Canada’s clean energy sector is continuing to gain momentum, fueled in part by the TSX Venture Exchange’s 2023 Venture 50.
In a release, the TSX Venture Exchange highlighted that volatile pricing in traditional energy markets largely contributed to the growth of cleantech companies — most notably transition-focused firms that are producing alternative fuels.
Lithium, hydrogen and solar power-related companies are among the top performers of the TSX Venture Exchange.
Clean energy dominates the Venture 50
The TSX Venture 50 ranks companies in each category based on performance throughout 2022 on the following criteria: market capitalization growth, share price appreciation and trading volume.
Among the 10 companies listed in the clean tech and life sciences category, six of them were cleantech companies.
First Hydrogen Corp. (TSXV:FHYD) ranked first in the category, which saw its share price increase 144 per cent over the year and its market capitalization increase from $102 million in 2021 to $299 million at the end of 2022. First Hydrogen Corp. is a designer and manufacturer of zero-emission, long-range hydrogen-powered utility vehicles across the United Kingdom, European Union and North America.
Calgary-based CVW CleanTech Inc. (TSXV:CVW) ranked second with a share price increase of 204 per cent throughout 2022 and saw its market capitalization rise from $34 million to $143 million. CVW CleanTech is focused on providing clean solutions to Canada’s oil sands industry. Its CVW technology provides sustainable solutions to reduce the environmental impact of the oilsands industry.
Rounding out the top three cleantech companies on the TSX Venture 50 is Westbridge Renewable Energy Corp. (TSXV:WEB), which saw its share price increase 82 per cent and its market capitalization climb from $26 million to $57 million. Westbridge Renewable Energy is focused on originating, developing and profitable exiting utility-scale solar PV projects that incorporate on-site storage and enabling technologies.
Canada’s shift to clean energy
The clean energy momentum in Canada isn’t necessarily new. In fact, Statistics Canada states that the country is a world leader in electricity generation from renewable energy sources.
This year alone, the demand for clean and renewable energy in Canada — including solar, wind, geothermal and nuclear power — will keep growing as companies continue shifting towards net-zero commitments.
In line with this, the growth rate of renewable power in Canada is expected to increase 0.7 per cent in 2023. Between 2018 and 2023, the clean energy market size has grown 2.5 per cent on average.
By 2030, the Canadian government anticipates that 90 per cent of the country’s electricity will be generated by renewable and non-emitting resources.
The bottom line
Putting it simply, the shift towards clean energy in Canada will only continue gaining momentum from here on out.
Case in point, according to the International Energy Agency (IEA), since the last review it made in 2015, Canada has put itself on a path towards cutting greenhouse gas emissions by 40 to 45 per cent by 2030 from 2005 levels and reaching zero net emissions by 2050.
Policies are also already in place, including a carbon pricing scheme, clean fuel regulations, a goal of phasing out unabated coal use by 20230 and nuclear plant extensions, among many others.
In tandem with its growth is, of course, the rise of companies in the space shifting to more renewable energies — and the domination of clean energy companies on the TSX Venture Exchange certainly bodes well for the industry’s future.