Canada

CA-5:Research, Development and Demonstration (R,D&D) programs

Policy Description

Natural Resources Canada (NRCan) provides funding for the research, development and demonstration (R,D&D) of new and emerging clean energy science and technology (S&T) and provides several platforms for industry to receive technical and financial support.  

Description

Natural Resources Canada (NRCan) provides funding for the research, development and demonstration (R,D&D) of new and emerging clean energy science and technology (S&T) and provides several platforms for industry to receive technical and financial support [1], [2].   The Office of Energy Research and Development (OERD) manages the Program of Energy Research and Development (PERD), which is a federal, interdepartmental program that provides funding to federal departments and agencies to support R&D in the area of sustainable energy.  The PERD program issues calls for proposals to federal departments and agencies, which specify areas of R,D&D focus and criteria for selection.  The participating departments and agencies often collaborate with industry through various consortia and alliances, individuals and universities.  

The OERD has also managed other R,D&D programs under which industry has (had) the opportunity to submit proposals for cost-shared funding.  One of the unique ways in which industry has been able to access these programs has been through a “Request for Letters of Expression of Interest (LOIs)”. The LOI is designed to elicit an outline of what a complete project would be, with preliminary cost estimates and timeline. This approach enables proponents the time to develop collaborations and consortia and to build upon their initial project idea with those collaborators, before committing to preparing a full project proposal.  These programs include:

  • The ecoENERGY Innovation Initiative which consists of two separate R,D&D funding streams focused on energy efficiency and clean electricity/renewable energy.   The funding for this initiative has been fully allocated.  One of the key funded projects will capture CO2 from two sources: a large fertilizer plant, and an oil sands upgrading operation (awaiting construction) in order to demonstrate the feasibility of a single network to collect CO2 from a large number of industrial emitters.
  • The Clean Energy Fund which has focused on investing in large-scale carbon capture and storage demonstration projects and smaller-scale demonstration projects of renewable and alternative energy technologies.  There is no current call for proposals (as of August 2013) and NRCan does not expect that there will be any further calls.  To date, over $900 million has been allocated to support the scaling of carbon capture and storage demonstration projects.
  • Within NRCan, CanmetENERGY works with industry to co-manage and share the costs of development and commercialization of a range of technologies, including process integration, learning-based expert systems, combustion systems and controls, manufacturing processes, and environmentally friendly and energy-efficient processes for energy intensive industries.  CanmetENERGY offers the development and testing of semi-pilot-scale plants, pilot plants, prototypes and full-scale field trials with emphasis on evaluating the operating performance, energy efficiency and environmental impacts and emerging concepts in chemical and energy conversion, including hydrogen production from hydrocarbon and renewable sources. CanmetENERGY disseminates technical information to encourage adoption of these techniques and practices in targeted energy intensive sectors of Canadian industry.  Functionally, CanmetENERGY expertise for industry focuses on:
  • Industrial Energy Systems (targeted approach): through R&D, CANMET experts help to identify priority technologies that can reduce and/or recover energy loss in Industrial Energy Systems, including combustion, process heating, combined heat and power, compressed air, motors, pumps and fans (*1) and
  • Industrial Process Optimization (global approach): through R&D, CANMET experts apply a global approach focused on solutions for energy intensive processes as a whole. This method can be used to reduce energy consumption through increased heat recovery, maintaining energy performance over time or the optimal integration of new technologies.

CanmetENERGY actively seeks out partners interested in collaborating on research for both the targeted and global approaches.

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Policy Categorisation

Policy Instrument Type: Economic, Incentives & Subsidies, Information & Outreach

Position in the Pyramid

About Us

Participation: Voluntary

Period

Start Date: 2001

Agencies Responsible

Natural Resources Canada (NRCan)
Office of Energy Research and Development (OERD)
CanmetENERGY

Primary Objective: Energy

Objective

­- to support the development and commercialization of a range of technologies, including process integration, learning-based expert systems, combustion systems and controls, manufacturing processes, and environmentally friendly and energy-efficient processes for energy intensive industries, ­- to support energy technology innovation to produce and use energy in a cleaner and more efficient way and ­- to deploy technologies that help to reduce GHG emissions.

Target Group

private sector (industry, research institutes, companies, consortia and alliances, individuals), associations, other funding agencies, universities, provincial and municipal governments and research organizations and international organizations.

Driver of energy consumption or emissions affected by policy: Specific energy consumption / Carbon intensity / Relative efficiency / Fuel mix / Feedstock use / technology implementation rate

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

all industry is eligible

Quantitative Target? no

Progress Monitored? yes

Verification Required? no

Enforced? no

Sanctions: Not applicable

Requirements on the Target Group

  • The PERD program also issues calls for proposals to federal departments and agencies which specify areas of R, D&D focus and criteria for selection.  Successful applicants must provide progress reports.
  • No information available on specific requirements for other R, D&D initiatives.

Support by Government

Implementation Toolbox

CanmetENERGY provides a range of analysis tools, including: i) process integration analysis, ii) pinch analysis, iii) computational fluid dynamics analysis.

Complexity of Implementation

Government

R,D&D directed to the energy intensive sectors in industry involves the application of value added scientific expertise to solve complex problems through the R,D&D process.

Target Group

R,D&D directed to the energy intensive sectors in industry involves the application of value added scientific

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions no information available no information available
Estimated costs/benefits for industry no information available
Estimated cost for government ecoENERGY Innovation Initiative - Program's planned spending in 2011-2012: $24.23 million, Program's actual spending in 2011-2012: $19.07 million [4]

References & Footnotes

References

[1] Natural Resources Canada, CanmetENERGY web site http://canmetenergy.nrcan.gc.ca/industrial-processes/1574

[2] Natural Resources Canada, Improving Energy Performance in Canada, Report to Parliament Under the Energy Efficiency Act for Fiscal Year 2009-2010

[3] Natural Resources Canada Departmental Performance Report for the reporting period ending March 2011.

[4] Natural Resources Canada, Clean Energy website http://www.nrcan.gc.ca/sustainable-development/departmental-strategy/6655

Footnotes

(*1) These energy end-uses account for approximately 80% of all energy used by industry in Canada.

(*2) Cost shared grants which are now fully allocated.