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June, 2009

 


Green technologies demonstration program

Program description

The Agence de l’efficacité énergétique (AEE) Programme de démonstration des technologies vertes visant la réduction des émissions de gaz à effet de serre (PACC). The purpose of the program is to finance demonstration projects of innovative technologies and procedures that have strong potential for reducing greenhouse gas emissions in Québec. It also pursues the objectives of two different green development strategies, the Stratégie de développement de l'industrie québécoise de l'environnement et des technologies vertes and the Stratégie énergétique du Québec 2006-2015 – L’énergie pour construire le Québec de demain.

Program objectives

The program focuses on reducing greenhouse gas emissions by:

  • supporting the development of technologies that limit or reduce greenhouse gas emissions
  • improving energy efficiency so as to reduce consumption of fossil fuels
  • replacing fuels and fossil fuels with renewable energy
  • contributing to the development of Québec industry and job creation in the green technology sector.

Eligibility

Any firm established in Québec that has developed or adapted an innovative technology or procedure that leads to reductions in greenhouse gas emissions, or any firm that has the rights to technology developed by a Québec institution.

Eligible projects

Eligible projects must focus on demonstrations of innovative, emerging technologies developed in Québec, or adaptations of existing technologies. The aim of these projects must be to reduce greenhouse gas emissions with a focus on sustainable development. The technologies in question must have strong market potential. They must be carried out in Québec within a 36-month period.

For all projects, greenhouse gas emissions must be quantified before and after the demonstration project in accordance with the ISO-14064 standard, part 2. Verification of reduced emissions of greenhouse gases by a third party after completion of the demonstration project in accordance with the ISO-14064 standard, part 3 is optional. In certain cases, however, the AEE could insist on such verification after a project has been analyzed and accepted.

However, in the quebecer context where the electrical energy results largely from hydroelectric power stations which generate only very few GES, it turns out that the projects energy production replacing the electricity have not enough chance to be financially supported by the program, unless the replacement aims specifically at the electricity produced from hydrocarbons.

In what concerned the production of biofuels and solid and gaseous biofuels from food-processing biomasses, only the projects aiming at the use of residual food-processing biomasses or dedicated, not food-producing cultures, cultivated on surfaces usually not used in food purposes, will be eligible to the program.

Eligible expenses

Eligible expenses must be directly linked to the demonstration project. Such expenditures include:

  • the salaries of employees hired to work on the project as well as the mandatory employer contributions
  • the cost of a patent application and acquisition, and the cost of a manufacturing licence or know-how licence
  • the fees paid to consultants working on the project
  • the cost of materials and supplies used in the project
  • depending on the nature of the work involved, all reasonable administrative and travel expenses associated directly to the project
  • fees paid to professionals and for project evaluation and verification services (greenhouse gas emissions and energy performance), as well as financial audits of the project
  • any depreciation expenses for the capital financing period that have long-lasting commercial value for an organization after the financing period, in accordance with generally accepted accounting principles.

Project examples

For examples of projects, consult the table of eligible domains in the program brochure. (PDF | 2,6 Mo)

Financial aid

Financial assistance can reach $3M per project. In the case of eligible expenses of $500,000 or less, financial support takes on the form of non-refundable aid. Financial aid may cover up to 50% of eligible expenses. In the case of eligible expenses of more than $500,000, financial aid can be either refundable or non-refundable and will cover no more than 40% of eligible expenses.

The accumulation of financial aid from various federal and provincial government organizations or ministries (including financial assistance from the AEE for the demonstration project) may not exceed 75% of the eligible expenses for the demonstration project. A demonstration project may receive financial assistance from only one of the two following AEE programs: the green technology demonstration program (Programme de démonstration des technologies vertes visant la réduction des émissions de GES) and the program to promote energy efficiency (PPEE).

Project evaluation criteria

Each project will be evaluated using the following criteria :

  • potential for reducing greenhouse gas emissions in Québec (qualifying criterion)
  • quality of project in terms of technology used
  • energy impact of the project
  • social and economic impacts
  • market potential
  • likelihood of successful completion of project.

Project authorization

Once the application has been received, the usual response time is less than three months. Upon presentation of the recommendations made by the committee composed of representatives from the AEE, the ministère du Développement durable, de l’Environnement et des Parcs (MDDEP), the ministère du Développement économique, de l’Innovation et de l’Exportation (MDEIE) and the ministère des Ressources naturelles et de la Faune (MRNF), projects are submitted and, where appropriate, authorized by the AEE president and general manager.

Documents and forms

To apply, fill out the financial assistance application form (XLS | 544 ko, in French) and send it, along with any other relevant information that will be of use in evaluating the application, to the address below. Send a hard copy as well as an electronic copy (CD or DVD).

Agence de l’efficacité énergétique
Direction générale des secteurs de l'innovation technologique, du transport et du développement de l'industrie
5700, 4e Avenue Ouest, RC
Québec (Québec) G1H 6R1

e-mail: aee@aee.gouv.qc.ca
Fax: 418 643-5828

Take that important first step. Contact us!

For more information on this program, contact us by phone at 1 877 727-6655 or by e-mail at aee@aee.gouv.qc.ca.

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