SCAP Ontario Agri-Food Energy Savings Program

The Canadian government is partnering with the Government of Ontario to invest up to $10 million through the Sustainable Canadian Agricultural Partnership (SCAP) to support Ontario’s food processing businesses in increasing their energy efficiency and lowering costs.

SCAP is a joint five-year (2023-2028) $3.5 billion investment by federal, provincial, and territorial governments to improve competitiveness, innovation, and resiliency of the country’s agriculture sector. With funding through initiatives such as the new Agri-Food Energy Savings Program, the SCAP will supply up to $1.77 billion in Ontario’s agri-food industry over the next five years.

“Ontario’s food processing sector is an essential component of Ontario’s food supply chain, and the Agri-Food Energy Cost Savings Initiative will reduce costs and improve efficiencies, enabling them to grow and succeed. This initiative builds on our government’s Grow Ontario Strategy to support the growth and expansion of the agri-food industry, while ensuring Ontarians can continue to enjoy the good food that is grown and produced here at home.”
– Lisa Thompson, Ontario Minister of Agriculture, Food and Rural Affairs.

Funding Snapshot: Agri-Food Energy Savings Program

The SCAP Agri-Food Energy Cost Savings Program is a new funding program that aims to help Ontario’s food processors lower costs and become more competitive and sustainable through projects that reduce emissions via new or adapted technology, equipment, and facility improvements.

Funding Amount

Via the SCAP Agri-Food Energy Cost Savings Program, applicants can receive:

• Up to 20% of eligible project costs to a maximum of $300,000 per eligible business.

Eligible Applicants

To qualify for this program, applicants must:

• Be an agri-food processor; and
• Have project activities at an Ontario facility; and
• Follow environmental, labour, and tax laws.

Project Eligibility

Eligible projects can include but are not limited to:

• Purchase or modification of equipment and technology that improves energy efficiency;
• Purchase or modification of water use equipment and technology that improves energy efficiency;
• Purchase of energy monitoring controls and equipment; and
• Building envelope energy efficiency improvements including renewable energy, lighting, ventilation, heating, refrigeration, water heating and cooling.

Program Timeline

Eligible Ontario businesses can apply for funding starting on April 27, 2023. The application deadline is June 5th, 2023.

Please note that all eligible costs must be incurred after approval and before March 31, 2025.

Ontario Business Funding for Agriculture Projects

Along with this new SCAP program for Ontario, there is also the newly announced Grow Ontario Market (GOM) program which offers applicants up to 50% funding to a maximum of $60,000 for producers and food and beverage processors, or up to $125,000 for organizations.

“Our government is making substantial investments to help producers and processors reduce their energy consumption, which allows for economic and environmental advantages. These projects will contribute to making the food processing sector of Ontario a more innovative and sustainable sector.”
– Marie-Claude Bibeau, Federal Minister of Agriculture and Agri-Food.

As more agri-food funding programs are released, learn how your business could utilize grants and loans in alignment with your strategic goals by downloading our free Canadian Agri-Business Growth Guide white paper resource.