In recent years, Canadian manufacturing businesses have received increased pressures from society, customers, and government regulations to reduce their greenhouse gas (GHG) emissions and become more sustainable. Doing so can have drastic and immediate benefits on each business’ operational processes, costing, productivity, and the environment.
However, manufacturers often struggle for a feasible return on investment related to greenhouse gas reduction projects. As programs like Ontario’s Cap and Trade Program tax greenhouse gas emitters and reward GHG reductions, Ontario manufacturers are looking for other resources to reduce the price of entry into a more sustainable business model.
Fortunately, the Canadian Manufacturers & Exporters (CME) association, in partnership with the Province of Ontario, has created the CME SMART Green Program to provide up to 50% in Ontario government grants to approximately 110 Ontario-based manufacturers assessing and implementing GHG reduction projects. For those unaware of the program’s focus and objectives, please see Mentor Works’ CME SMART Green Program snapshot.
Businesses Eligible for the CME SMART Green Fund
CME has ensured that the CME Green SMART program is flexible in its eligibility to ensure that most Ontario manufacturers interested in investing in GHG reductions can do so at a lower cost burden. In order to be eligible to apply, Ontario manufacturers must ensure that they are:
- Physically manufacturing in Ontario with a minimum of 10 employees (priority will be given to “small and medium-sized enterprises and industry”);
- Not participating in the Ontario Cap and Trade Program;
- Emitting less than 25,000 tonnes of GHG annually; and
- Applying for 1-5 facilities, where up to 50% of eligible expenses are covered up to $500,000 per facility or $1,500,000 for up to five facilities per application;
Note: Trade exposed industries, including large and energy-intensive sectors are excluded from this Ontario government funding initiative.
Projects Eligible for CME Green Fund Grants
In order for a project to be eligible for CME SMART Green funding, applicants must ensure that a technical assessment form is completed that includes a baseline of current (pre-project) GHG emissions and that the project will directly reduce GHG emissions on a “per-production-unit” basis.
CME offers guidance on selecting a Qualified Technical Service Provider (QTSP) on their website to ensure that the assessment meets CME’s standards. Successful projects must prove that their investment will improve productivity and create a cleaner manufacturing process. For manufacturing consultants who wish to become a QTSP, Mentor Works also has written an article that helps explain the process of applying to become a CME SMART Green QTSP.
As with CME’s other program, the CME SMART Advanced Technologies for Global Growth initiative, both assessment and implementation projects will be considered for funding.
- Assessment projects will focus on recruiting a third party GHG reduction expert to uncover emission reduction opportunities within manufacturing facilities.
- Implementation projects focus more on the equipment and process integration costs.
Applicants can apply for funding for both the assessment and implementation of their GHG reduction project with an as of up to 50% of eligible costs to a maximum of $500,000 per facility up to five facilities or $1,500,000, whichever is less.
Eligible Project Examples:
Below are examples of projects that may qualify for the CME SMART Green program. Please note that completing one of the below projects does not automatically qualify manufacturers for the fund; projects are considered on a case-by-case basis and must result in clean productivity improvements.
- Boiler Right Sizing and Load Management
- Advanced Boiler Controls
- High Efficiency Burners
- Feedwater Economizers
- Boiler Combustion Air Preheat
- Blowdown Heat Recovery
- Automated Blowdown Control
- Condensate Return
- Steam Trap Survey and Repair
- Minimize Deaerator Vent Losses
- Steam System Insulation
- Boiler Tune Up
- Reduced Furnace Openings (Air & Chain Curtains)
- Exhaust Gas Heat Recovery
- Oven/Kiln/Dryer/Furnace Insulation
- Advanced Heating and Process Controls
- Optimize Combustion Air Compressor Heat Recovery
- Ventilation Optimization
- Ventilation Heat Recovery
- Automated Temperature Control
- Destratification Fans
- Warehouse Loading Dock Seals
- Minimize Door Openings
- Process Integration and PINCH Analysis
- Energy Management
- Reduce Boiler Steam Pressure
- Condensing Boiler
- Radiant Heaters
- Condensing Economizers
- Direct Contact Water Heaters
- Burn Digester Gas in Boilers
- High-efficiency Ovens & Dryers
- High-efficiency Furnaces
- Regenerative Thermal Oxidizers
- Process Heat Recovery
- Process Improvements (i.e. changing cleaning chemicals, set points, exhaust, moisture control, etc.)
- Steam Leak Repairs
- Improved Building Envelope
- High Efficiency Heating Units
- Gas Turbine Optimization
- Steam Turbine Optimization
When to Apply for CME Green SMART Funding
CME’s energy-efficient manufacturing grants program is now accepting applications on a continuous basis. Please note that applications will be scored heavily based on GHG reduction per-production-unit and a 12-month post-implementation verification will be required from approved projects that demonstrates the proposed GHG reduction.
Manufacturers should apply for the program soon since applications are reviewed on a first-received first-processed basis. To ensure your application is processed promptly, begin solidifying project budgets, timelines, and GHG reduction metrics now.
Successful applicants are invited to sign a CME SMART Green Contribution Agreement; only expenses incurred after signing the Agreement can receive reimbursement. Companies have up to one year from signing their Contribution Agreement to finish the project, and all projects must be completed by March 31, 2018.