A new cleantech innovation centre opening in Vancouver will provide new sources of much-needed venture capital financing from China for B.C. cleantech companies and provide access to China’s massive and growing market for clean energy and clean technology.
In partnership with the Vancouver Economic Commission and Simon Fraser University, Hanhai Zhiye – a Chinese high-tech venture capital firm – announced November 27 that Hanhai and several other Chinese partners will set up a new innovation centre at SFU’s VentureLabs.
The China Canada Clean Tech Innovation Centre (CCCIC) will provide $15 million in seed financing in 2016 for B.C. cleantech companies.
Mayor Gregor Robinson said China has become a leader when it comes to investing in things like renewable energy and technology that addresses its environmental challenges.
“China invested a record $83 billion in renewable energy last year, leading the world in that investment, as well as being the largest investor in cleantech globally,” he said.
“This centre will further open up the opportunities between Vancouver’s cleantech sector, both by facilitating access to the Chinese market as well as seed and commercialization funding for both startup and advanced technologies – up to $15 million in the first year.”
Hanhai’s partners include Tsinhua Holding. Ltd., Jilin Ruite Environmental Protection Group and Henan Future Investment Inc., which together are providing the $4.5 million to launch the new CCCIC lab, which will be located in SFU’s VentureLabs.
Hanhai has already set up similar innovation centres and technology parks in Silicon Valley, Germany and Toronto.
Hanhai chairman Hanguang Wang said China’s growing population and drive to address environmental issues presents new opportunities for clean technology and clean energy.
“In China, after 30 years of reform, environment has come to the fore for our focus,” he said.
Addressing environmental challenges and energy concerns is largely an engineering challenge – an area where B.C. companies have a particular expertise.
Wang said the CCCIC “will form a bridge” between Vancouver’s cleantech sector and China’s market for clean energy and environmental solutions.
B.C. is recognized as a clean technology hub, but despite the innovation coming out of B.C., many companies here struggle to attract the venture capital needed to finance innovation that involves costly and lengthy engineering.
Wal van Lierop, CEO of Chrysalix Energy Ventures, said his cleantech venture capital firm has already signed a letter of intent with Hanhai to cooperate on funding new cleantech enterprises. He was therefore glad to see Hanhai actually putting down some roots in Vancouver.
“This connects innovators in Western Canada with the big markets and capital in China, and it’s good for both,” van Lierop said.
