As per ESG Today, this is CGF's sixth investment in sustainability-focused technologies, two other investments including a 200 million USD financing for Calgary-based carbon capture startup Entropy, as well as a 90 million USD funding for Calgary-based geothermal energy company Eavor Technologies.

The new partnership sees CGF and Strathcona contribute with 50% each for the development of the required carbon capture tech. CGF officials initially offered 500 million USD for financing, but this could be upscaled to one billion USD.

Currently, Strathcona operates six oil sands facilities in Canada, which generate around 3 million tons of carbon emissions. As per the collaboration, the company aims to capture and store up to 2 million tons of these emissions every year.

Patrick Charbonneau, President & CEO of CGF Investment Management, said that "this partnership is a breakthrough in Canada’s journey towards decarbonizing the oil and gas sector. Alongside CGF, Strathcona intends to advance Canada’s first CCS projects in the heavy oil sector."

At the same time, Adam Waterous, Executive Chairman of Strathcona, added that "we hope this innovative partnership with CGF will serve as a template for other producers and serve notice to the global oil and gas industry that Canada not only has one of the largest and most profitable oil resources in the world, but soon through these CCS projects, on a path toward becoming the least carbon intensive."