Kanin Energy raises $138 million for waste heat to power development

By September 21, 2026
An energy plant set against a partially cloudy sky
Calgary- and Houston-based cleantech company received funding from S2G Investments and Canada Growth Fund.

Calgary cleantech company Kanin Energy has secured significant capital for its “energy-as-a-service” (EaaS) business.

The news: Kanin announced a $138-million CAD new equity financing round on Sept. 16. The round was led by Chicago’s S2G Investments and Canada Growth Fund (CGF), both of which supplied $50 million USD (around $69 million CAD). Capital will support the development of Kanin’s waste-heat-to-power (WHP) projects in both the US and Canada.

From the source: “Rising power prices, grid congestion, and reliability constraints are pushing industrial companies to rethink how they source power. Waste heat has largely been an underused solution,” Marisa Sweeney, a principal at S2G Investments, said in a statement on the firm’s investment. “We view this as a category with real staying power.” 

The context: Kanin operates out of both Calgary and Houston, with a focus on decarbonizing industrial waste heat through WHP projects that capture high-temperature exhaust and convert it to power without creating additional emissions. With several projects in development south of the border, Kanin is operating on an “energy-as-a-service” (EaaS) business model, where customers pay for energy services rather than the infrastructure itself. Kanin says investment from S2G and the Canada Growth Fund represents a significant milestone, as the company looks to scale its EaaS business model and expand its commercial pipeline. 

Final thought: A beneficiary of several Canadian accelerator programs, including Plug and Play Alberta, MaRS, Canadian Tech Accelerator, and Foresight Canada, Kanin has leveraged the support it has received from accelerators and prior investment to quickly develop its footprint in the US market. Still, recent gains have come at a price. In an exclusive with Axios, CEO and founder Janice Tran said that, under the conditions of the raise, the company had ceded control of its board to investors to get the deal over the finish line. Tran cited increased difficulty for non-AI startups to access funds and the impacts of US-Canada tariff policies as reasons for the move.

BetaKit’s Prairies reporting is funded in part by YEGAF, a not-for-profit dedicated to amplifying business stories in Alberta.

Feature image courtesy Kanin Energy.

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