The integration of AI in the cleantech industry has the potential to revolutionize the way we generate, distribute and consume energy. From reducing emissions, optimizing grids and advancing scientific discovery and climate modelling, AI’s applications in cleantech are remarkably diverse. As a result, innovations and investments in AI-enabled cleantech and deep technology have surged, reaching a total of US$28.5 billion between 2018 and 2023.
But using artificial intelligence in cleantech comes with environmental implications such as high energy and water demands of AI data centres. This accelerates the need to expand clean energy infrastructure and develop clean electricity sources to support the AI boom.
While not AI-enabled cleantech, other novel technologies hold much promise. We focus on three:
- Carbon capture, utilization and storage (CCUS)
- Hydrogen and other alternative fuels
- Energy storage with a focus on long duration energy storage (LDES)
Many of these technologies are critical for global decarbonization and energy transition efforts, offering significant opportunities and competitive advantages in Canada.
In On the cleantech frontier: How AI is impacting innovation, Export Development Canada’s (EDC) senior economist, Prerna Sharma, offers myriad insights on Canada’s cleantech sector and investment patterns, AI-enabled cleantech and the opportunities and risks.
Since 2012, EDC has been a leading financier and thought leader in Canada’s cleantech industry. In the past decade, we’ve provided more than $41 billion in support to about 440 Canadian companies, enabling them to develop innovative and viable technologies to fight climate change and make their impact on the world.
Read this important EDC Economics report on the challenges and areas of growth for Canadian exporters in this key market.
