SDTC provides funding to promising sustainable technology development and demonstration projects that are start-ups or scale-ups. For instance, when the technology itself is beyond proof-of-concept but is pre-commercial. The technology must demonstrate the potential for reducing GHG emissions reductions, minimizing water consumption and/or the reduction of water, soil or air contamination. The project must include some further development of the technology, mitigate existing technology risk and include validation of the economic viability of the technology.

The companies we currently fund are showcased here and provide a good idea of the broad scope of projects we have funded.

We don’t fund the following:

• Funding requests from non-Canadian companies
• Technologies that have the potential to deliver economic benefits without substantial environmental benefits
• Funding for research projects
• Project financing for deployment of commercialized technologies (e.g., solar/wind farms, greenhouse construction)
• The purchase of a proven technology from another jurisdiction for use in Canada
• Incremental modifications to existing technologies or processes (e.g., installation of an existing solar panel technology at an industrial site)
• One-off projects to reduce emissions at a specific site
• Funding requests from a majority-owned Canadian subsidiary of a foreign multinational enterprise

For questions about the application process, contact the Intake and Application team. Email applications@sdtc.ca

The funding is a non-repayable contribution.

No. SDTC does not take any equity in your company in return for funding, nor do we take ownership of any Intellectual Property developed through an SDTC-funded project. Taking ownership of the IP is an option for recourse only in the rare case where the project’s lead company defaults on their contract with SDTC.

SDTC funds projects that continue the development of technologies to the doorstep of commercialization or accelerate and scale-up sustainable solutions. SDTC helps companies advance the technology development and/or demonstration required to secure their first paying customer. This is typically achieved through the provision of both the technical and economic performance of the proposed technology and demonstrating its ability to solve a problem experienced by the customer – for instance, to help them meet a regulatory requirement, save costs, improve efficiency, become “greener” or similar.

SDTC defines a consortium partner as an organization that is unrelated to the applicant and is willing to make a contribution to the project at cost. This means that consortium partners cannot make a profit as a result of the project during the established project timeframe. Partners take on some project risk with the hopes that, in the future, once the technology is proven and commercialized, they will somehow benefit from its existence.

Partners can be academics, government agencies, associations, industry or other. SDTC requires the participation of at least one “market validation” partner that is representative of your target customer and can ensure market uptake for the technology post project. The partners can make in-kind contributions, provide a demonstration site, provide Intellectual Property and are expected to actively participate in the project.

Our goal is to move you through our system from submission of application to board approval in five months, with the understanding that every project comes to us at a different stage of readiness. We will work with you to move you through our process as quickly as possible.

SDTC typically provides:

• Funding on average 33% of eligible project costs.
• An average contribution of $2 million to $4 million, with funds disbursed over the life of the project up to a five-year period.

To be funded by SDTC, a project:

• Must obtain a private-sector contribution of at least 25% of eligible project costs.
• Cannot include funding from other government entities that in its totality is greater than 75% of eligible project costs.
• Must incur at least 50% of its eligible project costs within Canada.

Yes. SDTC allows up to a maximum of 75% government funding (from any level) for a project. SDTC funds on average 33% (up to 40%) of eligible project costs and requires a minimum of 25% private funding, which can include in-kind contributions from consortium partners. The balance of project costs can be funded by other government agencies.

We can move as quickly as you can. Time required for contracting is dependent on aligning required documentation from the applicant (i.e., most notably confirmation of funding for the project and signed agreements with consortium partners).

Contribution Agreements include milestones that represent a specified time period with identified deliverables and success metrics. Once the Contribution Agreement has been executed, SDTC advances our portion of the Milestone 1 budget, less than a standard 10% holdback. For example, if the budget for Milestone 1 activities is $1 million and our ratio is 33%, we would advance $297,000 ($330,000 less $33,000).

Upon completion of Milestone 1, the project team must report on the progress made during that period and the expenses incurred toward the completion of those activities. Once SDTC has reviewed and accepted the reports at the end of any given milestone, SDTC will advance our portion of the following milestone budget. Upon project completion, as well as receipt and acceptance of final project reports and project financial audit, SDTC will release the final 10% holdback.

At the completion of each milestone, the project team is required to report against the specific technical deliverables and metrics outlined in the Contribution Agreement, as well as disclose all project expenses incurred during the milestone period. Additional reporting includes the Environmental Benefits Baseline Report at the end of Milestone 1. The Final Report, the Marketing and Commercialization Report and the Environmental Benefits Final Report are all required upon project completion in order to obtain the 10% holdback.

In addition to reporting, SDTC expects the recipient to acknowledge SDTC funding in press releases and public statements about the project.

For five years post-project completion, SDTC requires recipients to complete an annual questionnaire so that we can track your success in moving your technology to market. The questionnaire focuses on sales, revenues, jobs created and other commercial activities.

Applications for funding are accepted on a rolling basis throughout the year. Our client-centric application process is simple and designed for busy entrepreneurs.

The multi-step process provides checkpoints and coaching as your application is evaluated. At every step of the process, SDTC will communicate with you whether or not we will proceed with your application.

Download our comprehensive How To Apply booklet that introduces you to our application process.

Phase One: Application

1. SDTC’s eligibility, eligibility costs and evaluation criteria to see if your project aligns.
2. Download our application template. See a sample of a compelling application.
3. You can access our application Portal to submit your application.
4. A team of internal SDTC experts will review your application to determine eligibility.
5. If an initial review shows that the project may meet SDTC criteria, you be invited to make a presentation via video conference.

Phase Two: Due Diligence

1. If your project aligns with our criteria, you will be invited to submit a detailed proposal via our online portal.
2. SDTC staff will meet you at your project site for a due diligence visit.
3. The SDTC Project Review Committee will review your project.
4. All recommended projects are presented to the SDTC Board of Directors for approval.

Phase Three: Funding Approved

If your project is approved, SDTC will work with you to prepare a Contribution Agreement (contract) to advance the project.

Similar to other federal funding programs, SDTC will reject any applications or proposals that involve the payment of a contingency fee based on the degree of success.

More specifically, neither the Lead Applicant nor to the knowledge of the Lead Applicant, any member of the Consortium, has paid or agreed to pay either directly or indirectly, any contingency fees for the solicitation, negotiation, or obtaining of SDTC funding, to any person including a broker, consultant or advisor. “Contingency fee” means any payment or other compensation that is contingent upon or is calculated based upon the basis of a degree of success in soliciting or obtaining SDTC funding. It is SDTC policy that any applications or proposals that involve the payment of a contingency fee will be rejected.

To learn about the SDTC Seed Fund and how to apply.