilization, and storage (CCUS) presents significant opportunities in Canada’s cleantech sector, as Duarte explains the conditions combined that influence this:
- Carbon pricing policies: The implementation of carbon taxes and pricing mechanisms creates economic incentives for emissions reduction.
- Presence of large emitters: Major industrial sectors contribute significantly to emissions:
- In Alberta, the oil and gas industry is a primary target for CCUS technologies.
- On the East Coast, coal-fired power plants present another opportunity for carbon capture.
3. Urgent need: There’s a substantial gap between current emissions levels and climate goals, creating a pressing demand for effective carbon capture and utilization solutions.
Battery and EV Technologies
Vroegh highlights the significant developments in battery technologies and manufacturing facilities in the region, particularly related to electric vehicles (EVs). He states, “With the emphasis on battery technologies and the construction of new battery plants, there is a strong focus on manufacturing and EV technologies.” These advancements present valuable opportunities for startups in both the electric vehicle and energy storage sectors.
Research and Development Support
Altitude Accelerator offers unique research and development (R&D) advantages through its partnership with GreenCentre Canada, a specialized chemistry lab based in Kingston, Ontario. Duarte elaborates on this valuable connection:
“Our collaboration with GreenCentre Canada provides startups with access to advanced chemistry resources typically available only to large corporations. GreenCentre can help you with chemical analysis; they can help you dive deeper into your technology with specialized assistance whether it’s biofuels or other green technologies.
This partnership enables cleantech startups to leverage professional-grade lab facilities and expert knowledge, accelerating their product development and innovation processes without the need for significant capital investment in R&D infrastructure.”
This arrangement significantly enhances the R&D capabilities available to cleantech startups in the Altitude Accelerator program, providing them with resources that can be crucial for refining and scaling their technologies.
Important Considerations for International Cleantech Founders
Succeeding in the Canadian market demands thorough preparation and a deep understanding of the country’s unique characteristics. Vroegh emphasizes two key points:
- Market and population knowledge: Entrepreneurs must gain a comprehensive understanding of Canada’s diverse markets and population demographics across different regions.
- Transportation logistics: Canada’s vast geography poses significant challenges for distribution and supply chain management. As Vroegh explains, “Moving products across Canada, such as from Toronto to Vancouver or Montreal, is vastly different from operating in a smaller country due to our immense geographical size.”
Starting Your Journey
Through the Startup Visa program, international founders begin with:
- 3-month virtual training with BHive
- Move to Canada with full support
- 6 months of specialized cleantech programming
- Ongoing expert guidance
When it comes to human resources and immigration Duarte adds , “The Startup Visa program is designed to facilitate international entrepreneurs in establishing their businesses in Canada, hiring Canadian talent, manufacturing products locally, and developing services here.
Ready to launch your cleantech innovation in Canada? Connect with Altitude Accelerator to learn how our Startup VISA Program can help you succeed in the Canadian market.