Are you a manufacturer located in Ontario and interested in increasing your productivity? Perhaps you have been considering upgrading process and production equipment to increase your facility’s efficiency, but the internal rate of return isn’t as appealing as you would like it to be. This is when you should consider CME SMART Green Funding.
Did You Know?
Did you know that many projects that improve productivity and increase efficiency also reduce greenhouse gas (GHG) emissions? As you may have already heard, by 2020 Canada plans to reduce its GHG emissions to fifteen percent below its 2005 emission levels. To help achieve this emission reduction goal, the Canadian Manufacturing Exporters (CME) in partnership with the Government of Ontario, has launched a new and comprehensive $25 million fund aimed at assisting eligible small- and medium-sized enterprise (SME) manufacturers to reduce their GHG emissions and improve their overall energy efficiency.
The strategic goal of the CME SMART Green Funding is to improve Ontario’s competitiveness in manufacturing while contribute to its 2020 GHG emissions targets. The fund intends to meet this emissions reduction objective by supporting Ontario’s Manufacturers to invest in technology and process improvements that reduce GHG emissions, and upgrade process and production equipment that lead to greater productivity.
GHG Funding covers up to 50% of eligible project costs in non-repayable grants to a maximum of $500,000. This makes potential projects for manufacturers’ not only feasible, but also highly attractive from an ROI perspective.
The CME SMART Green Funding will pay 50% of project costs ($0.50 on the dollar) for up to $500K, but it also pays for an audit to determine any eligible projects. For example, a client wants to do a project to reduce its GHG emissions and take advantage of the funding, but it does not know where to start from, or which project would be the best. Here we can apply for funding to pay for an audit of the facility to determine the best project to undertake. Armed with this information and analysis, the client can then determine which project is best for them.
Do you have multiple facilities that you would like to be assessed? Would you like to implement process improvement for energy efficient projects? This program has you covered too; it provides assessment and non-repayable grants for up to five facilities.
The question is if you have eligibility for these funds. Well, there are some applicant criteria for eligibility. You must be a manufacturer located in Ontario with a minimum of 10 full time employees who can prove a financially stable operating history. Your facility’s annual greenhouse gas emissions must be under 25,000 tonnes per year with no prior participation in Ontario’s Cap & Trade program. Moreover, potential projects cannot have started or commissioned to start. Equipment and materials intended for the project cannot be ordered or delivered prior to project approval.
What kind of projects qualify for the non-repayable grant funding under the CME SMART Green Funding? Projects are eligible if they result in GHG emissions avoidance, and intensity reductions through upgrades to process and production equipment, increase energy efficiency, and lead to productivity improvements. More specifically, the following are some example projects that we know are eligible under the funding program:
- Boiler Right Sizing and Load Management
- Advanced Boiler Controls
- High Efficiency Burners
- Feedwater Economizers
- Combustion Air Preheat
- Energy Efficient Motors
- Blowdown Heat Recovery
- Direct Contact Water Heaters
- Condensate Return
- Condensing Economizers
- Refrigeration Heat Recovery
- Compressed Air Upgrades and Heat Recovery
- Exhaust Gas Heat Recovery
- Ventilation Optimization and Heat Recovery
- Condensing Boilers
- Biogas Boilers
- Direct Contact Water Heaters
- High Efficiency Heating Units
- Solar Installation
What is considered an eligible project cost? Eligible project costs are those associated with improvements that include the installation of new process and/or production equipment. All expenses must be deemed reasonable and directly related to the project’s execution. These costs may include, but are not limited to: Plant equipment purchases, including software and equipment technologies that support manufacturing processes; Shipping and duty fees; Installation and commissioning of new equipment; Consulting fees directly related to and necessary for the project implementation; and post-implementation verification reporting. Although there are guidelines for eligible project costs, these costs should be clarified with the program ahead of application submission to ensure all parties’ expectations are clear.
How Can You Maximizes Your Eligibility?
We understand that most SME manufactures are already swamped with the daily demands of running a business. They have already allocated their in-house resources for their most efficient use. We are able to assist you in applying for and securing funds without the need for you to reallocate your existing resources. We ensure your application meets program requirements prior to submission by assisting you throughout the project verification process.
Contact us to find out how we can work together to improve your competitiveness and ensure your facility meets its full potential: