Innovative Solutions Canada — Zero emissions technologies for industrial process heating

This grant provides funding support across two distinct phases, each with its specific financial structures to encourage the development of zero emissions technologies for industrial process heating.

• Phase 1 offers a grant of up to $200,000 CAD for projects lasting up to 6 months.
• Phase 2 provides a grant of up to $1,500,000 CAD for projects lasting up to 24 months.
• Selected companies are eligible to receive one grant per phase per challenge.
• Grant disbursement does not require travel as all meetings are conducted via telephone or videoconference.
• The funding is not guaranteed, with final decisions depending on evaluation results, departmental priorities, and availability of funds.
• Canada reserves the right to make partial awards and negotiate project scope changes.

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.

Who is eligible?

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.

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.

Eligible geographic areas

This grant is available to small businesses incorporated in Canada. Eligible companies must be registered either federally or provincially to participate.

• Incorporated in Canada (federally)
• Incorporated in Canada (provincially)

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.

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.