GOVERNMENT FUNDING

Prairies Economic Development Canada (PrairiesCan) announced federal investments totalling $180 million for the Calgary Airport Authority to construct, fit out and equip a new 150,000-square-foot aircraft engine maintenance and test facility at the Calgary International Airport. This facility will allow for the onshoring of maintenance and testing of engines used in the commercial aviation sector while also facilitating a transition to lower-emission engines and sustainable aviation fuels. These investments include $172 million in financing from the Canada Infrastructure Bank and $8 million in non-repayable contributions from PrairiesCan through the Community Economic Development and Diversification program. They are part of a multi-partner collaboration that includes the Government of Alberta, the City of Calgary, Calgary Economic Development, YYC Calgary International Airport, and Lufthansa Technik to advance a regional vision for a western aviation hub. The new facility will be unique to Canada in its capacity to accommodate the next generation of narrow-body, lower-emission jet engines, which will help position Canadian airlines to meet Canada’s commitment to net-zero emissions. In addition to better environmental outcomes, the facility will provide engine maintenance and repair services to help airlines improve cost competitiveness and reduce downtime. The facility is expected to break ground in mid-2025 and be completed in 2027. The facility will serve all airlines, with WestJet as a cornerstone client for Lufthansa Technik. PrairiesCan

The federally funded Canada Growth Fund Inc. (CGF) is committing up to $50 million to Longbow Capital Inc., a Calgary-based private equity investment manager with a successful track record investing in energy, power, infrastructure and technology. CGF will invest in the Longbow Energy Transition Fund II LP. CGF's investment joins existing commitments from other limited partners including BDC Capital and TD Bank Group. Longbow Energy Transition Fund II invests in businesses that are expected to benefit from the momentum behind the energy transition, with a focus on technologies and services that help lower carbon emissions through efficient and cost-effective solutions. This is the CGF’s tenth investment since its launch in June 2023. Through its cleantech funds strategy, the CGF seeks to leverage the expertise and provide further investable capital to Canadian managers to speed up the growth of targeted companies. The CGF will also encourage managers and portfolio companies to adopt best-in-class sustainability practices. The CGF said it believes that supporting select managers should, over time, lead to a higher volume of quality opportunities across the Canadian market and attract more sophisticated investors to Canadian cleantech companies. CGF

Natural Resources Canada (NRCan) announced a joint Government of Canada and Government of New Brunswick investment of $40.1 million over four years through the federal Fighting and Managing Wildfires in a Changing Climate Program – Equipment Fund and the Resilient Communities through FireSmart Program. This joint investment is supporting the purchase of equipment such as tanks and pumps, drones, trucks and heavy equipment. By buying and upgrading equipment, upskilling training for personnel and establishing a group of Indigenous firefighters, New Brunswick will be better prepared to respond to local wildfires and provide support when other regions in Canada experience high fire activity. This joint investment will also support wildfire preparation through the application of FireSmart practices in New Brunswick, to help prevent wildfires and mitigate their impacts at the community level. NRCan

The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) announced over $16 million for six life sciences organizations: McRae Imaging Inc., Nanz Pharma, OBIO, Synaptive Medical, Traferox Technologies Inc. and Toronto Innovation Acceleration Partners (TIAP). As part of this investment, TIAP received $3.5 million to work with academic and research institutions to create, grow and scale life sciences ventures. With this investment, TIAP will support 50 health sciences businesses by providing them with the resources to succeed, speeding up the commercialization of their solutions, and attracting funding for continued growth, all while strengthening their presence across southern Ontario. By expanding production capabilities, commercializing new products, creating accessible support and resources, and new programming for life sciences SMEs, these innovators are meeting the growing demand for quality, home-grown medical products. FedDev Ontario

Natural Resources Canada (NRCan) announced a total of $14.2 million for six projects, provided through the Energy Innovation Program’s Carbon Capture, Utilization, and Storage Research, Development, and Demonstration call for proposals. These projects support the research, development and demonstration of next-generation carbon capture and storage technologies that have the potential to significantly reduce the costs of capturing and storing carbon. The funding recipients and projects are:

• $5 million to Enbridge Gas Inc./Imperial Oil Limited for a project that aims to successfully characterize the carbon dioxide storage potential in the Cambrian saline reservoir in southwestern Ontario to improve planning for future CO₂hubs in the region. 
• nearly $3.4 million to Canada Nickel for its in-process tailings carbonation technology, which aims to utilize ultramafic tailings from nickel mining as a permanent, geologically stable CO₂sequestration solution.
• $2.5 million to the Governing Council of the University of Toronto for a project that aims to leverage a low-cost, renewable, electric direct-air-capture removal process to capture and concentrate atmospheric CO₂ into a pure stream for geological storage or utilization of CO₂.
• $600,000 to Université Laval for a project to conduct research focused on identifying efficient and cost-competitive solid adsorbents for direct air capture applications using an integrated molecular modelling and machine learning technique and to validate their performance through experiments.
• $500,000 to Université de Sherbrooke (Laboratoire LOCUS) for a project that aims to improve cryogenic/expansion technology via laboratory R&D to develop an innovative supersonic carbon capture process, adaptable to various industrial sources at low cost. NRCan

The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) announced an investment of over $10 million for seven manufacturers in southern Ontario’s electric vehicle supply chain. The funding will boost Canadian production capabilities, upgrade equipment to improve efficiency and competitiveness and support local supply chains. These companies include: Enedym Inc., Forest City Castings Inc., Palcam Technologies Ltd., Process Research Ortech Inc., Proventus Global, Sinteris Canada and SWTCH Energy Inc. With this funding, these companies will make it easier to integrate EV charging stations for businesses and homes, increase parts production and strengthen southern Ontario’s position in the EV manufacturing sector. FedDev Ontario

The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) announced over $9 million to support seven Waterloo Region-based businesses to enhance made-in-Canada offerings, including Alchemy, Avidrone Aerospace Inc., Ball Service Group, FluidAI Medical, GeoMate Inc., Planitar and Smarter Alloys Inc. With this funding, these companies will adopt innovative technologies and manufacturing methods to bring Canadian products and services to market. Part of the investment allocated nearly $700,000 to help Avidrone accelerate the commercialization of a zero-emission cargo drone. This drone will carry 20 kilograms of commercial and defence cargo, such as goods, parts, tools and medical supplies, for up to 100 kilometres. FluidAI Medical will receive $2 million to enhance its manufacturing processes to scale the commercialization of its post-operative care devices and technology for global markets. FedDev Ontario

The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) announced nearly $9 million for two organizations in the Waterloo Region to support Canadian solutions in clean technology and advanced manufacturing. This includes more than $3.9 million for the Accelerator Centre to launch new sustainable development cohorts of AC:Studio. Launching later this year following the successful pilot cohort of the program, the enhanced AC:Studio program will provide over 45 high-potential startups with funding, mentorship and operational support as they focus on reducing carbon emissions, driving energy efficiency and advancing clean growth. The funding also includes $5 million for the University of Waterloo to create the Consortium for Sustainable Scale-up in Metal Additive Manufacturing (CSS-MAM) hub, building on the success of the Multi-Scale Additive Manufacturing lab. This new hub will focus on bringing Canadian businesses together to drive innovation and growth opportunities in Ontario's advanced manufacturing sector. The hub will support over 85 businesses, while preparing our future workforce with critical skills. In collaboration with the MSAM lab, the hub will foster Canadian solutions to reduce the environmental impact of the advanced manufacturing sector, focusing on waste and carbon dioxide reduction, digital manufacturing and the development of local supply chain clusters. FedDev Ontario

Prairies Economic Development Canada (PrairiesCan) announced a federal investment of over $6.7 million for Edmonton companies to grow by helping them become more productive and competitive, and access new markets for their products and services. Each of these companies is a leader in developing innovative applications in sectors ranging from sustainable building technologies and digital health solutions to advanced manufacturing and renewable energy. Local companies receiving support include:

• Levven Electronics is receiving more than $1.25 million to enhance manufacturing capacity, build out a national marketing and sales team, and expand the product line for its patented in-home building technology which makes homes more affordable and sustainable by reducing costs and materials.
• CARE Group is receiving up to $1.5 million to scale its digital mental health platform to over 50 rural and Indigenous communities across Canada with a goal of enhancing access to high-quality mental health care for underserved populations.
• Demir Engineering Ltd. is receiving up to $2.5 million to expand in-house production of innovative bi-metallic and metal matrix industrial products, scale up its advanced manufacturing business, increase its workforce and expand into new domestic and international markets.
• Grengine is receiving up to $1.5 million to scale production of its cutting-edge battery energy storage technology while expanding manufacturing, reducing costs and accelerating deployment of its plug-and-play battery packs for critical infrastructure and remote operations. PrairiesCan

The Canada Water Agency announced over $5.5 million to support 65 new projects. These projects will be carried out under the EcoAction Community Funding Program and the Community Interaction Program. The EcoAction program, managed by the Canada Water Agency, funds community projects across the country to improve water quality and protect freshwater resources. The Community Interaction Program, under the St. Lawrence Action Plan (2011–2026), is co-managed by the Canada Water Agency and the Ministère de l’Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs du Québec. It supports local projects to protect and enhance the St. Lawrence River ecosystem. The recipients of the EcoAction program in 2024–2025 include:

• The Conseil régional de l’environnement – région de la Capitale-Nationale: $100,000 for the “École Éponge” (Sponge School) project aimed at improving water quality in three rivers located near Quebec City through rainwater collection, sediment retention and tree planting, involving students from three schools.  
• The Organisme de bassins versants Charlevoix-Montmorency: $61,199 for the “Amélioration de la qualité de l’eau des lacs” (improving water quality of the lakes) project, which reduces sediment and contaminant runoff to improve water quality in seven lakes in Saint-Aimé-des-Lacs, Quebec.
• The Société de gestion environnementale de Dolbeau-Mistassini: $95,140 for the “Restauration du parc Centre-Ville de Dolbeau-Mistassini” (restoration of Parc Centre-Ville in Dolbeau-Mistassini) project, which includes cleanup, management of runoff water and replanting to protect aquatic and wetland ecosystems.  

The recipients of the Community Interaction Program in 2024–2025 are:

• The Fédération de l’Union des producteurs agricoles de la Montérégie: $200,000 to restore and enlarge the agricultural riparian buffer strips, which reduces erosion and nonpoint-source pollution and helps improve water quality in the tributaries of the St. Lawrence River in Montérégie. 
• The Société Mamuk de Nutashkuan: $100,000 to educate Innu youth about responsible fishing and hunting eating practices.
• Nature-Action Québec: $324,349 to carry out two projects, involving the restoration of turtle habitats on Fryer Island to better protect their environment and the improvement of biodiversity along the Mascouche River thanks to extended riparian buffer strips. Canada Water Agency

Agriculture and Agri-Food Canada (AAFC) announced that the Government of Canada and the Government of Manitoba are providing $4.7 million in grant funding under the Sustainable Canadian Agriculture Partnership to support 36 projects, including several that benefit the future of crop health in Manitoba, under the Research and Innovation Program over the next three years. The Research and Innovation Program supports the development of science-based solutions and tools that address known challenges, prepare for potential disruptions and climate threats, and capture emerging opportunities in the agriculture and agri-food sector. The program provides funding to eligible applicants for research and capacity-building projects aimed at promoting the agriculture sector's growth and sustainability, helping to put Manitoba at the forefront of sustainable agriculture research. Funding will support 36 projects across Manitoba, including:

• Manitoba Crop Alliance: research how crop residues influence soil, water, carbon and weed populations.
• University of Manitoba: creation of genomic selection models to improve the efficiency of winter wheat breeding.
• Manitoba Pulse and Soybean Growers: identify resistance sources for soybean root rot and assess the impact of inoculation strategies.
• Agriculture and Agri-food Canada: development of molecular markers to breed improved oat varieties. AAFC

Natural Resources Canada (NRCan) announced $2.7 million in funding through the Green Industrial Facilities and Manufacturing Program to Newfoundland and Labrador Hydro. This funding will help expand the TakeCHARGE Isolated Communities Energy Efficiency Program (ICEEP) for manufacturing facilities, primarily fish plants, in isolated communities across the province. The ICEEP program will serve to lower participating customers’ electricity bills and reduce pollution from diesel-powered generation. NRCan’s contributions will also provide capital upgrades, energy audits and strategic energy management to improve the energy efficiency of qualifying industrial and manufacturing facilities. NRCan

 Housing, Infrastructure and Communities Canada (HICC) announced a $2.3-million investment to retrofit the Maritime Sikh Society’s building with a solar energy system. The Maritime Sikh Society is contributing $596,295. By installing solar panels, implementing conservation measures like insulation, weatherization and lighting controls, and upgrading fixtures to reduce lighting power density, these building retrofits will help reduce the Maritime Sikh Society’s carbon footprint and provide long-term cost savings while minimizing pollution. HICC

Prairies Economic Development Canada (PrairiesCan) announced new federal funding of $1.3 million to increase access to pilot training in two Saskatchewan cities, and to scale up aerospace manufacturing in an urban centre. These investments will help address labour market needs in aviation, advance specialized aerospace manufacturing, and build prairie prosperity with well-paying jobs. Investments include:

• The Regina Flying Club, a not-for-profit organization, is receiving $250,000 to expand its commercial flight training program in Regina. These funds are being used to upgrade training aircraft, renovate classrooms and meeting areas, and sustain jobs for instructors and support staff.
• Saskatchewan Polytechnic is receiving $450,000 to increase the efficiency of their commercial pilot program, including the purchase and installation of an ALSIM ALX Flight Simulator in Saskatoon. The new simulator will attract more students to the program and enable them to have greater access to more flight hours.
• Miccar Aerial Ltd. is receiving $600,000 in repayable funding to scale up business operations in Yorkton and help launch a new replacement aircraft commuter seat, targeted at air charter operators in Canada and the U.S. PrairiesCan

Environment and Climate Change Canada (ECCC) announced the Environment and Climate Change Canada Meteorology Awards Program, with an investment of $648,000 in scholarship funds for eligible students entering studies that support the development of future meteorologists. For more than 150 years, ECCC has provided Canadians with quality weather forecasting services. As climate change and technology enhance the demand for Canadian meteorological expertise, the Government of Canada is stepping up to help train the next generation of meteorologists. Upon graduation, students will be eligible to apply for ECCC’s meteorology training program. The ECCC Meteorology Awards will provide 80 scholarships over four years to students enrolled in atmospheric science at one of the following eligible universities:

• Dalhousie University
• Université du Québec à Montréal
• McGill University
• York University
• University of Manitoba
• University of British Columbia. ECCC

The Department of National Defence’s (DND) Innovation for Defence Excellence and Security (IDEaS) program launched four new challenges under its Competitive Projects element:

• Stay connected: Seamless transitions between mobile broadband networks
• Unmasking biothreats: Identifying biological agents in the field
• Don't skip a beat: Medical diagnostics and sensing for combat operations
• Extended communication coverage: Exploiting connections of Earth and space systems

The Competitive Projects element is now operating under an updated innovation continuum and funding model. For more details, refer to the Competitive Projects web page. Proposals are due by March 27, 2025 at 2 p.m. EST. DND

RESEARCH, TECH NEWS & COLLABORATION    

The Government of Canada has formally submitted its 2035 nationally determined contribution (NDC) to the United Nations Framework Convention on Climate Change under the Paris Agreement. Canada’s new NDC aims to cut greenhouse gas emissions up to half below 2005 levels by 2035. Canada’s 2035 NDC reaffirms the government’s commitment to bold climate action and ongoing collaboration to ensure the country remains on track to meet its emissions reduction goals, Ottawa said. Canada’s emissions have dropped to their lowest level in almost three decades, excluding the pandemic years, and are significantly lower than pre-pandemic levels, the government said. As required by the Canadian Net-Zero Emissions Accountability Act, Canada’s 2035 target is informed by the best available science, Canada’s international climate commitments, Indigenous knowledge, and advice from the Net-Zero Advisory Body. Environment and Climate Change Canada

Energy Minister Jonathan Wilkinson announced Canada’s membership in the Global Offshore Wind Alliance (GOWA), which aims to mobilize international economies and agreements to accelerate offshore wind uptake. The Government of Nova Scotia and the Government of Newfoundland and Labrador also have joined GOWA as subnational governments. Through GOWA, Canada will gain access to international and industry expertise that will help strengthen the foundations of the country’s offshore wind industry, complementing notable gains that have already been made to expand the offshore wind industry in Canada. These include:

• The passage of Bill C-49 to amend the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act and theCanada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act, also known as the Accord Acts, which created the legislative framework for offshore renewable energy in the Atlantic region. 
• The coming into force of the Canada Offshore Renewable Energy regulations establishing safety and environmental protection requirements for project developers, which will serve as the foundation for future regulations under the Accord Acts.
• Regional assessmentsof offshore wind in Atlantic Canada, which examined potential effects of projects and proposed mitigation measures and will inform Canada’s next steps on potential future development in Atlantic offshore areas.
• Investments in supports and science-based activities to better understand and de-risk optimal areas for future projects, including the Offshore Wind Indigenous and Coastal Community Grant Initiative and the Atlantic Canada Offshore Wind Integration and Transmission Study. Natural Resources Canada

Federal Environment Minister Steven Guilbeault terminated the environmental assessment of a proposed $11-billion oil refinery in British Columbia aimed at processing 200,000 barrels per day (bpd) of Alberta oil. First proposed in 2016, Pacific Future Energy had envisioned the refinery near Kitimat, B.C., as a way to export refined petroleum products like gasoline, diesel and jet fuel to Asia. The project was to be fed from the now-defunct Northern Gateway pipeline, which was originally intended to transport 500,000 bpd of diluted bitumen from Alberta to the West Coast – and 200,000 bpd of natural gas liquids back again – before it was blocked by the federal government in 2016. Pacific Energy CEO Samer Salameh notified the Impact Assessment Agency of Canada (IAAC) on December 3, 2024 that the company no longer intended to proceed with the refinery. Newly released IAAC documents reveal that Guilbeault subsequently confirmed the termination of the environmental review effective February 11. The Western Standard

Saskatchewan is looking to refurbish its fleet of coal-fired power stations, extending their lives well past a federal government 2030 phase-out deadline and locking the province into decades of reliance on the fossil fuel. Jeremy Harrison, the minister responsible for SaskPower, said the reliability and affordability of power are at the heart of the policy rethink. About 30 percent of Saskatchewan’s electricity comes from its three coal-fired power stations: Boundary Dam and Shand, both near the small city of Estevan, 200 kilometres southeast of Regina, and Poplar River Power Station near Coronach, about 200 km west of Estevan. Roughly 100 years’ supply of coal is buried beneath the province, much of it close to the power plants in the southeast. That means Saskatchewan could take advantage of its own resources, avoiding imports of natural gas to feed power stations and circumventing price spikes for the fossil fuel, Harrison told The Globe and Mail. The three coal-fired stations have been in operation for between 30 and 50 years. Saskatchewan has Canada’s third-most emissions-intensive electricity system; it generates 26 percent of all of the country’s electricity emissions, despite only producing four percent of the power, according to the National Inventory Report on greenhouse gas emissions. Federal regulations amended in December 2018 accelerated the phase-out of all conventional coal-fired electricity in Canada to 2030. But the Saskatchewan Party government has said those rules are unconstitutional because power is under provincial jurisdiction. The Globe and Mail

A federal government agency created 14 years ago to streamline federal IT services says it has completed about two-thirds of its mandate but has no clear deadline for finishing the job. According to Blacklock's Reporter, despite employing 10,000 workers and spending billions on contractors last year, Shared Services Canada (SSC) has made gradual progress, according to an internal briefing note. The agency shifted to enterprise solutions instead of customized systems for each department, aiming to improve efficiency and security. The modernization effort is considered essential for reliable government service delivery, the note indicated. So far, SSC has closed 490 of 720 legacy data centres, with plans to shut down at least 22 more this fiscal year. Established in 2011 by the Department of Public Works, SSC was tasked with consolidating IT infrastructure amid concerns of costly duplication. The agency’s workforce remains largely technical, with IT employees making up about 64 percent of its 10,000-person staff. SSC also relies heavily on external contractors. In 2024, it awarded 12,320 contracts and amendments valued at approximately $4.3 billion, including 2,599 non-competitive contracts worth $565 million, according to the briefing note. Western Standard

Burnaby, B.C.-based legaltech company Clio donated $3 million to the University of British Columbia’s (UBC) Sauder School of Business, to fund a dynamic and purpose-built space designed to connect students, faculty and industry leaders in addressing complex challenges through creative new solutions and ventures. The new innovation hub, housed within the new Powerhouse Project building, will serve as the formal home of the nonprofit Creative Destruction Lab (CDL) – Vancouver. CDL delivers an objectives-based mentorship program for scalable, seed-stage science and technology-based companies across sectors such as cleantech, biomedical engineering and computing. Participating ventures have the opportunity to interface with and learn from individual and corporate partners, UBC students and pedigreed guests who bring a wide range of domain expertise and ecosystem connections. UBC

The University of Victoria Centre for Aerospace Research (CfAR) recently achieved a successful medical supplies delivery by drone demonstration at the North Island Hospital – Comox Valley, on Vancouver Island. The demonstration involved an electric, six-bladed hexacopter drone making a few flights with a simulated medical supply delivery across a field next to the hospital. The event highlighted innovative future opportunities – such as the use of drones to deliver pharmaceutical supplies or lab samples – which could especially benefit harder-to-reach communities. Island Health and UVic CfAR are exploring a potential partnership under the umbrella of the new North Island Research and Innovation Hub – and the demo was an important first phase in that process. Further demos are expected, likely north of Campbell River. A range of issues related to privacy, security, regulations, budgets and more will need to be addressed moving forward. Island Health

A University of Calgary (UCalgary) spinoff’s anti-spoofing technology is moving closer to the international market as part of the latest NATO DIANA (Defence Innovation Accelerator for the North Atlantic) innovator cohort. The project, Quantum-Resistant Anti-Spoofing Solution for Assured Positioning, Navigation and Timing, is from SDQ Solutions Canada, led by Dr. Susan Skone, PhD (a professor in UCalgary’s Schulich School of Engineering). SDQ’s project was selected as one of 75 from over 2,600 proposals to take part in NATO’s DIANA Challenge program. The DIANA Challenge accelerates the development of emerging and disruptive technologies across the NATO Alliance by giving companies access to mentors, capital, startup accelerators and end users across the alliance. The technology SDQ created addresses a critical need of autonomous platforms, like unmanned vehicles and drones, that operate in challenging environments: secure positioning, navigation and timing. Autonomous devices need reliable position information for navigation and the operator must be sure this navigation is functioning as intended. Devices using satellite-based navigation signals can be vulnerable to interference with disruptive intent. Anti-spoofing technology prevents others from interfering with the information used by the device and operator. UCalgary

Calgary’s life sciences sector welcomed Bore Da Biotech, a pioneering South Korean company to the research scene. Specializing in in-vitro diagnostics including reagents, antibodies and antigens, the company – led by CEO Dr. Dong Ok Choi – chose Calgary to establish its presence in North America. The company has secured space in the University of Calgary’s Life Sciences Innovation Hub. This move marks the first South Korean life sciences investment in Calgary. Expected to be a multi-year expansion to the city, phase one of the company’s move includes Bore Da Biotech re-locating several staff and hiring local talent to set up research operations in Calgary. In the coming months, phase two for the firm includes plans to invest $5 million to establish a new facility that integrates research, development and manufacturing. Calgary Economic Development

Montreal-based WSP Global Inc., an engineering and science-based professional services firm, and Microsoft Corp. announced a seven-year, global strategic partnership to accelerate the digitalization of the architecture, engineering and construction industry – representing a potential combined financial commitment and investment exceeding $1 billion. Under the partnership, WSP is designated as a Microsoft preferred partner for engineering and science consultancy, and also a Microsoft preferred digital and AI transformation partner, including an expansion of Microsoft 365 Copilot globally. As part of the partnership, Microsoft and WSP will work on increasing the speed and scale at which Microsoft can responsibly deliver mission-critical facilities, such as data centres, and bring new digital solutions to market, such as AI-powered virtual experts. WSP Global

A group of major U.S. media companies and the owner of the Toronto Star are suing Toronto-based AI developer Cohere over copyright infringement. In a complaint filed with a New York court, publishers including Condé Nast, McClatchy, Forbes Media and Guardian News allege Cohere has infringed on copyright by scraping copies of their articles from the internet without the publishers' permission or compensation. They allege Cohere then used the articles to train the large language models powering its AI services, which in turn "mimics, undercuts and competes" with the publishers and other "lawful" offerings. Many publishers already license their articles to AI companies, the media companies say in their lawsuit. “But Cohere improperly usurps publishers’ creative labour and investments for the sake of its own profits.” The media companies are asking the court for an order stopping Cohere from using their copyrighted works for training or fine-tuning AI models, along with up to $150,000 for every article they allege Cohere infringed. Cohere spokesperson Josh Gartner said he expects the court to side with Cohere because it has long worked to mitigate the risk of intellectual property infringement. "We believe this lawsuit is misguided and frivolous and expect this matter to be resolved in our favour,” he said in an email. OpenAI, the San Francisco-based creator of AI chatbot ChatGPT, was sued in November over similar copyright allegations. The coalition that brought that lawsuit forward includes The Canadian Press, Torstar, The Globe and Mail, Postmedia and CBC/Radio-Canada. The New York Times has also gone after OpenAI and Microsoft. The Canadian Press

Meta Platforms Inc. is making a significant investment in AI-powered humanoid robots – futuristic robots that can act like humans and assist with physical tasks. Meta is forming a new team within its Reality Labs hardware division to conduct the work. The team will be led by Marc Whitten, who resigned as CEO of General Motors Co.’s Cruise self-driving car division earlier in February. Meta plans to work on its own humanoid robot hardware, with an initial focus on household chores. Its bigger ambition is to make the underlying AI, sensors and software for robots that will be manufactured and sold by a range of companies, said sources, who asked not to be identified because the initiative hasn’t been announced. Meta has started discussing its plan with robotics companies, including Unitree Robotics and Figure AI Inc. At least initially, Meta doesn’t plan to build a Meta-branded robot – something that could directly rival Tesla Inc.’s Optimus – but it may consider doing so in the future. The humanoid effort mirrors exploratory projects at other technology giants, including Apple Inc. and Alphabet Inc.’s Google DeepMind division. BNN Bloomberg

Bolt Technology OU, the Estonia-based rival to Uber Technologies Inc., is recruiting drivers ahead of launching ride-hailing services in major Canadian cities, extending a recent push into the North American market. Bolt, which offers ride-hailing, food delivery and scooter rentals in more than 45 countries in Europe, Africa, Asia and Latin America, is doing business under the app name “Hopp” in the U.S. and Canada. The FAQ section of its driver recruitment site says it’s preparing to launch the service in five of the most populous cities in Ontario: Toronto, Mississauga, Markham, Vaughan and Richmond Hill. Financial Post

Two Edmonton developers are looking to support Canadian businesses with their newest app. The effort by William Boytinck and Matthew Suddaby to create the Shop Canadian app comes as people across the country look to shop local amid tariffs threatened by U.S. President Donald Trump. With a quick scan on your phone, the app will tell you if a product is Canadian made or not using a product standardization database. “We have close to 10,000 companies already registered and, at this point, close to 15,000 unique products scanned,” Boytinck said. The app uses a rating system for customers to collect crowd-sourced information. CTV News

Canada’s tech ecosystem players have spearheaded a crop of tariff-response initiatives designed to promote products from fellow Canadian startups, track the impact of tariffs on supply chains, and encourage consumers to buy domestically made products. ByCanada.Tech, a new “coast-to-coast startup directory” has emerged as the most comprehensive database of Canadian tech companies so far. The website was founded by Derek Jouppi, founder and CEO of Advite.ai, with the goal of providing Canadian alternatives to well-known American tech products. The website allows users to search for Canadian alternatives to U.S. tech products, such as Toronto-based HOVR instead of Lyft and Winnipeg-based Bold Commerce instead of Stripe. Ian Paterson, CEO of Plurilock, listed FinTech companies that his company “trusts to get the job done,” including Float, Plooto, Certn, and Vault. Mhairi Petrovic, founder of Vancouver-based Out-Smarts Marketing, shouted out Thinkific and Jane App. Siamak Sartipi, founder and CEO of Waterloo-based portfolii, listed Igloo Software as an alternative to Slack or Microsoft Teams. The Business Data Lab’s Canada-US Trade Tracker, associated with the Canadian Chamber of Commerce, provides up-to-date data on the value of cross-border trade across sectors and by geographic region. The Buy Beaver app, previously known as IsItFromCanada.ca, launched on February 6 as a grocery-scanning community platform to encourage users to buy locally. BetaKit

U.S. President Donald Trump’s threat to impose reciprocal tariffs targets America’s global trading partners for a wide range of practices that Trump sees as unfair to U.S. exports, including Canada’s federal sales taxes, export subsidies and potentially much, much more. Speaking in the Oval Office, the U.S. president cited value-added sales taxes, European airport landing fees for U.S. airlines, and digital services taxes imposed by Canada and several European countries. “Though America has no such thing, and only America should be allowed to tax American firms, trading partners hand American companies a bill for something called a digital service tax,” according to a White House fact sheet, adding that France and Canada collect US$500 million a year in digital services taxes from American firms. In a memo, Trump gave U.S. trade officials 180 days to study trade and come up with a plan for reciprocal tariffs. The digital services tax imposes a three percent tax on digital service companies with more than $20 million of revenue from Canadian sources. While it officially became law last year, the first payments aren’t due until this June and will be retroactive to 2022. Toronto Star

Natural gas industry’s hydraulic fracturing operations triggered a record number of earthquakes in B.C.’s Peace River region in 2024

Induced, or human-caused, earthquakes have become common in B.C.’s Peace River region’s Montney Formation, which contains gas and light oil reserves, since hydraulic fracturing, or fracking, began 20 years ago, according to a study by Allan Chapman at Chapman GeoResearch.

A record number of magnitude 3 or greater earthquakes occurred in 2024, his study said.

The volumes of frack fluid injected per well and the mass of proppant injected per well both have increased steadily year-over-year, to record highs in 2024, according to the study.

B.C.’s current regulations haven’t succeeded in preventing the substantial increase in magnitude 3 and greater earthquakes, nor have the regulations demonstrated an ability to predict where these earthquakes will occur, the study noted.

“Given the anticipated large increase in drilling and hydraulic fracturing to feed B.C.’s nascent LNG operations, the record-setting rate of [magnitude 3 or greater] earthquakes is concerning, pointing to the need for enhanced protections for at-risk populations.”

“Significant increases in the frequency of induced earthquakes appear to be the future for B.C.’s Peace River region," Chapman’s study said, adding that “potentially damaging earthquakes should not be unexpected.”

The B.C. Energy Regulator has toughened up its oversight of induced seismic activity after a series of earthquakes linked to the natural gas industry’s hydraulic fracturing operations in the northeastern corner of the province.

The orders require operators in the area to immediately halt fracking operations if they trigger a seismic event of a certain magnitude.

The orders from the energy regulator also require real-time seismicity monitoring and the submission of pre-assessments with each notice of operation.

John Cassidy, a seismologist with Natural Resources Canada, said the regulator has confirmed that four quakes between February 8 and February 12 were related to fracking operations.

The quakes ranged in magnitude from 3.1 to 4.7, with the most powerful felt in Fort St. John, B.C., about 105 kilometres southeast of the epicentre.

Earthquakes triggered by fracking in B.C. typically result from the injection of material into shallow wells to open up fractures and release gas for extraction, and almost all of the induced quakes are "tiny,” Cassidy said. "There have been no recorded earthquakes large enough to cause damage in the area."

Over the last year, there have been five quakes in the range of magnitude 4 within 100 kilometres of the most recent series, as well as 29 quakes of a magnitude of 3 to 3.9, and 74 quakes with a magnitude of 2 to 2.9, Cassidy said. CBC News

VC, PRIVATE INVESTMENT & ACQUISITIONS

Toronto-based Hydrostor, an energy storage developer and operator, secured US$200 million from the Canada Growth Fund Inc., Goldman Sachs Alternatives, and the Canada Pension Plan Investment Board. Hydrostor said the transaction will support the company’s continued investment in advanced compressed air energy storage projects in Canada and around the world. The transaction includes a US$150-million convertible note financing commitment from the investors. In addition, the Canada Growth Fund has made available an additional US$50 million loan facility to fund a portion of development costs for Hydrostor’s Canadian projects, such as the Quinte Energy Storage Centre project, a 500-megawatt/4,000-megawatt-hours compressed air energy storage project to be developed in Lennox and Addington County, Ontario. BusinessWire

London, U.K- and San Francisco-based biotech startup Latent Labs raised US$40 million in a Series A funding round co-led by Toronto-based Radical Ventures and Sofinnova Partners, along with backing from Flying Fish, Isomer, 8VC, Kindred Capital, Pillar VC, and notable angel investors such as Google’s chief scientist Jeff Dean, Cohere founder Aidan Gomez, and ElevenLabs founder Mati Staniszewski. Latent Labs, founded by Simon Kohl, a former scientist at Google DeepMind, is focused on using artificial intelligence to design and optimize proteins, enabling researchers to create new therapeutic molecules using AI. Kohl co-led the DeepMind team responsible for a breakthrough that made it possible to predict the shape of about 200 million protein structures. A large portion of this funding will go toward hiring machine learning talent and covering the high cost of computing power, Latent Labs said. The global biologics market is expected to grow to US$1.37 trillion by 2033. XRP Healthcare Magazine

Alberta Investment Management Corp. (AIMCo) has closed its new offices in Singapore and New York as it retrenches from its global expansion plan. Alberta’s $160-billion pension fund also parted ways with David Scudellari, its global head of private assets, and Kevin Bong, the executive who ran the Singapore office. Peter Teti has been tapped as interim head of private assets. It’s a major reversal for the money manager, which opened the Singapore office in 2023 and the New York location just last year. Alberta’s finance minister set the restructuring in motion in November when he fired AIMCo’s entire board and CEO Evan Siddall, who had championed the growth plan. BNN Bloomberg

Institutional investors with $1.5 trillion in funds have told asset managers to step up on climate action or risk being dumped, in a sign of a split in the investment industry over how to deal with the financial risks of global warming. In new guidelines, a group of 26 financial institutions and pension funds from Australia to the U.S., including Scottish Widows, the People’s Partnership and Brunel Pension Partnership, asked their asset managers to more actively engage with the companies they are invested in about their climate risk. The asset owners group argued that climate change was a long-term financial risk, particularly for pension funds that would need to pay out retirement incomes for decades to come. The group set out a series of expectations from their asset managers, which it said would be included in how they are assessed, with the threat of a downgrade or withdrawal of the funds. Financial Times

REPORTS & POLICIES

Researchers’ current use of AI is limited but most expect AI in research will become mainstream within a few years

Current use of artificial intelligence among researchers is fairly limited, both in terms of tools used and tasks done, according to a study by New Jersey-based publishing company Wiley.

Still, more than half of the researchers surveyed for the study said they anticipate many use cases of AI in research will become mainstream in the next few years.

“What really stands out is the imminence of this,” Sebastian Porsdam Mann at the University of Copenhagen, who studies the practicalities and ethics of using generative AI in research, said in an article about the Wiley study, published in Nature.

 “People that are in positions that will be affected by this – which is everyone, but to varying degrees – need to start” addressing this now, Mann said.

The study is based on a survey of almost  5,000 researchers in 70 countries about their use and perceptions of generative AI tools for research.

The majority of researchers said they want to expand their usage of AI within the next two years, such as for preparing manuscripts (72 percent), handling large information sets (67 percent), or supporting research accessibility and sharing (65 percent).

Highlights of the study are:

Current state: Researcher uses, needs and expectations for AI

• Among researchers, current use of AI is fairly limited, both in terms of tools used and tasks done. When asked which generative AI tools they’d heard of prior to the survey, most (90 percent) had heard of and used (81 percent) or tried OpenAI’s ChatGPT, but few were familiar with other tools. Overall, about 45 percent of researchers said they have already used AI at some point in their research process.
• Despite limited current use, researchers know that developing AI skills will be highly important to them personally in the near future. Sixty-nine percent think it will be at least somewhat important in the next two years, and within five years 79 percent of researchers think AI skill building will be very important.
• Uncertainty is a major barrier to researchers making the most of AI’s potential. When asked what barriers or obstacles were preventing them from using generative AI in their work to the extent that they’d like, 63 percent said a lack of clear guidelines and consensus on what uses of AI are accepted in their field and/or the need for more training and skills. Eighty-one percent of researchers have one or more core concerns about the AI models themselves.

Exploring AI use cases to get to actionable insights

To go beyond sentiment and surface trends around AI – and gain some practical insights to guide researchers in taking action – the study collected input on a total of 43 potential AI use cases across the research process. In addition to specific insights into individual use cases, this yielded some macro-level trends:

• Researchers have a strong interest in using AI in a wide variety of ways. For 39 of the 43 use cases tested, a majority of researchers were interested in personally using generative AI in the near future.
• Researchers already consider AI to be capable of taking on many tasks. For over half of the use cases tested (23 out of 43), a majority of researchers already believe AI outperforms humans.
• Researchers anticipate wide and fairly rapid acceptance of AI. Most use cases (34 out of 43) are expected to have widespread acceptance and approval within the next two years.
• Even researchers who want to be later adopters of AI show strong interest in personally using AI and expect acceptance to progress rapidly. Most later adopters are personally interested in using AI for close to half of use cases (18 out of 43) and expect over half of use cases (25 out of 43) to achieve broad acceptance in the next two years.

Mapping the consensus view of AI use cases

To better understand and visualize the potential for each of the 43 AI use cases, the study focused on two key dimensions: interest and AI versus human performance. Mapping use cases from each step of the researcher’s journey to quadrants based on these metrics revealed additional insights about the role of AI in the research process.

• Determining what to research: When deciding what to research, researchers are ready to use AI to review large bodies of information but are largely in agreement that the technology isn’t yet ready to anticipate new developments in their field.
• Conducting the research: Use cases in this phase of research were generally less interesting to researchers; however, again, they are ready to use AI for use cases relating to handling large amounts of information.
• Preparing for publication: This phase of research has many highly popular current use cases, showing that researchers are ready – and interested in – using AI for self-checks and tools to assist in building out their manuscripts.
• In contrast to preparing for publication, researchers currently prefer humans over AI for the majority of peer review-related use cases – a strong indication they want human judgment to remain central to the peer review process.
• Promoting and sharing an article: Researchers view AI as being able to outperform humans in many post-publication tasks. However, researchers tend to be less interested in these applications of AI, with the exception of use cases related to increasing the accessibility of their work.

Based on the survey’s findings, Wiley created a framework to help researchers explore the potential for AI to serve them in their research.

The framework recommends taking action now for current use cases where AI is already poised to make a difference and interest is high, including:

• Manuscript preparation and writing assistance. On average, 72 percent of researchers are interested and 62 percent say AI outperforms humans. This includes use cases such as self-checks for errors/bias and plagiarism, writing assistance, automatic submission and populating citations.
• Handling large information sets. On average, 67 percent are interested and 60 percent say AI outperforms humans. This includes use cases such as reviewing large amounts of studies, monitoring new publications, a custom GPT for their field, and data collection, processing and visualization.
• Research accessibility and sharing. On average, 65 percent are interested and 58 percent say AI outperforms humans. This includes use cases such as generating plain language summaries and knowledge management agents.

The framework recommends watching for near-term opportunities with high interest and growing AI capabilities, including:

• Generating predictions and recommendations. On average, 64 percent are interested but 56 percent say humans lead or match the abilities of AI. This includes use cases for predicting trends and identifying gaps in the literature and generating recommendations for references, journal selection and peer reviewers.
• Offloading essential but less engaging work. On average, 58 percent are interested in using and 57 percent say humans lead or match the abilities of AI. This includes handling administrative tasks and finding and applying for funding opportunities.

The framework recommends envisioning “stretch” and ambitious use cases that aren’t yet feasible or strongly desired, but have the potential to address future needs.

• AI to enhance research methods and collaboration. On average, 54 percent are interested and 58 percent say humans lead or match the abilities of AI. This includes use cases such as writing up documentation, identifying collaborators and optimizing experimental design.
• Automated content generation for increasing article reach and impact. On average, 53 percent are interested and 51 percent say humans lead or match the abilities of AI. This includes generating multimedia to broaden interest in articles, generating educational content based on articles, and generating video abstract/explainer.
• AI-augmented peer review processes. On average, 56 percent are interested and 59 percent say humans lead or match the abilities of AI. This includes adapting reviewer feedback into a standardized format, peer reviewer recommendation tool, and increasing the speed and ease of peer review.

Wiley said its data shows there is currently no strong consensus among researchers on where to go for guidance in using AI, apart from close colleagues.

However, when researchers were asked specifically about the role of the publisher of research, there was a strong desire for publishers to help researchers in navigating their AI journey.

• 70 percent of researchers want publishers to provide clear guidelines on which uses of AI are acceptable when publishing scholarly research. In Canada, this figure rises to 80 percent of researchers.
• 69 percent want publishers to help avoid potential pitfalls, errors and biases.
• Over half want publishers to share best practices and guidance for safe and responsible use of AI.

“With nearly two-thirds of researchers also citing a lack of guidance and training is preventing them from using AI to the extent that they would like, it’s not surprising that researchers view this as a key role for publishers to play,” the study says.

“While researchers may not think of publishers as their first line of support in using AI, this study shows that publishers need to be proactive in creating policies and guidelines and in communicating them to the research community.” Wiley

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Foreign tech firms in Canada provide a critical training ground for Canadian startup founders: Centre for Canadian Innovation and Competitiveness

Canada would be making a mistake if it reduced the number of foreign tech firms in the country and relied almost exclusively on domestic firms, especially startups, according to the Centre for Canadian Innovation and Competitiveness.

As is true in so many nations, multinationals provide important knowledge transfers and training, Lawrence Zhang, head of policy at the centre, wrote in his commentary. The Ottawa-based centre is affiliated with the Washington, D.C.-based Information Technology & Innovation Foundation.

“It turns out that the founders of many of Canada’s most successful tech firms gained critical experience working for foreign multinational tech companies,” Zhang said.

These firms, from U.S. giants like Google and Microsoft to other global players, are significant training grounds for Canadian entrepreneurial talent.

A LinkedIn review of 300 randomly selected tech startup founders in Canada found that 41 percent had previously worked for foreign multinational tech companies in Canada.

Ninety-five founders had worked for U.S. tech companies, while 30 had similar experiences with non-U.S. foreign tech companies.

More than a quarter of the remaining 175 founders had experience working for multinational consulting firms or had the majority of their prior work experience outside of Canada.

“The experience of working for these multinational tech companies provides a foundation for launching successful Canadian tech startups,” Zhang said.

“Indeed, the founders of many of Canada’s most well-known tech scaleups, like 1Password, Wattpad, and Ritual, drew on their experiences working in Canada for foreign tech companies.”

Zhang said while working for a foreign tech firm is certainly not the only pathway to success, the resources, learning and exposure offered by these firms often provide individuals with critical skills for kickstarting their own ventures.

For instance, their prior experience at global tech firms likely provides these founders with the opportunity to pick up best practices in software development, project management and operations that are all directly transferable to their new entrepreneurial journey, he said.

On top of that, as foreign tech firms tend to have highly competitive salaries and benefits packages, founders can better reduce their personal financial risk when taking the leap to start a new company, he noted.

Finally, exposure to global technology trends and awareness of unfulfilled niches helps founders develop companies and products that are better able to solve problems that exist in wider markets rather than exclusively in domestic markets, Zhang argued.

He said if Canada were to follow through on the destructive advice of domestic techno-economic nationalists (he specifically pointed to Jim Balsillie, co-founder and chair of the Council of Canadian Innovators) by discriminating against foreign tech companies and reducing the role that these companies play in the Canadian economy, many of these jobs could dry up.

“Foreign multinational companies may be convenient scapegoats for why Canadian tech companies have seen little large-scale success on the global stage, but their presence is not a negative,” Zhang said.

These firms are complementary and additive to the domestic tech economy, he argued. With companies like Google, Ericsson, and Microsoft all having invested hundreds of millions into Canada’s economy in just the last few years and employing tens of thousands of Canadians, “it is an immense mistake to discount the role that foreign tech companies play: employment, knowledge spillovers and technology advancement.”

Canada’s tech ecosystem benefits from the presence of foreign multinational companies, not only through job creation and investment but also by serving as a training ground for future entrepreneurs, Zhang said. “Their role in equipping Canadian founders with global skills, networks, and perspectives is critical.”

Instead of viewing foreign tech companies as competitors to domestic innovation, Canada must embrace their complementary role in fostering a vibrant, interconnected tech ecosystem, he said.

“Ultimately, the key lies in striking a balance – leveraging the resources and opportunities these companies bring while supporting and building up Canadian companies that can compete on a global stage.” Information Technology & Innovation Foundation

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International student graduates in Canada are less likely to be employed and earn “substantially” less than their Canadian counterparts: Statistics Canada

Of international students who graduated in 2020 and who were still in Canada in 2023, 88.6 percent were employed, according to a Statistics Canada (StatsCan) study.

In comparison, the 2023 employment rate for 2020 graduates who were not international students was 91 percent.

The study, International student graduates' labour market early outcomes: Results from the National Graduates Survey, examines the labour market of international students who completed a postsecondary education program in 2020.

The study covers 83,300 international student graduates who remained in Canada after completing their studies in 2020 and did not pursue further postsecondary education. International students accounted for just under one-quarter (24 percent) of all 2020 graduates.

Most (88.6 percent) of the 2020 international student graduates who remained in Canada and did not continue their studies were employed three years after graduation.

However, their employment rate was lower than that of Canadian graduates (91 percent), suggesting a more challenging school-to-work transition for international students.

In 2023, the difference between the employment rates of international student graduates and Canadian graduates was larger at the bachelor's level (84.5 percent for international student graduates; 91.9 percent for Canadian graduates).

Similarly, significant gaps were observed for master's (91.3 percent for international student graduates; 94.6 percent for Canadian graduates) and doctoral (90.6 percent for international graduates; 94.2 percent for Canadian graduates) levels.

No significant difference was observed among college graduates.

One way of determining whether graduates are getting a job that matches their level of education is to examine whether their current level of education matches that required for the job they have, StatsCan noted.

In 2023, international student graduates with a college diploma or a doctorate were just as likely as Canadian graduates with the same level of education to work in a job matching their level of education.

However, international student graduates with a bachelor's or master's degree were less likely than their Canadian counterparts to hold a job corresponding to their level of study.

For example, in 2023, 36.6 percent of international student graduates with a bachelor's degree held a job that typically requires a university degree (bachelor's, master's or doctorate), compared with 58.8 percent of their Canadian counterparts.

The study found that more international students ended up in jobs in science fields, compared with Canadian graduates – 21 percent compared with 16 percent.

Canadian graduates were disproportionately represented in humanities-focused occupations such as law, education and government services. Twenty-three percent of Canadian graduates found jobs in those fields compared with seven percent of foreign graduates.

Consistent with past StatsCan research, the median annual employment income of international student graduates who worked full time in 2023 was lower than that of Canadian graduates.

This situation was true for all levels of study, but the difference was most notable at the bachelor's and master's levels.

In 2023, for example, the median annual employment income of international student graduates with a bachelor's degree ($52,000) was 20.2 percent lower than that of Canadian bachelor's graduates ($65,200).

Part of this difference can be explained by the differences in occupations between international student graduates and Canadian graduates. International student graduates with a bachelor's were over three times more likely to work in sales and service occupations (30.6 percent) than Canadian graduates (9.5 percent).

Despite certain challenges in the labour market, international student graduates reported having similar levels of overall job satisfaction (81 percent) and perceived job security (75.8 percent) compared with Canadian graduates (82 percent overall job satisfaction; 79.1 percent perceived job security) in 2023.

However, international student graduates reported having lower rates of salary satisfaction in 2023. For example, at the bachelor's level, 48.7 percent of international student graduates were satisfied with their salary, compared with 58 percent of Canadian graduates. StatsCan

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AI has the potential to boost the efficiency and success of drug development across the entire development chain: ITIF study

Artificial intelligence has the potential to boost the efficiency of drug development, accelerating the delivery of new therapies and fostering competition, which could improve public health outcomes, according to a study by the Information Technology & Innovation Foundation (ITIF).

Drug development is a costly, lengthy and risky process, marked by declining productivity, the study said. Bringing a new drug to market can cost billions of dollars and take over a decade, with fewer than eight percent of early candidates succeeding.

AI applications span the entire drug development pipeline – from speeding up drug discovery and enhancing clinical trials to streamlining manufacturing and supply chains, said the study by Sandra Barbosu, associate director of the Center for Life Sciences Innovation at the Washington, D.C.-based ITIF.

AI applications across various phases of drug development could enhance R&D productivity, increase drug output and foster competition, driving innovation and expanding access to novel therapies to improve societal welfare, Barbosu said in her study.

This increased drug supply can, in turn, drive consumer benefits through market competition. Furthermore, AI could accelerate the discovery of new therapeutic targets and drug candidates for the thousands of diseases that still lack treatment options.

However, for broader, effective adoption of AI in drug development, key challenges such as data quality and availability, potential for algorithmic bias, workflow integration and regulatory guidelines must be addressed, according to the study.

Policies that impose price controls or weaken intellectual property protections may aim to lower drug prices, but are known to dampen incentives for future drug research and development and fail to improve R&D productivity, the study noted.

A more sustainable approach is to pursue policies that maximize the value of R&D investment, the study said. “Enhancing R&D productivity, especially in light of declining returns and rising risks that increase the cost of capital – a major factor in drug development costs – offers a more effective path to maximize public health returns, promote equitable access and drive economic growth.”

While estimates vary widely across therapeutic areas, recent figures suggest that the R&D cost of bringing a new drug to market could be up to $2.83 billion (uncapitalized), factoring in pre- and post-approval R&D, such as new indications, patient populations, and dosage forms – or, capitalized at an annual rate of 10.5 percent, up to $4.04 billion, the study said.

According to a 2021 Biotechnology Innovation Organization report, it takes more than a decade for a drug to reach the market, and only 7.9 percent of Phase I clinical trial candidates ultimately receive approval.

Despite advances in fields such as pharmacology, synthetic biology and biotechnology and next-generation genetic sequencing techniques, alongside a significant increase in resources, several indicators suggest that biopharmaceutical innovation is slowing or plateauing, Barbosu’s study noted.

Notably, there has as yet been no significant corresponding increase in the number of new drug launches, clinical trial success rates have decreased, and the overall length of drug development has increased.

Quantum computing, while still in the early stages, can complement AI by solving problems beyond the capabilities of classical computers – such as molecular simulations and protein folding – both critical for modeling biological systems and identifying new drug candidates. “Together, these technologies can accelerate biopharmaceutical innovation, offering more efficient pathways to novel therapies.”

A key AI limitation lies in performing advanced causal inference – an essential task that requires human judgment. While AI is adept at identifying correlations, such as linking a target to a disease, it struggles to grasp the complex underlying biological mechanisms that explain why these links exist – a crucial aspect of effective drug development.

Still, in drug discovery, AI accelerates the analysis of large datasets to identify promising compounds, reducing the time and cost of finding new drug candidates.

During preclinical testing, AI models simulate biological processes to predict how a drug will behave in humans, reducing reliance on animal testing.

In clinical trials, AI can optimize patient selection, improve trial design and speed up data analysis, leading to faster, more accurate outcomes. It can also streamline the regulatory process by assisting in the preparation of complex documentation required by regulatory agencies. Finally, in manufacturing, AI can enhance production processes, improving efficiency and ensuring consistent quality.

“By integrating AI throughout these stages, the process of bringing a new drug to market can become more efficient, possibly bringing much-needed therapies to market quicker.”

AI adoption in drug development faces several significant challenges, the study said. Data access and privacy issues present substantial hurdles, as stakeholders – including healthcare providers, pharmaceutical companies, researchers, and federal agencies – must collect and share vast amounts of data to develop effective AI models.

Additionally, validating AI algorithms is essential to address concerns about the “black box” nature of how AI systems arrive at decisions and to mitigate possible biases, thereby building trust in these technologies.

Integrating AI with existing workflows also can be challenging, especially in the face of unclear regulatory pathways. Misaligned incentives, including fears of job displacement, may further slow adoption.

Supporting the adoption of AI in drug development requires a comprehensive approach that combines public policies to address a number of technical, operational and regulatory challenges while fostering innovation, the study said.

The study makes several recommendations for policies that could promote effective AI integration in drug development:

• Additional policies that support privacy-enhancing data sharing and access.
• Governments could significantly advance research in AI-enabled drug development by increasing funding for key initiatives.
• Governments should also invest in AI and data science training to prepare the next generation of scientists for AI-supported drug development, including updating medical and pharmaceutical curricula to reflect advances in AI.
• Regulatory policies that clarify and simplify the review process for the use of artificial intelligence/machine learning in drug development – and adopt a risk-based approach, recognizing that some applications, such as in drug discovery, are lower risk than others – could encourage the wider adoption of these tools. Regulators from different countries could also coordinate to create harmonized standards and approval processes for AI-supported drug development, benefiting both regulatory agencies and pharmaceutical companies operating in multiple countries.

A supportive public policy framework is key for the effective and responsible integration of AI in drug development, the study concluded. Key elements of such a policy framework include:

• public funding for basic research related to AI in drug development.
• educational initiatives to prepare the workforce for an AI-supported future in biopharmaceutical innovation.
• support for tools that enable privacy-enhancing sharing of and access to high-quality data.
• collaborations through efforts such as public-private partnerships.
• development of a risk-based regulatory approach for evaluating AI tools, tailored to the level of risk each AI application may pose to patients.

“Such policies are essential to unlocking AI’s full potential in drug development, enabling faster delivery of potentially life-saving therapies and expanding patient access.” ITIF

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Canada can become a leader in the international biofuels sector by taking advantage of next-generation biofuels: C.D. Howe Institute brief

Canada can become a leader in the biofuels sector by strengthening mandates, supporting innovation, developing new sustainable energy crops and negotiating fair access to U.S. markets, according to a brief from the C.D. Howe Institute.

Most Canadian cars will run on conventional fuel for the foreseeable future, allowing Canada to take advantage of the latest generation of biofuels, said the brief, by Werner Antweiler, associate professor and chair of the strategy and business economics division at the University of British Columbia’s Sauder School of Business.

The earliest iterations of biofuels were blend-in fuels: ethanol and biodiesel, mostly made from corn in Canada. However, engine compatibility issues imposed blending limits, usually 10 percent for most auto fuel grades.

But the next generation are drop-in fuels that are chemically the same as ordinary fuels, Antweiler said in a recent C.D. Howe Institute study.

“Canada has great potential to produce biofuels to aid in the transition to a low-carbon economy, but developing the full potential requires using sustainable feedstocks and driving down production costs,” according to the study.

Recognizing the limitations of industrial policy and letting the market drive innovation will avoid costly subsidies and mistakes, he said.

The next generation of drop-in biofuels includes renewable diesel for trucks, sustainable aviation fuel for planes and biomethane for homes and industry.

They also rely on feedstocks – currently canola oil and tallow – but can eventually shift toward using dedicated energy crops, such as perennial grass and fast-growing trees that can be grown on marginal agricultural land, easing concerns about competition with food production.

Also, commercialization is scaling up, Antweiler noted. In February, Braya Renewable Fuels started making renewable diesel at a converted Newfoundland refinery with an initial capacity of 1 billion litres per year.

Imperial Oil is building a similar-sized plant as an extension to its Strathcona refinery near Edmonton, and in B.C., Tidewater Renewables has built a smaller plant in Prince George.

This growth is driven by federal and provincial biofuel mandates, Antweiler said.

Overall monthly production either of ethanol or biodiesel in Canada remains in the 150 million to 200 million litres range, except for a significant jump in the “biodiesel etc.” category production in March 2024, according to his study.

This production is almost exclusively based on food crops, primarily corn and to a lesser extent wheat. About 400,000 metric tonnes of food crops are converted into biofuels every month. 

B.C.’s Low Carbon Fuel Standard aims to reduce its fuel carbon intensity by 30 percent by 2030. The federal government’s Clean Fuel Regulations also have the goal of a modest 15-percent reduction by 2030.

“The heart of the biofuel mandate is rigorous accounting of greenhouse gas emissions over the entire life cycle of production,” he said.

Taking into account the differences in carbon intensity among feedstocks and production pathways, a market for trading compliance credits ensures that financial incentives are proportional to emission reductions. “Therefore, the cleanest fuels get the most support.”

First-generation biofuels were criticized because of limited lifecycle emission savings, competition with food production and, in some cases, expensive subsidies. The lifecycle approach avoids these distortions, Antweiler said.

Concern that importing biofuels could contribute to deforestation or water shortages means the federal mandate disallows foreign biofuels that do not meet agricultural sustainability criteria, he pointed out.

Ottawa has also put new money into its Clean Fuels Fund, which aims to de-risk investments in new facilities and conversions of existing facilities. “It’s a start, and the focus needs to be on promoting innovation to reduce production costs.”

The U.S. government promotes biofuels through production tax credits. But Antweiler said this risks becoming a trap: When the program becomes too successful, subsidies become fiscally unsustainable.

In Canada, fuel producers compete to sell the lowest-cost biofuels that comply with the biofuels mandate. “Without direct subsidies, there is no risk of falling into the fiscal trap.”

Federal Budget 2024 included a commitment of $776 million towards a retooled Clean Fuels Fund to support biofuels between 2024/25 and 2029/30.

Ottawa also intends to disburse up to $500 million per year from Clean Fuel Regulations (CFR) compliance payments in support of biofuels production in Canada.

How the Clean Fuels Fund program will support biofuels production depends on forthcoming regulations that are still being worked out, while $500 million in CFR funding and another $500 million support from the Canada Infrastructure Bank were already committed to in the 2024 budget.

“Ethanol was left out purposefully – to the chagrin of an industry that was expecting to receive benefits similar to those in the United States,” Antweiler said.

If a new federal government were to abandon carbon pricing on motor fuels, this might not spell the end for meaningful climate action on decarbonizing transportation, he said.

“The biofuels mandate has the enormous advantage of lowering emissions from the entire existing vehicle fleet quickly, and costs will drop as biofuels production ramps up.”

If Ottawa were to embrace a more ambitious emission intensity-reduction target, it could make up for some of the negative consequences of removing carbon pricing from motor fuels, he said.

Combined with continuing support for electric vehicle adoption, climate action for Canada’s transportation sector could still thrive – and create many new jobs in the biofuels industry, especially in the Prairie provinces, Antweiler said.

Access to U.S. markets also will help Canada’s biofuels industry grow, he said. Currently, Canadian producers cannot benefit from U.S. incentives, while Americans do from Canada’s programs. Reciprocal market access should be on Ottawa’s to-do list in forthcoming trade negotiations, he said.

“Longer-term, innovation will drive the energy transition. With biofuels and batteries becoming continuously cheaper, price parity with conventional fuels and vehicles is firmly in sight.” C.D. Howe Institute

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Current rate of global warming set to transform the Arctic “beyond contemporary recognition:” international study

The current level of global warming would transform the Arctic “beyond contemporary recognition,” according to a Canadian-led international study.

Under current nationally determined contributions (NDCs) to mitigate greenhouse gas emissions, global warming is projected to reach 2.7°C above preindustrial levels, the study said.

At such a level of warming, the Arctic would be transformed beyond contemporary recognition: Virtually every day of the year would have air temperatures higher than preindustrial extremes; the Arctic Ocean would be essentially ice free for several months in summer; the area of Greenland that reaches melting temperatures for at least a month would roughly quadruple; and the area of permafrost would be roughly half of what it was in preindustrial times.

“These geophysical changes go along with widespread ecosystem disruptions and infrastructure damage, which . . . could be substantially reduced by increased efforts to limit global warming.”

The study, published in Science, was led by Julienne Stoeve, senior research scientist at the National Snow and Ice Data Center and professor at the Centre for Earth Observation Science at the University of Manitoba.

“The Arctic is warming at four times the rate of the rest of the planet,” Stroeve said.

“At 2.7 degrees Celsius of global warming, we will see more extreme and cascading impacts in this region than elsewhere, including sea-ice-free Arctic summers, accelerated melting of the Greenland Ice Sheet, widespread permafrost loss, and more extreme air temperatures. These changes will devastate infrastructure, ecosystems, vulnerable communities and wildlife,” she said.

Other co-authors on the paper included Jackie Dawson of the University of Ottawa, Edward A.G. Schuur of Northern Arizona University, Dorthe Dahl-Jensen of the University of Manitoba and University of Copenhagen, and Céline Giesse of the University of Hamburg.

"The Arctic seas have already become unrecognizable," Schuur said. "The amount of ice we're left with at the end of the summer keeps declining over time. Soon enough, summer ice could become a thing of the past" – changing the lives of people who live in the region, opening up new shipping routes and unleashing new international relations quagmires.

"We can't stop change from happening; it's already happening," Schuur said. "But we can slow the change by reducing greenhouse gas emissions and managing the change as best as we can so that people and ecosystems are better positioned for the future."

“Our paper shows that, already today, mankind has the power to wipe out entire landscapes from the surface of our planet,” said Dirk Notz, professor for polar research at the University of Hamburg and co-author of the study.

Urgent action is desperately needed to reduce greenhouse gas emissions to slow warming and protect the Arctic, as well as the systems elsewhere impacted by changes in the far North, Notz said. “It’d be amazing if we could become more aware of this power and the responsibility that goes with it, as the future of the Arctic truly lies in our hands.” Science Daily

THE GRAPEVINE – News about people, institutions and communities

The Alberta Energy Regulator (AER) named former oil and gas company CEO Rob Morgan as the AER’s new CEO. Morgan most recently led Strathcona Resources. He takes over from Laurie Pushor, who announced his retirement last August. The AER said Morgan brings industry experience, skills and knowledge to help the AER "turn the page" as a "responsible and effective regulator." The AER has been criticized for how it informed the public and local First Nations about the release of millions of litres of oilsands wastewater from Imperial Oil's Kearl mine in northern Alberta in 2022. "I'm steadfast in my belief that a modern, efficient and effective regulator can provide the necessary safeguards for the environment while ensuring industry can deliver on the safe and innovative development of Alberta's resources," Morgan said in a statement. But in a joint statement, Environmental Defence, Keepers of the Water, and the Alberta Wilderness Association said putting a former oil executive in charge of the AER “undermines the credibility of Alberta’s regulatory body tasked with protecting our lands, waters and communities from the harms of fossil fuel extraction. The regulator can only be effective if it is independent from the industries it oversees.” CBC News

Edmonton-headquartered Stantec promoted Susan Reisbord, who had led the firm’s environmental services business for three years, to chief operating officer for North America. After studying geology and geochemistry, Reisbord gained more than 30 years’ experience in consulting engineering and the construction industry. She held leadership roles with MWH (now part of Stantec), Wellington Road Associates, GHD and Cardno (also now part of Stantec) and became an advisory board member of the Fédération Internationale Des Ingénieurs-Conseils Global Leadership Forum. Reisbord was appointed Stantec’s executive vice-president of environmental services in 2022. She is now succeeded in that role by Luke de Hayr, who also joined the firm when it acquired Cardno in 2021. Canadian Consulting Engineer

Montreal-based aviation training firm CAE Inc. appointed four new directors to its board of directors, including former Air Canada CEO Calin Rovinescu as chair of the board. The other three appointments are Peter Lee, Katherine A. Lehman and Louis Têtu. These changes, effective February 14, followed consultations with the company’s stakeholders that focused on the board’s ongoing review of its composition and a transition towards renewed board leadership. Lee will co-chair a search committee for a new CEO. The size of the board remains unchanged at 13 as the four appointments are being made in conjunction with the retirement of four directors: Alan N. MacGibbon, who has served as chair of the board since 2022; Margaret S. (Peg) Billson; François Olivier; and David G. Perkins. CAE

Former OMERS real estate executive Michael Turner and ex-CEO of Hut 8 Jaime Leverton are among three new board members, including Doug Mouton, at Colorado-based bitcoin miner Riot Platforms Inc. Riot said that collectively, the new directors possess experience directly overseeing the conversion of bitcoin mining assets for potential artificial intelligence/high-performance computing uses, managing data centre operations and maximizing the value of dynamic real estate properties similar to those owned and operated by Riot. Current directors Hannah Cho and Hubert Marleau will be retiring from the board. Riot Platforms

Virgina-based Mars appointed consumer packaged goods industry veteran David Jacobs as vice-president of marketing for Mars Food & Nutrition North America. Jacobs will report to Dave Dusangh, regional president of Mars Food & Nutrition North America. Jacobs brings extensive sales and marketing experience across multiple consumer brands and companies, including SC Johnson and Unilever. In his new role for Mars Food & Nutrition North America, he will lead strategies to drive penetration and accelerate growth across the rice and ready meal categories in the U.S. and Canada. Food in Canada

McMaster University unveiled the Mary Heersink School of Global Health and Social Medicine. Sonia Anand, associate vice-president of global health, will serve as the inaugural leader of the new school. Established using part of Mary and Marnix Heersink’s $32-million donation to McMaster, the new school will advance global health and social medicine research, education and humanitarian work. It will focus on populations at risk, human migration, planetary health, and food and health equity. The new school will introduce several new initiatives, including a humanitarian and service delivery program, a diploma in global surgery, a social medicine and entrepreneurship community program, and a global health fellowship program. McMaster University

Northwestern Polytechnic (NWP) in Grande Prairie, Alta. announced a 15-year partnership agreement with Spartan Controls to bolster training opportunities for the next generation of engineers. As part of this collaboration, NWP’s new $16-million training and education space will be named the Spartan Controls Northwestern Centre for Industrial Automation & Innovation. Set to open this fall, the new facility will feature an immersive learning environment with advanced technology and provide hands-on training with customized process equipment integration, including boilers, steam turbines, water treatment packages and more. Northwestern Polytechnic

Collège communautaire du Nouveau-Brunswick (CCNB) signed a partnership agreement with Polaris that will bring new technical training opportunities to college students. CCNB students will have access to approximately 50 hours of Polaris technical training across 80 courses. They will gain practical knowledge and develop their skills as they work with the motor vehicle company’s workshop manuals and diagnostic tools. Rémi Perron, CCNB instructor, said the partnership will ensure students are better prepared for the job market as they will graduate with industry-recognized training and hands-on experience with cutting-edge equipment. CCNB

Algoma University is introducing three new master’s programs at its Sault Ste Marie and Brampton campuses this fall: the Master of Global Business and Economy, Master of Science in Business Analytics, and Master of Science in Computer Science. This marks an expansion of AlgomaU’s overall graduate portfolio, as well as the Brampton campus’ first-ever graduate offerings. “These programs are designed to offer students flexible learning opportunities, hands-on experience, and direct engagement with cutting-edge research and industry collaborations,” said Dr. Donna Rogers, Algoma’s vice-president, academic and research. Algoma University

The Southern Alberta Institute of Technology (SAIT) in Calgary launched a Bachelor of Technology (BTech) degree program. The program is delivered in a 2+2 format: students complete a two-year IT diploma before engaging in another two years of studies specializing in either software development or cybersecurity to earn a BTech degree. The program involves hands-on learning, which includes an optional co-op work term to help students build relationships with employers while they study. The BTech is SAIT’s first degree program offered through the School for Advanced Digital Technology. SAIT

The University of Calgary’s (UCalgary) Faculty of Science launched a Science Communicator in Residence program that will teach scientists how to engage with diverse audiences. Dr. Mary Anne Moser is the inaugural science communicator in residence. Moser is the co-founder of Beakerhead, an annual science spectacle that has attracted attention around the globe, and she led the recent revitalization of TELUS Spark as its CEO. She was the founder of the Banff Science Communications Program, an early leader in audience-focused science communications. While the residency program is hosted through the Faculty of Science, webinars and other materials are open to anyone from the UCalgary community. UCalgary

St. Lawrence College initiated a round of mass layoffs in addition to suspending 55 programs next semester. Glenn Vollebregt, president of the college, said management and administrative positions have been reduced by about 42 percent, while support staff will be reduced by about 34 percent. The college will also reduce faculty positions. The Kingstonist and Kingston Whig-Standard reported that the layoffs are part of the larger restructuring taking place at the college, which includes the elimination of several departments and program suspensions that were announced earlier this year. Vollebregt said despite the drastic changes taking place locally and at colleges across the province, St. Lawrence College will not be leaving any of its current communities, including Kingston, Brockville and Cornwall. Kingston Whig-Standard

St. Clair College, which has campuses in Windsor, Chatham and other locations in Ontario, will be suspending 18 programs this fall and offering early incentive leaves for staff and faculty due to recent federal changes to the international student cap. The programs being suspended include the college’s power engineering, hospitality and event management programs. The affected programs typically have cohorts of between 20 and 25 students. As the college finalizes its budget, it will also be offering early incentive leaves for staff and faculty to create some capacity moving forward. CTV News

Red Deer Polytechnic (RDP) in Alberta is projecting an estimated $10-million deficit for its 2025/2026 budget, which will result in program suspensions and a reduction in staff. RDP issued a statement highlighting the reasons for this estimated deficit for the fiscal year ending June 30, 2026: Immigration, Refugees and Citizenship Canada impacts to international student enrolments, rising inflation and an anticipated zero per cent increase to base grant funding from the Government of Alberta. Stuart Cullum, RDP president, said the post-secondary system across Canada is "experiencing a significant impact" as a result of fiscal pressures, noting Red Deer Polytechnic is no different. The polytechnic is exploring opportunities to build partnerships and find alternative sources of revenue. Red Deer Advocate

The Université du Québec en Abitibi-Témiscamingue (UQAT) is reporting a $3-million deficit for the 2024-25 budget. UQAT rector Vincent Rousson stated that most of this deficit – approximately $2.5 million – stems from salary increases that were granted to public service employees by the Government of Québec. Rousson said while he agrees with the increases, the provincial government did not grant additional funding to the university to cover these fees. Radio-Canada reported that UQAT is assessing how to counterbalance the deficit over the next five years, including by limiting travel expenses and analyzing all contracts that are due to expire. TVA Abitibi-Témiscamingue

The College of New Caledonia (CNC) in Prince George is considering cutting several programs, according to My PG Now. These include the associate of arts – modern classics, English language, and community and school support programs, which have reportedly been recommended to the board for cancellation due to declining enrolment, small class sizes and budget issues. The recommendation to cancel the English language (ENLA) learning program has been met with criticism from instructors, students and community members who say that marginalized community members will have fewer learning opportunities. The Prince George Citizen reports that students from ENLA Level 4 also sent the CNC Student Union’s executive director a formal objection letter, which asserts that the college should conduct a full assessment of the impact the program’s cancellation would have on students. Prince George Citizen

The world's first quantum optical microscope is lighting up new paths for studying biological processes. Developed by a team of researchers from the National Research Council, University of Calgary, University of Ottawa and others, the microscope uses entangled photons to provide ultra-low intensity illumination. By harnessing the power of correlations between single photons, the technology speeds the process and reduces the risk of photo damage while delivering high-resolution images. Researchers peering deep into biological samples need blinding light to see beyond the surface. In traditional microscopy, the exhaustive process and the invasive high-intensity light can damage cells and reduce the quality of images produced. This calls for complex precautions, which could also limit the study of biological processes. With innovative quantum technology driving development of a new microscope, the sky is the limit. Now in the prototyping stage, the quantum optical microscope not only consistently delivers high-resolution images without harming cells but also does it more quickly under ultra-low light. "We're also building machine learning systems to make post-processing and image reconstruction faster," said project leader Dr. Shabir Barzanjeh, an associate professor at UCalgary's Department of Physics and Astronomy in the Faculty of Science.  The technology could have applications in biomedical imaging, clinical applications and materials science. Learn more about the work in an article by the researchers in Physical Review. UCalgary

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