Is Your CleanTech Project Eligible for the TargetGHG Collaborative Technology Development Program

How to Qualify for TargetGHG Collaborative Technology Development Program Research Grants

The TargetGHG Collaborative Technology Development Program is a $45 million research and development fund aimed at supporting clean technology (cleantech) commercialization partnerships. Innovations created through the collaboration should specifically seek to reduce the greenhouse gasses released by Canada’s heaviest emitters.

Ontario technology developers who enter a partnership with at least one other member may be eligible for reimbursement of up to 50-67% project expenses. Research partners may include other for-profit businesses, heavy industrial emitters, and academic research institutions.

Eligible businesses must apply for the TargetGHG Collaborative Technology Development Program by March 16, 2017. This could be the final chance to apply for funding, as there are no future intake dates currently available. Businesses should consider their eligibility and begin the application process as soon as possible.

Businesses Eligible for TargetGHG Technology Research Grants

TargetGHG technology development grants may be awarded to Ontario-based small and mid-sized enterprises (SMEs) who demonstrate the ability to develop GHG reduction technologies. This includes businesses who:

  • Are incorporated and have operations within Canada;
  • Have manufacturing or research & development operations in Ontario;
  • Maintain fewer than 500 full-time employees; and
  • Earn less than $50 million in annual gross revenue.

TargetGHG Collaboration Requirements

Furthermore, SMEs must form a collaborative research and development consortium with at least one other:

  • SME;
  • Large industrial emitter;
  • Large enterprise; or
  • Academic institution.

Consortium partners are expected to provide in-kind contributions to the project in addition to the government funding awarded. An effective way to reduce project costs is to add additional consortium partners. By sharing project workload, SMEs can accelerate the project and improve return-on-investment (ROI).

Types of Technologies Eligible for TargetGHG Funding

There are three types of technologies that the TargetGHG Collaborative Technology Development Program is looking for consortiums to build and test. These include:

  1. Industrial Point Source Technology: Innovations that have a substantial impact on the GHG emissions of manufacturers and other production-oriented businesses.
  2. Value Chain Technology: CleanTech products or processes that transform post-production, logistics, and waste disposal systems to prevent GHG emissions from reaching the atmosphere.
  3. Carbon Capture & Storage Technology: Technologies that can collect, contain, and recycle greenhouse gas emissions from the atmosphere.

Technology Readiness Levels (TRL)

All technologies accepted into the program should be pre-commercial with a Technology Readiness Level (TRL) level ranging from 4-7.

Please ensure that, at time of application, your technology can be classified in one of the following levels:

  • TRL Level 4: Early-Stage Prototype Development
  • TRL Level 5: Late-Stage Prototype Development
  • TRL Level 6: Pilot Prototype Testing
  • TRL Level 7: Commercial-Scale Demonstration

Project Expenses Eligible for TargetGHG Research Funding

The TargetGHG program models its funding contributions based on whether applicants have more or less than 10 employees.

For a more detailed breakdown on how each funding model works, please read Mentor Works’ TargetGHG program overview blog.

Eligible Expenses

  • Materials and supplies;
  • Direct salaries at a base salary rate;
  • Employee benefits to a limit of 20% base salary;
  • Third-party verification of environmental benefits;
  • Administrative and overhead fees (administrative salaries, office supplies, IT expenses, and pro-rated insurance and utilities);
  • Limited support for attending domestic or international conferences;
  • Limited support for travel and accommodation;
  • Depreciation on capital assets during the project;

Ineligible Expenses

  • Product marketing/advertising;
  • Intellectual Property (IP) protection;
  • Advertising and/or travel costs associated with hiring new employees;
  • Administrative and overhead fees (Legal, consulting, financing, losses on investments, and opportunity costs);
  • Purchase of land; and
  • Group membership or tuition fees.

TargetGHG Upcoming Round of Applications

The TargetGHG Collaborative Technology Development Program will accept Expressions of Interest (EOIs) for the second a potentially final time on March 16, 2017.

SMEs must have the commitment of consortium partners and develop an EOI detailing the proposed project and its implications for national GHG emissions. This is a lengthy process; businesses should begin preparing for this final intake immediately.

To check if your business is eligible for the TargetGHG program, contact Mentor Works.

How Projects Will Be Evaluated

There are seven criteria used to determine the quality of project EOIs. This includes:

  1. Technology and Innovation: The technology’s scientific basis will be evaluated to determine how it will lead to GHG reductions where current technologies cannot.
  2. Consortium Strength: Project consortiums are evaluated based on size and overall strength. Consortium partners should all add value and resources to the project.
  3. GHG Reduction Potential: How technologies would directly reduce GHG emissions per unit of output, and its scalability to be used on a national or international level.
  4. Market and Value Proposition: Plans to commercialize the technology once fully developed and tested. How feasible or competitive would it be in the market?
  5. Management and Team Capacity: How well suited and committed the consortium is to carrying out the proposed work. This includes evaluation of managerial and technical capacity.
  6. Budget and Cost Sharing: The budget should be an accurate, well developed representation of the proposed project. In addition, applicants must show where/how project financing will be obtained to pay for expenses not offset through the program.
  7. Project Scope and Plan: How well developed, achievable, and impactful the scope of work and work plan are.

Learn More About the TargetGHG Collaborative Technology Development Program

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