A unique initiative in Quebec: Launch of an energy transition continuum to propel 100 innovative start-ups in 3 years
2 Degrés, Cycle Momentum, and the Vallée de la Transition Énergétique (VTE) are proud to announce the launch of an energy transition continuum, a groundbreaking and exclusive initiative in Quebec that directly addresses the challenges of the energy transition.
This continuum brings together the complementary expertise of three key players in the industry: 2 Degrés, a clean technology incubator; Cycle Momentum, a clean technology accelerator; and the Vallée de la Transition Énergétique, an innovation zone focused on the energy transition. It builds on the funding announced last year for the Clean Technology Consortium, led by 2 Degrés, Cycle Momentum, and IVÉO, by adding concrete, measurable, and high-impact advances.
Through a collaborative model, this strategic partnership aims to support the emergence of 100 innovative technology startups over a three-year period, via a comprehensive support chain from the lab to commercialization and investment. This integrated, results-driven, and structuring approach is made possible thanks to confirmed support from both the Quebec and Canadian governments for the partner organizations. Aligning with Canadian energy systems and national energy policy is essential to ensure the success and scalability of this initiative across the country.
By pooling their resources, the three organizations are helping to stimulate the creation of innovative startups, accelerate the commercialization of their solutions, and generate significant environmental and economic benefits for the entire province of Quebec. The green economy and the renewable energy transition play a central role in Quebec’s and Canada’s economic development, driving sustainable growth and job creation.
“Today, more than ever, we must unite our strengths and establish strategic partnerships to better tackle the challenges of the energy transition. By combining their expertise, these three key industry players are helping create an ecosystem conducive to innovation and the commercialization of clean technology solutions, such as batteries. This sector remains a priority for our government, and today’s announcement shows it is still growing strong.” – Christine Fréchette, Minister of Economy, Innovation and Energy, Minister responsible for Regional Economic Development, and Minister responsible for the Metropolis and the Montreal Region
This initiative directly supports emissions reduction and the clean energy transition, contributing to both local and global climate goals.
“The VTE is proud to join forces with 2 Degrés and Cycle Momentum for the launch of this high-potential Energy Transition Continuum. This initiative is built on an integrated collaboration model between entrepreneurial support, financing, and access to cutting-edge infrastructure. With this Continuum, we wanted to offer a structured path that supports energy transition entrepreneurship, fosters innovation from idea to market, and generates collective prosperity for Quebec.” – Alain Lemieux, Executive Director, Vallée de la Transition Énergétique
In summary, this continuum is a key step in advancing Quebec’s leadership in the renewable energy transition. The initiative recognizes the importance of energy storage capacity and the sustainable management of raw materials to support the deployment of low-emissions technologies and ensure a resilient energy system. Furthermore, Quebec’s proactive approach positions the province as a leader in the clean energy transition, with the potential to influence the broader geopolitical aspects of the global economy and shape international energy markets and trends.
Introduction to the Energy Transition: Definition and Importance
The energy transition marks a pivotal shift in how societies generate, distribute, and consume energy. At its core, it involves moving away from fossil fuels – such as coal, oil, and natural gas – toward renewable energy sources like wind energy, solar power, and hydroelectricity. This transformation is essential for reducing greenhouse gas emissions, improving energy efficiency, and combating the effects of climate change.
The importance of the energy transition cannot be overstated. According to the International Renewable Energy Agency (IRENA), accelerating the adoption of renewable energy sources is critical to reducing our reliance on fossil fuels and achieving global climate commitments. The current energy system, which is heavily dependent on fossil fuels, is responsible for the majority of greenhouse gas emissions driving global warming. By integrating renewable energy, energy storage, and distributed energy resources, we can create a more resilient and sustainable energy system that supports both environmental and economic goals.
Transitioning to renewable energy sources requires a comprehensive transformation across the entire energy system. This includes modernizing the power sector, electrifying transportation with electric vehicles, decarbonizing industrial processes, and improving energy efficiency in buildings. The deployment of new technologies, such as wind turbines, solar panels, and advanced energy storage solutions, plays a crucial role in enabling this shift. These innovations not only help reduce greenhouse gas emissions but also enhance grid reliability and support the integration of variable renewable energy into electricity systems.
The energy transition also presents significant opportunities for economic growth and technological innovation. The expansion of renewable energy industries is creating new jobs, fostering the development of cost-competitive clean energy solutions, and driving investment in sustainable infrastructure. Moreover, increasing energy access through renewable technologies can help address energy poverty and support inclusive economic development, particularly in regions with limited access to traditional energy sources.
However, the path to a successful energy transition is not without challenges. Achieving a low-carbon energy system will require substantial investment, coordinated policy action, and ongoing technological innovation. The International Energy Agency (IEA) estimates that more than $1 trillion in annual investment is needed to transform global energy systems and meet climate targets. Overcoming these challenges will demand collaboration among governments, industries, and civil society to ensure a smooth transition and maximize the benefits of renewable energy.
In summary, the energy transition is a critical step toward a sustainable future. By reducing greenhouse gas emissions, promoting energy efficiency, and integrating renewable energy sources, we can address the urgent challenges of climate change while unlocking new opportunities for economic growth and innovation. As the world moves toward a cleaner, more resilient energy system, initiatives like the one launched by 2 Degrés, Cycle Momentum, and the Vallée de la Transition Énergétique are essential for driving progress and ensuring a brighter, more sustainable future for all.
A Program to Accelerate Startup Transition from Research to Market and Reduce Greenhouse Gas Emissions
As the first component of the Clean Technology Consortium, jointly led by 2 Degrés, Cycle Momentum, and IVÉO, the Lab-to-Startup program aims to create companies based on research. Past trends in energy transitions have demonstrated that moving innovations from research to market is crucial for accelerating the shift to low-carbon and renewable energy systems.
This program identifies and validates promising research projects with environmental and economic impact potential and seeks to turn them into viable, successful businesses. By pairing researchers with experienced entrepreneurs, the program accelerates the transition from research to market. Improving energy density in battery technologies is a key focus area for startups in the program, as higher energy density can enhance electric vehicle performance and support the broader goals of energy transitions.
An Incubation and Acceleration Program Dedicated to Energy Transition and Energy Efficiency Startups
The incubation program led by 2 Degrés will support startups from the earliest stages of development: ideation, market validation, prototyping, and initial testing. With specialized, personalized support, access to sector experts, and a co-creation environment, young ventures will be positioned to build strong foundations. The program encourages ventures developing solutions for wind farms, solar farms, and onshore wind power.
“A partnership that gives a major boost to the rise of start-ups and the creation of a strong ecosystem focused on energy transition across Quebec. Fully aligned with our mission at 2 Degrés, this structuring collaboration underscores the importance of coming together to meet today’s challenges and opportunities. By joining forces, we are categorically rejecting the status quo and siloed approaches. Together, we are creating a unique continuum that allows more energy transition businesses to emerge, take root, grow, and transform Quebec.” – Alexandre Guindon, Executive Director and Founder, 2 Degrés
The ecosystem also supports collaboration and knowledge sharing among stakeholders. In particular, we encourage innovations that integrate wind and solar into the electricity grid and optimize the energy mix for Quebec.
An Acceleration Program to Scale Up Renewable Energy
The acceleration program led by Cycle Momentum will support companies ready to scale by fast-tracking their seed stage while providing tailored funding in collaboration with its partner funds.
“This partnership embodies our ambition to tailor our approach around themes closely linked to key Quebec industries. While the VTE focuses on hydrogen and the industrial decarbonization of heavy transport, the battery sector, and transportation electrification, we will focus on solutions capable of transforming Quebec’s energy future. Key technologies such as hydrogen production, carbon capture, and heat pumps are essential for driving the low carbon energy transition, enabling significant emissions reductions and supporting the shift to sustainable energy systems.” – Patrick Gagné, President and CEO, Cycle Momentum
About the Vallée de la Transition Énergétique
The Vallée de la Transition Énergétique (VTE) is an innovation zone dedicated to establishing a world-class collaborative research and innovation ecosystem in energy sectors such as batteries, transport electrification, hydrogen, and the decarbonization of industrial-port activities and heavy transport. In addition to these focus areas, the region is actively working to reduce reliance on coal power plants, while the role of nuclear energy and nuclear power is evolving as part of the broader decarbonization strategy. This development brings together entrepreneurs, industries, municipalities, and the academic world in attractive and sustainable living environments in Trois-Rivières, Bécancour, and Shawinigan.
About 2 Degrés
2 Degrés is an impact incubator dedicated to start-ups and innovation projects in clean technologies in Quebec. Through its programs, it supports and propels pre-start-up clean technology ventures. With a committed team, a network of engaged partners, and over 75 actively involved collaborators, 2 Degrés has supported over 65 innovative companies with strong growth and impact potential since 2021. These ventures contribute to reducing energy use and energy consumption, while increasing the share of clean energy generated in Quebec.
About Cycle Momentum
Cycle Momentum is an international acceleration and innovation platform that brings together entrepreneurs, corporations, investors, and innovators. Our mission is to identify and support the development of cutting-edge technologies to fight the climate crisis. We support start-ups working on renewable sources and renewable energies, including wind power, to help transform the global energy mix. As a member of the Cycle Capital platform, Cycle Momentum provides entrepreneurs with acceleration programs to support their growth. We also offer investment and collaboration opportunities through our vast network of investors and industrial partners. We are committed to achieving emissions reductions, supporting the current energy transition away from fossil fuel, and contributing to climate goals such as limiting warming to pre industrial levels.
