Agri-Tech Innovation Initiative : Stream 3

The Agri-Tech Innovation Initiative aims to boost the productivity and growth of Ontario's agri-food sector by supporting the deployment of innovative technologies and equipment designed to reduce energy costs and greenhouse gas emissions. This initiative provides financial assistance covering up to 35% of eligible project costs, with a maximum funding of $100,000 per project.

The Agri-Tech Innovation Initiative is a strategic effort to foster growth and enhance productivity in Ontario’s agri-food sector. It is designed to support the adoption of innovative technologies and advanced manufacturing practices. Among its various components, Volet 3 specifically focuses on reducing energy costs within the agri-food processing industry. This initiative aligns with broader environmental goals by promoting projects that aim to decrease greenhouse gas emissions.

The primary objective of Volet 3 of the Agri-Tech Innovation Initiative is to assist agri-food processing companies in deploying technologies and equipment that reduce energy costs. The reduction in energy costs is directly linked to a decrease in greenhouse gas emissions, making this initiative an essential part of Ontario's commitment to sustainability and environmental stewardship. The target audience for this stream includes agri-food processing companies located in Ontario. These companies must meet specific eligibility criteria, which are detailed below. The initiative is designed to support these businesses by partially funding projects that improve energy efficiency through innovative technology and practices.

Under Volet 3, the Agri-Tech Innovation Initiative offers financial assistance covering up to 35% of the total eligible project costs, with a maximum funding limit of $100,000 per project. This financial support is aimed at making significant energy efficiency improvements financially feasible for the participating companies. The maximum eligible project cost that can be covered is $285,715. Companies are permitted to apply for funding for only one project under Volet 3, emphasizing the need to carefully plan and select the most impactful energy-saving measures for improvement.

The eligible activities under Volet 3 are designed to comprehensively address various aspects of energy efficiency. They include: 1. **Purchase and Installation of Equipment and Technologies**: The initiative supports the acquisition and installation of new or refurbished equipment and technologies that improve energy efficiency. This includes energy-efficient machinery, components, and other technologies integral to the production process. 2. **Water Consumption Focused Modifications**: Projects that modify equipment and technologies to improve water consumption efficiency, such as replacing hot water systems with cold water systems for cleaning processes (Clean-In-Place systems) and installing heat recovery and reuse devices, are eligible. 3. **Facility Improvements**: Enhancements to building infrastructure that lead to better energy efficiency, such as upgrading lighting, HVAC systems, refrigeration, and ventilation, are also eligible for support.

Certain supporting activities, while not qualifying as stand-alone projects, are considered eligible when they complement the primary eligible activities. These include: - Engagement of independent experts or services necessary for the project's success, such as engineering services, staff training, and project management.

**Eligible Expenses**: - Expenses specifically necessary for the successful completion of the project and incurred after receiving project approval and before the deadline of September 30, 2027. - Costs reflecting real expenses, net of any rebates or discounts. - Purchase and installation costs of new or refurbished equipment and technologies that enhance energy efficiency. - Costs for water-efficient equipment modifications. - Building upgrades related to energy efficiency. - One-time costs for independent expert services, including engineering, training, and project management. **Ineligible Expenses**: - Any costs incurred before project approval or after September 30, 2027. - Prepaid expenses before project approval regardless of the service provision date. - Costs incurred without prior written consent where required. - Expenses related to application preparation or reporting. - Costs for advocacy for any governmental body. - Unreasonably incurred or unnecessary costs, including site development, land or building purchases, software subscriptions, and general agricultural machinery. - Services or goods provided by related entities unless pre-approved. - General operational, maintenance, and recurring costs.

To be eligible for Volet 3 of the Agri-Tech Innovation Initiative, applicants must: - Be an Ontario-based agri-food processing company. - Possess authorization to enter legally binding agreements. - Have a Business Number from the Canada Revenue Agency. - Submit a complete application by the specified deadline. - Provide a valid and up-to-date Premises Identification Number for each commercial location involved in the project. The application must outline a clear alignment with the initiative's goals, detailing the project’s expected outcomes, a comprehensive work plan, and a well-defined budget. Applications will be accepted exclusively online through the specified portal until 11 AM (EST) on March 28, 2024.

Applications will be evaluated based on several merit criteria: - Clear description of projects and their expected outcomes (15 points). - Demonstrated alignment with energy efficiency assessments or demonstrated need and project justification (25 points). - Description of the resources, experience, skills, and knowledge necessary for successful project deployment (15 points). - Extent to which the project will improve energy efficiency (25 points). - Extent to which the project will reduce operating costs (20 points).

The applications will undergo a thorough review process conducted by the AAC staff and possibly independent third parties. The review process will be on a first-come, first-served basis, with a focus on the application's completeness and adherence to eligibility and merit-based criteria. Approval decisions are typically communicated within 60 business days post the application submission deadline.

Projects must be completed by September 30, 2027, with reimbursement claims submitted by specific deadlines for expenses incurred within designated periods. Accurate and complete documentation, including paid invoices and proof of payment, must accompany reimbursement requests. Eligible costs will be reimbursed based on the approved percentage, and all reimbursements will be processed via electronic funds transfer (EFT). The AAC retains the right to request additional information to validate reimbursement claims and ensure compliance with the initiative’s guidelines and funding agreement.

The Agri-Tech Innovation Initiative, through its focus on energy cost reduction, presents a valuable opportunity for Ontario’s agri-food processing companies to enhance their energy efficiency, reduce operational costs, and contribute to broader environmental sustainability goals. By providing substantial financial support and a clearly structured application and evaluation process, this initiative aims to drive significant improvements in the sector’s energy management practices.