The Ontario Teachers’ Pension Plan is providing a $200 million round of financing to Stem Inc. to finance its acquisition of artificial intelligence-driven energy storage projects in Ontario.
The pension fund took part in the company’s first round of Series D financing in January 2018. Within the next 12 months, Stem plans to use the funds to expand its projects to help lower energy bills for Ontarians by mitigating peak-demand cost through its energy storage systems.
“Stem represents a proven first mover in the storage sector with an innovative solution that drives value for its customers,” said Dale Burgess, senior managing director at Ontario Teachers’, in a press release. “Ontario Teachers’ believes there is significant value in providing a firm and competitive financing solution for industrial customers in Ontario”
Read: Ontario Teachers’ invests in energy storage company
While Stem’s energy solutions are specifically designed for Ontario, according to the release, its offering is ideal for large manufacturing plants and other industrial enterprises seeking to lower their energy costs.
“Our project financing partnership with Ontario Teachers’ enables us to further invest in Ontario and present customers with a stable, long-term offer to drive down energy consumption costs,” said John Carrington, chief executive officer of Stem, in the release. “Moreover, Stem continues to attract top-tier international asset management interest in our ability to transform electricity grids with vast energy storage networks and our superior artificial intelligence platform.”
Read: CPPIB takes stake in Swiss sports data firm, BCI invests in Texas timberland
In other investment news, the Ontario Municipal Employees Retirement System, among other investors, are taking part in raising $62 million of additional financing for digital health benefits platform League Inc.
OMERS’s venture capital investment arm, one of League’s initial investors in June 2016, is joined by RBC Technology Ventures Inc., BDC Ventures, Infinite Potential Inc., Wittington Ventures and lead investor Telus Ventures. The latest financing is set to help the company open offices in New York, San Fransisco and London, among other endeavours.
“We believe that innovative companies like League — which deliver compelling, consumer-centric experiences — will not only drive high employee and employer engagement, but will also deliver fundamental improvements in health outcomes for Canadians through their carrier-friendly open platform,” said Rich Osborn, managing partner at Telus Ventures, in a press release.
Read: OMERS Ventures boosts funding to health benefits technology startup