How much funding can be received?

The grant, sponsored by NRC and NRCan, aims to advance cost-effective, low-carbon alternatives for industrial process heating to significantly reduce greenhouse gas emissions. It supports R&D activities such as renewable energy integration, energy efficiency, and electrification, excluding hydrogen and biomass combustion technologies. Eligible activities span from proof of feasibility (TRL 1-4) to prototype development (TRL 5-9).

grant_single_labels|projects

This grant is open to small businesses incorporated in Canada. The eligible locations are determined by Canadian federal and provincial incorporation requirements.

Small businesses incorporated in any Canadian province or territory.

grant_single|admissibleProjectsExample

$280,000

Implementation of solar thermal systems for food processing

$300,000

Prototype of a high-efficiency electric kiln for pottery production

$450,000

Developing electrochemical reduction technology for wastewater treatment

$750,000

Pilot plant development to test electric arc furnace for steel production

$150,000

Feasibility study of large scale thermophotovoltaic system for industrial heat

$200,000

Development of smart heat recovery systems for industrial laundries

grant_single_labels|admissibility

Eligibility for this grant is determined by specific requirements that applicants must meet.

The applicant must be a for-profit small business.
The business must be incorporated in Canada, either federally or provincially.
The applicant must have 499 or fewer full-time equivalent (FTE) employees, including affiliated businesses.
Research and development activities must take place in Canada.
50% or more of its annual wages, salaries, and fees must currently be paid to employees and contractors who primarily work in Canada, including those in affiliated businesses.
50% or more of its FTE employees must have Canada as their ordinary place of work, considering affiliated businesses.
50% or more of its senior executives (Vice President and above) must have Canada as their principal residence, inclusive of affiliated businesses.

grant_eligibility_criteria|who_can_apply

This grant is available to small businesses incorporated within Canada that are engaged in innovation and R&D activities aimed at reducing greenhouse gas emissions in industrial processes. Eligible organizations have to meet the following criteria:

For-profit small businesses.
Incorporated in Canada, either federally or provincially.
Employ 499 or fewer full-time equivalent employees.
Conduct research and development activities within Canada.
Pay 50% or more of their annual wages to employees and contractors working primarily in Canada.
Have 50% or more of their senior executives residing principally in Canada.
Proposals can only be submitted by businesses that fall within the specified TRL scale, applying to either Phase 1 (TRL 1-4) or Phase 2 (TRL 5-9), but not both.

grant_eligibility_criteria|eligible_expenses

This grant supports projects that aim to advance technological solutions for reducing greenhouse gas emissions in industrial processes. The eligible activities focus on innovative approaches to substitute fossil-fuel based industrial heating with sustainable technologies.

Development of technologies, products, or process modifications that can replace or significantly reduce fossil-based industrial heat production.
Projects focused on recovering industrial process heat to lower overall heating needs.
Initiatives employing alternative non-thermal technologies to replace or diminish the necessity for industrial heat.
Solutions that integrate low-carbon or net-zero emissions technology, excluding biomass and hydrogen combustion.
Technological advancements applicable across multiple industries or processes.
Projects aimed at ensuring environmental safety with minimal impact during implementation.
Developments that maintain compliance with Canadian safety and certification standards under various environmental conditions.
Technologies promising a low lifecycle carbon footprint suitable for Canadian industries.

grant_eligibility_criteria|zone

The grant covers specific expenses directly related to research and development activities and resource allocation necessary for the project phase.

Personnel salaries and benefits for roles directly related to the project's R&D efforts.
Materials and equipment required for executing research and development activities.
Project-related consultancy services for technical or expert advice.
Costs associated with prototype development and testing.
Expenses for data collection and analysis pertinent to the project's success.

grant_single_labels|criteria

The evaluation and selection of projects for this grant are structured into two phases, each with mandatory criteria and point-rated criteria to ensure comprehensive assessment.

Phase 1 - Mandatory Criteria
- Question 1a: Scope (Pass/Fail) - Relevance and compliance of innovation with the challenge and essential outcomes.
- Question 2: Current Technology Readiness Level (TRL) (Pass/Fail) - Validity of TRL from 1 to 4 with supporting R&D evidence.
- Question 3a: Innovation (Pass/Fail) - Proposal meets ISC's innovation definitions.
- Question 3b: Advance on State of the Art (Pass/Fail + Points)
  - 0 points/Fail: No significant advancement over existing technologies.
  - 5 points: Minor improvements that create potential competitive advantages.
  - 12 points: Three minor improvements or one significant improvement creating competitive advantages.
  - 20 points: Two or more significant improvements or setting a new benchmark.
Phase 1 - Point-Rated Criteria
- Question 1b: Scope (0-10 points) - Addressing Additional Outcomes.
- Question 4: S&T Risks (0-10 points) - Identification and mitigation strategies.
- Question 5: Project Risks (0-10 points) - Identification and mitigation strategies.
- Question 6: Project Plan (0-20 points) - Feasibility and completeness of the Phase 1 plan.
- Question 7: Implementation Team (0-20 points) - Skill sets and experience.
- Question 8: Inclusivity (0-20 points) - Engagement of under-represented groups.
- Question 9: Financial Controls (0-10 points) - Oversight and management of funds.
- Question 10: Phase 2 Overview (0-10 points) - Outline of the development plan for Phase 2.
Phase 2 - Mandatory Criteria
- Question 1a: Scope (Pass/Fail) - Relevance and compliance of innovation with the challenge and essential outcomes.
- Question 2: TRL (Pass/Fail) - Validity of TRL from 5 to 9 with supporting feasibility evidence.
- Question 3a: Innovation (Pass/Fail) - Proposal meets ISC's innovation definitions.
- Question 3b: Advance on State of the Art (Pass/Fail + Points)
  - 0 points/Fail: No significant advancement over existing technologies.
  - 5 points: Minor improvements that have potential competitive advantages.
  - 12 points: Three minor improvements or one significant improvement creating competitive advantages.
  - 20 points: Two or more significant improvements or setting a new benchmark.
Phase 2 - Point-Rated Criteria
- Question 1b: Scope (0-10 points) - Addressing Additional Outcomes.
- Question 4: S&T Risks (0-10 points) - Identification and mitigation strategies.
- Question 5: Project Risks (0-10 points) - Identification and mitigation strategies.
- Question 6: Project Plan (0-20 points) - Feasibility and completeness of the Phase 2 plan.
- Question 7: Implementation Team (0-20 points) - Skill sets and experience.
- Question 8: Inclusivity (0-20 points) - Engagement of under-represented groups.
- Question 9: Financial Controls (0-10 points) - Oversight and management of funds.
- Question 10: Commercialization Strategy (0-10 points) - Plan to bring the solution to market.

grant_single_labels|register

grant_single_labels|otherInfo

This grant from the NRC and NRCan focuses on promoting cost-effective, low-carbon technologies for industrial heating to reduce greenhouse gas emissions.

Applicants can only apply to one Challenge Stream entry point (either Phase 1 or Phase 2).
Phase 1 funding: maximum $200,000 CAD for up to 6 months with an estimated number of 3 grants.
Phase 2 funding: maximum $1,500,000 CAD for up to 24 months with an estimated number of 1 grant.
No travel is anticipated; all communications will be via telephone or videoconference.
Eligibility criteria include being a small business incorporated in Canada with 499 or fewer full-time employees.

grant_single_labels|contact

solutions@ised-isde.gc.ca

Apply to this program

Transforming Industrial Heating into a Net-Zero Future

The grant offered by Innovation, Science and Economic Development Canada, in partnership with the National Research Council (NRC) and Natural Resources Canada (NRCan), seeks to advance cost-effective, low-carbon technologies for industrial processes. This initiative specifically targets innovations in renewable energy integration, energy efficiency, and electrification to replace fossil fuel-based heating, propelling Canada towards its net-zero emissions commitment.

Understanding the Comprehensive Framework of the Grant Program

This grant initiative is designed to accelerate the transition to net-zero industrial processes, a key component of Canada's broader commitment to reduce greenhouse gas emissions in line with the Paris Agreement. Industrial heating accounts for approximately 10% of global GHG emissions, primarily through the use of hydrocarbon fuel combustion, making it a critical area for intervention. The grant seeks to explore innovative solutions that significantly reduce or eliminate these emissions, aiding industries such as food processing, iron and steel production, chemicals, and pulp and paper manufacturing in adopting sustainable practices.

The grant is structured in two distinct phases: Phase 1 focuses on proof of feasibility for solutions with a Technology Readiness Level (TRL) between 1 and 4, granting up to $200,000 CAD for projects lasting up to 6 months. Phase 2, supporting prototype development for solutions at TRL 5 to 9, offers funding up to $1,500,000 CAD over a maximum duration of 24 months. This two-tiered approach ensures that the funding is not only accessible but also strategically aligned with the project's maturity and potential impact.

In Phase 1, proposals must clearly outline the innovation's scope, demonstrate its feasibility, and ensure it meets all essential outcomes, including a minimum 50% reduction in emissions or a decrease by 1,000 tonnes of CO2 annually. These initiatives should provide cost-effective solutions for industrial-scale heating requirements exceeding 1 MWt, leveraging technologies such as electric heat, solar thermal, heat pumps, and thermal energy storage, excluding alternative combustion methods like hydrogen or biomass.

Additionally, this funding supports the development of low-carbon technologies that could be adaptable across various industries, considering the unique Canadian environmental contexts. Proposals are evaluated based on technological innovation, advancement over current solutions, market applicability, and environmental safety. Successful projects should also align with regulatory safety standards and demonstrate a minimized life-cycle carbon footprint, ensuring they are environmentally sustainable and commercially viable.

The program encourages participation from Canadian SMEs that exhibit robust R&D capabilities, a requirement reflecting Canada's strategic aim to bolster domestic innovation. Eligible businesses must be Canadian-incorporated, with significant operations and management based in Canada.

By supporting innovation in alternative heating technologies, this grant not only contributes to the nation's environmental goals but also positions Canadian industries at the forefront of global sustainability efforts. It empowers businesses to pioneer new technologies that enhance competitive advantages while reshaping the technological landscape of industrial heating systems.

This grant is not just a funding opportunity but a pivotal movement toward a sustainable industrial future, enabling companies to lead in environmental responsibility while maintaining economic growth. The comprehensive criteria and structured phases ensure that only the most impactful and feasible innovations receive support, optimizing resources for maximum environmental and economic benefit.