
$10 Million Investment Drives Emission Cuts & Energy Efficiency in Quebec.
The dairy industry is witnessing a significant stride towards sustainability as SOFIAC, a Montreal-based investment fund, makes its inaugural foray into the sector with a substantial $10 million investment in Lactalis Canada. This landmark funding is specifically earmarked for ambitious decarbonization efforts at two of Lactalis’s key Quebec facilities located in Victoriaville and Laverlochère. This partnership underscores a growing commitment to environmental responsibility within the global agribusiness landscape.
The comprehensive upgrades funded by SOFIAC are projected to deliver impressive environmental benefits. Lactalis Canada anticipates an 11% reduction in energy consumption across these facilities, alongside a substantial 28% decrease in greenhouse gas emissions, totaling 5,600 tonnes annually. This significant cut in emissions is equivalent to removing approximately 1,700 cars from the road each year, showcasing the tangible impact of sustainable investments in dairy processing.
Key technological enhancements driving this decarbonization include the installation of advanced heat recovery systems and the strategic conversion of milk dryers from propane to electric power. By leveraging Quebec’s abundant hydroelectric grid, Lactalis Canada is tapping into a clean energy source, further amplifying the environmental gains. These innovative solutions demonstrate how targeted investments can transform energy footprints in large-scale dairy operations.
SOFIAC operates on a unique turnkey financing model, eliminating upfront investment requirements for its clients. The fund finances the necessary upgrades and then recoups its investment by taking an 85% share of the resulting energy savings over a 15-year period, targeting a moderate seven percent return. Discussions for this pioneering project began in late 2022 to early 2023, with the bulk of the installation work expected to be completed by the first quarter of 2026. This successful collaboration could potentially expand to three additional Lactalis facilities in Ontario, signaling a promising future for sustainable dairy.
This strategic partnership is a crucial step towards Lactalis Canada’s broader environmental goals. As a branch of the global Lactalis Group, the company is committed to achieving at least a 25% reduction in its Scope 1 and 2 greenhouse gas emissions by 2025, and an ambitious 50% reduction by 2033, with a long-term vision for net-zero emissions by 2050. This proactive approach to environmental sustainability positions Lactalis as a leader in the global dairy economics shift towards a greener future.
Source: SustainableBiz.ca: SOFIAC’s first dairy sector decarbonization investment: $10M to Lactalis
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