The Province of Ontario is positioning itself to be a leader in the development of clean technologies, commonly referred to as “cleantech”. Funds generated from the Ontario provincial cap and trade program will be reinvested into ‘green economy’ businesses, or those exploring new ways to reduce carbon emissions. This is a contributing factor in the creation of the new $45 million SDTC TargetGHG Collaborative Technology Development Program, to accelerate the growth of Ontario’s environmental innovators.
The TargetGHG program provides Ontario government grants for small and medium-sized enterprises (SMEs) to develop a commercially-ready product that reduces greenhouse gas (GHG) emissions. SMEs must form a research and development consortium who collaborates and produces a technology that has a strong potential to result in significant, verifiable and sustainable GHG reductions in Ontario, Canada and internationally.
Most Canadian businesses may receive up to 50% of project costs through the TargetGHG program, however small businesses with fewer than 10 employees may be able to receive up to 67% of project costs. Projects may last up to three years, at which point in time the consortium must have a commercially-viable technology.
SDTC TargetGHG Collaborative Technology Development Program Streams
There are 3 streams of funding, or general project types that will be considered for the TargetGHG program. Ontario small business grants will be awarded for the following activities:
1. Industrial Point Source Technologies
Industrial production sites are a common source of GHG emissions. Production-oriented businesses, such as manufacturers, have an opportunity to develop energy-efficient technologies that save time, money, and the environment.
Projects considered under the Industrial Point Source stream largely focus on production technologies, such as developing innovations that:
- Do not require combustion;
- Increase productivity while also reducing energy demand; and
- Reduce chemical consumption during the production process.
2. Value Chain Technologies
To reduce greenhouse gas emissions on a large scale, Ontario small businesses must look for ways to reduce carbon emissions through their entire industrial value chain. What happens to by-products and waste created from the production process? How efficient is shipping and transportation? These are all issues that must be addressed.
Projects considered under the Value Chain stream largely focus on post-production, logistics, and disposal technologies, such as developing systems that:
- Allow for efficient transportation and materials handling systems;
- Enable more efficient disposal of production by-products; and
- Capture and better utilize waste heat, steam, and usable by-products.
3. Carbon Capture & Storage Technologies
Once carbon emissions have reached the atmosphere, they begin causing havoc on our environment. One of the newest, most promising areas in the fight against climate change is the capture and utilization of carbon, however innovative technologies are needed to collect, contain, and process the gas.
Projects considered under the Carbon Capture & Storage stream will focus on improved collection and utilization on carbon dioxide, including the development of:
- Cost-effective ways to store carbon in long-lived products such as cement and other building materials; and
- Catalytic or biological processes that transform carbon dioxide gas into valuable commodities or materials.
Technology Readiness Levels
All projects must have a Technology Readiness Level (TRL) level ranging from 4-7 in order to qualify for the TargetGHG Collaborative Technology Development Program.
Please ensure your innovation is within the following development stages:
- TRL Level 4: Early-Stage Prototype Development
- TRL Level 5: Late-Stage Prototype Development
- TRL Level 6: Field Pilot
- TRL Level 7: Commercial Scale Demonstration
Businesses Eligible for the Sustainable Development Technology Canada TargetGHG Collaborative Technology Development Program
Ontario cleantech grants will only be awarded to small and mid-sized businesses who initiate a collaboration with other research partners. Strong program applications require the lead applicant to:
- Maintain fewer than 500 full-time employees;
- Earn less than $50 million in annual gross revenue;
- Be incorporated and have operations within Canada; and
- Have manufacturing or research & development operations in Ontario.
How Much Could You Receive in SDTC TargetGHG Cleantech Research Grants?
There are 2 models of funding that will determine how much funding an applicant may receive for their successful technology development project. They include:
Model 1: SMEs with 10 or More Employees
Companies with 10 or more employees may receive up to a maximum 50% of eligible project expenses. This amount includes a maximum $1M contribution from the Ontario Centres of Excellence (OCE) and up to 33% of eligible cost coverage from Sustainable Development Technology Canada (SDTC).
| Source of Funds | Maximum Funding Contribution |
| OCE (Max $1M) | $1,000,000 |
| SDTC (Up to 33%) | $3,000,000 |
| Lead Applicant Cash | $2,250,000 |
| Consortium Partners | $2,750,000 |
| Total Project | $9,000,000 |
Model 2: Small Businesses with Fewer than 10 Employees
Organizations with less than 10 employees may receive up to a maximum 67% of eligible project expenses. This amount includes a maximum $1M contribution from the Ontario Centres of Excellence (OCE) and up to 45% of eligible cost coverage from Sustainable Development Technology Canada (SDTC).
| Source of Funds | Maximum Funding Contribution |
| OCE (Max $1M) | $1,000,000 |
| SDTC (Up to 45%) | $1,000,000 |
| Lead Applicant Cash | $750,000 |
| Consortium Partners | $250,000 |
| Total Project | $3,000,000 |
Please Note: SDTC funding contributions may be capped to stay under the maximum thresholds of 50% (>10 employees) or 67% (<10 employees).
How to Apply for the SDTC TargetGHG Collaborative Technology Development Program
Applicants must submit an Expression of Interest (EOI) for the TargetGHG program in order to be considered for funding. Applications may be submitted at any time, however EOIs must be received by March 16, 2017 at the latest. There is an initial round of EOIs due on November 16, 2016.
EOIs may be submitted online, and upon review by the funding organizations, high-quality applicants will be selected to make a presentation identifying the significance of their technology. After all presentations have been made, the funding organizations will choose viable projects and request the completion of a full funding application.
Final applications will be reviewed in September 2017. Successful applicants will receive a funding notification shortly afterwards, at which point they can begin incurring expenses laid out in their project proposal.
Apply for SDTC TargetGHG Cleantech Research Grants
If your organization is conceptualizing a project that may be a good fit for the TargetGHG Collaborative Technology Development Program, please contact Mentor Works.
Our team of Government Funding Planners can confirm your eligibility for the program and discuss ways to accelerate your document preparation, application submission, and reporting. Together, we can discover ways to extend your cash flow and increase project ROI.