NGen — Sustainable Manufacturing Challenge
Canada
The Sustainable Manufacturing Challenge aims to accelerate the adoption of advanced technologies for net-zero emissions in Canadian manufacturing, offering up to $35 million in funding with an additional $65 million sought from industry partners.
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateMarch 25, 2024
- grant_single|closingDateSeptember 18, 2024
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Manufacturing
grant_single|grantors
- Next Generation Manufacturing Canada (NGEN)
grant_single|status
grant_card_status|closed
grant_single_labels|preview
The Sustainable Manufacturing Challenge by NGen will invest up to $35 million from Global Innovation Cluster funding, seeking additional industry investments to total over $100 million in collaborative projects. The program aims to support Canada's path to net-zero greenhouse gas emissions by accelerating the application of advanced technologies in manufacturing, focusing on areas such as low carbon energy solutions, carbon capture, and smart manufacturing for efficiency gains. Eligible projects must be transformative, collaborative, applied, and provide enduring benefits to Canada's advanced manufacturing ecosystem.
grant_single_labels|projects
Yes, there are several projects and activities eligible for this grant:
- Low carbon fuel, feedstock, and energy applied to manufacturing.
- Implementation of net-zero facilities.
- Innovative solutions for high heat generation applied to manufacturing.
- Carbon Capture, Utilization, and Storage applied to manufacturing.
- Tracking and managing GHG emissions across the supply chain.
- Smart Manufacturing for efficiency gains and GHG reduction.
- Greener/circular/sustainable materials.
- Reduction of greenhouse gas emissions.
- Reduction of energy usage and natural resource consumption.
- Operational efficiency gains.
- Waste reduction.
- Use of recycled and sustainable materials.
- Full life cycle product management and closed loop manufacturing.
- Circular manufacturing of materials.
grant_single|admissibleProjectsExample
$600,000
Ottawa
Introduce a net-zero facility model at FutureManufacturing Inc using renewable energy sources
$400,000
Vancouver
Implement smart manufacturing solutions to achieve GHG emission reductions at GreenTech Industries
$600,000
Toronto
Develop and implement a low carbon fuel system for manufacturing processes
$400,000
Montreal
Establish a closed-loop recycling system for plastic waste at CleanTech Plastics
$500,000
Edmonton
Develop a waste reduction initiative through innovative packaging solutions at EcoPackaging Ltd
$750,000
Calgary
Design and implement a carbon capture system for industrial waste gases at CleanEnergy Co-op
grant_single_labels|admissibility
To be eligible for this grant, projects must meet NGen's core strategic criteria and pursue specific objectives. Additionally, there are requirements regarding collaboration, transformation, and commercialization timelines.
- Projects must be collaborative and transformative.
- Focus areas should include low carbon fuels, net-zero facilities, high heat generation solutions, carbon capture, GHG emissions management, smart manufacturing, and sustainable materials.
- Projects should aim to reduce greenhouse gas emissions, energy usage, and waste, and employ recycled and sustainable materials.
- Eligible projects must meet NGen's four core strategic criteria: Transformative, Collaborative, Applied, Enduring.
- All projects must be completed no later than January 31, 2028.
grant_eligibility_criteria|who_can_apply
Yes, there are eligible types of companies for this grant.
- For-profit organizations
- Not-for-profit organizations that facilitate and fund research and development on behalf of the ecosystem and whose funding and/or revenue is received primarily from private-sector or industry organizations
- Non-federal Crown corporations whose funding is from commercial activities
- Indigenous organizations
grant_eligibility_criteria|who_cannot_apply
Some types of companies are not eligible for this grant:
- Other publicly funded not-for-profit organizations
- Post-secondary institutions
- Federal Crown Corporations
- Government departments or agencies
- International organizations without a registered business presence in Canada
grant_eligibility_criteria|eligible_expenses
Yes, there are eligible expenses for this grant:
- Equipment purchase (linked to the project's R&D capabilities, not for production)
- Labor (justification required for high rates)
- Subcontracting (impact on a project must be explained)
- Materials (linked to proving the advanced sustainable manufacturing capability, not for production)
- Project administration fee payable to NGen
grant_single_labels|criteria
The evaluation and selection criteria for the NGen Sustainable Manufacturing Challenge Fund involve an assessment process focused on project eligibility, collaboration, transformation, and sustainability impact, among other key aspects. Projects are scored by independent experts based on their responses to ten structured questions, ensuring they align with NGen's strategic objectives and provide significant benefits to the Canadian manufacturing ecosystem.
- Completion of Application Agreement and compliance certification
- High-level project description and alignment with advanced manufacturing capabilities
- Collaborative partnerships involving at least one SME
- Financial due diligence and assessment of financial strength
- Evaluation based on responses to ten specific assessment questions
- Independent expert assessment panels scoring out of 100 marks
- Projects costing over CAD 10 million undergo a dual-stage assessment including an interview
- Project plan alignment with timelines, milestones, and estimated costs
- Risk management plan including a comprehensive risk register
- Justification for NGen funding and clear financial commitment from partners
grant_single_labels|register
- Step 1: Membership Registration
- Any company must first become an NGen member. Membership is free and can be done through the website: NGen Membership.
- Step 2: Contact NGen Project Development Team
- Reach out to the NGen Project Development team at smc@ngen.ca to validate the eligibility of the project for the fund and to seek support in project development.
- Step 3: Screening Deadline
- Complete the Application Agreement and certify compliance with NGen's project requirements.
- Submit a project summary including purpose, collaboration details, estimated costs, and financial commitment by June 26, 2024, at 5:00 pm Eastern Time.
- Step 4: Project Screening
- NGen screens all submitted proposals to ensure they meet basic eligibility requirements.
- Provide detailed description demonstrating the project's alignment with Advanced Manufacturing capabilities and sustainability goals.
- Certify that the project would not proceed without NGen funding and provide financial due diligence information.
- Step 5: Final Application Submission
- Submit a detailed formal application including answers to 10 specific questions with supporting documents (Project Plan, Risk Register, and IP Tables) by September 18, 2024, at 5:00 pm Eastern Time.
- Step 6: Independent Expert Assessment
- The application will be assessed by an independent expert panel that evaluates and scores based on the provided answers and documentation.
- Higher budget projects (> Cdn$10 million) will go through a Dual-stage Assessment, and selected applicants may be invited for an interview on October 24-25, 2024.
- Step 7: Notification of Results
- Applicants are notified of the assessment results by NGen staff, and feedback is provided for unsuccessful applications.
- Step 8: Contracting Phase
- Upon acceptance, complete the contracting phase including the Collaboration Agreement and the Master Project Agreement.
- Projects are expected to launch by December 2024.
- Step 9: Project Completion and Reporting
- All projects must be completed, and claims filed by January 31, 2028.
grant_single_labels|otherInfo
NGen will provide up to $35 million in funding with a requirement of at least $65 million additional investment from the industry for collaborative projects aimed at improving environmental sustainability in Canadian manufacturing.
- All projects must be completed by January 31, 2028.
- Application portal opens on March 25, 2024.
- Project Screening Deadline: June 26, 2024 (5pm EST).
- Collaboration Event: May 15, 2024.
- Project Application Workshop: July 24, 2024.
- Final Application Deadline: September 18, 2024 (5pm EST).
- Interviews for dual stage projects (> CAD $10M): October 24-25, 2024.
- Eligible projects must meet NGen's core strategic criteria: Transformative, Collaborative, Applied, Enduring.
- The focus should be on approaches such as low carbon technologies, net-zero facilities, carbon capture, and sustainable materials.
grant_single_labels|contact
smc@ngen.ca
Apply to this program
NGen Sustainable Manufacturing Challenge Fund
The Sustainable Manufacturing Challenge Fund, managed by Next Generation Manufacturing Canada (NGen), aims to invest up to $35 million in collaborative industry-led initiatives that enhance the environmental sustainability of Canadian manufacturing before January 31, 2028. This funding opportunity focuses on transformative projects that align with Canada's 2030 Emissions Reduction Plan and push the boundaries of advanced manufacturing technology and cleantech.
Explaining the NGen Sustainable Manufacturing Challenge Fund
The Sustainable Manufacturing Challenge Fund is an ambitious initiative spearheaded by Next Generation Manufacturing Canada (NGen) with the ultimate goal of propelling Canada to the forefront of advanced, sustainable manufacturing on the global stage. Here’s an in-depth look at the fund, its objectives, eligibility criteria, and the process of application:
Overview of NGen
Next Generation Manufacturing Canada (NGen) is a not-for-profit corporation that leads Canada's Global Innovation Cluster for Advanced Manufacturing. NGen's mission encompasses several core objectives:
- Fostering collaboration among manufacturers and technology companies to scale transformative manufacturing capabilities.
- Enhancing the global competitiveness of Canada's manufacturing sector.
- Driving investments and innovation in advanced manufacturing technologies.
- Generating new commercial opportunities within global markets for Canadian companies.
- Developing a skilled, inclusive workforce poised to excel in the evolving landscape of advanced manufacturing.
What is the Sustainable Manufacturing Challenge Fund?
The Sustainable Manufacturing Challenge Fund is intended to catalyze industry-led projects with the potential to bolster the environmental sustainability of Canadian manufacturing. With a total investment pool of up to $35 million, this fund promotes initiatives that align with Canada’s 2030 Emissions Reduction Plan. The projects must focus on transformative advancements in areas such as:
- Low-carbon fuels, feedstocks, and energy applied to manufacturing.
- Innovative solutions for high-heat generation in manufacturing processes.
- Carbon Capture, Utilization, and Storage (CCUS) within the manufacturing sector.
- Tracking and managing greenhouse gas (GHG) emissions across supply chains.
- Transitioning manufacturing facilities towards net-zero emissions.
- Smart manufacturing techniques for efficiency gains and GHG reduction.
- Utilization of greener, circular, and sustainable materials.
Eligibility Criteria
To be eligible for funding under the Sustainable Manufacturing Challenge Fund, certain basic requirements must be met:
- The lead applicants must be NGen member companies. Membership is free and can be obtained via the NGen website.
- Applicants must be registered Canadian businesses with a value-added presence beyond a mere sales office. Eligible entities include for-profit companies, not-for-profit organizations supporting R&D, non-federal Crown corporations with commercial revenue, and indigenous organizations.
- Projects must be collaborative, involving at least one small or medium-sized enterprise (SME). Including multiple industry partners and academic or research entities as subcontractors is encouraged.
- Projects should be transformative, leveraging clean and advanced manufacturing technologies that provide a competitive edge.
- Projects must deliver enduring benefits, such as skill development, intellectual property creation, and tools or testbeds beyond the project duration.
- Projects must demonstrate a solid potential for significant commercial benefits and job creation.
- Eligible project costs should range from CAD$2 million to CAD$15 million, with specific criteria guiding the approval process for projects exceeding CAD$10 million in costs.
Financial Eligibility and Support
The funding mechanism involves reimbursement of up to 35% of total eligible project costs incurred by industry partners, with conditions on equipment acquisition, subcontracting, and product development expenditures. Key financial stipulations include:
- No single partner may receive more than 70% of the NGen funding.
- Equipment acquisition costs for sustainable manufacturing technologies cannot exceed 25% of the total project costs.
- Subcontracting costs are capped at 25% of the total project costs.
- Product development, testing, and validation expenses are allowed up to 15% of the total project costs.
Excluded Activities
Certain project activities are not eligible for funding, including:
- Projects benefitting a single firm or organization without collaborative partnerships.
- Routine or minor improvements to existing products, processes, or operations.
- Studies or theoretical work without practical commercial applications.
- Full-scale production or capital investments unrelated to sustainable manufacturing technology.
- Repeat deployments of existing technologies without transformative advancements.
Application Process
The application process involves several key steps to ensure projects meet eligibility requirements:
- Project Screening: Initial screening involves completing an Application Agreement, certifying understanding of NGen's project requirements, and providing an overview of the project's objectives, partners, and estimated costs.
- Financial Due Diligence: NGen will assess each partner's financial health to ensure they can support their project commitments.
- Application Submission: Applicants must answer ten detailed assessment questions, supplemented by a project plan, risk register, and intellectual property tables.
- Independent Assessment: An independent expert panel will evaluate and score applications based on the answers to the ten questions, considering factors like innovation, commercial potential, and environmental impact.
- Approval and Feedback: Successful applicants will proceed to contracting, while others will receive feedback and can reapply if the funding stream remains active.
Project Requirements and Deadlines
Key dates for the application and project phases include:
- Application Portal Opens: March 25, 2024
- Project Screening Deadline: June 26, 2024
- Final Application Deadline: September 18, 2024
- Interviews for Projects over CAD$10 million: October 24-25, 2024
- Project Completion Deadline: January 31, 2028
Applicants are encouraged to collaborate extensively with the NGen project team for insights and guidance throughout the application process.
Conclusion
The Sustainable Manufacturing Challenge Fund represents a substantial opportunity for Canadian companies to lead in advanced, environmentally sustainable manufacturing. By promoting collaborative innovation and supporting transformative projects, NGen helps align the manufacturing sector with national environmental goals, fostering both economic growth and significant environmental benefits.
