The Canada Infrastructure Bank (CIB) and Parkland (TSX:PKI) Corporation have struck a significant $210 million financing agreement to amplify the electric vehicle (EV) charging infrastructure across Canada. This strategic move is set to add up to 2,000 new charging ports at approximately 400 sites, marking a substantial step toward CIB's ambitious target of enabling around 4,000 public fast charging ports nationwide.
The CIB's Charging and Hydrogen Refuelling Infrastructure (CHRI) initiative is at the forefront of combating range anxiety, a common concern deterring potential EV owners. By bolstering the availability of charging stations, CIB aims to accelerate EV adoption and slash greenhouse gas emissions from on-road transportation—a sector responsible for 18% of Canada's total emissions. Passenger cars represent two-thirds of this figure, highlighting the importance of this expansion in mitigating climate change impacts.
Focusing its efforts in British Columbia, where there is a growing demand for EVs, Parkland is committed to delivering an exceptional customer experience as it broadens its charging network. With an eye on sustainable growth, Parkland is also considering third-party capital opportunities to supplement funding for this initiative.
The recent agreement between CIB and Parkland, announced today, aligns loan repayments with charger utilization rates. This financial structure allows for up to 80% capital coverage by CIB for the installation of chargers over the next four years. Parkland currently operates 37 charging stations, predominantly in British Columbia, and has plans to increase this number to 50 by early 2024.
As the CIB nears its initial $500 million investment goal for the CHRI initiative, it continues to look ahead with a broader $10 billion target set for Green Infrastructure to satisfy market demand and enhance the accessibility of charging infrastructure throughout Canada. To navigate the uncertainties surrounding EV uptake and charger utilization rates, risk mitigation strategies have been implemented, ensuring a resilient approach to this clean transportation transition.
All currencies Canadian dollar, unless noted otherwise.
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