Amount:

$20,000,000

Type of Program:

Grant & Loans


Description:

The Emissions Reduction Fund (ERF) – Onshore Program features repayable and partially repayable contributions with flexible five-year payback period options for projects that aim to reduce greenhouse gas emissions, as well as partially repayable contributions for projects that aim to eliminate emissions.

Comments on Funding:

Funding will take the form of repayable contributions similar to interest-free loans of a minimum of $100 thousand and a maximum of $20 million per company. ERF funds up to 75% of total project cost with the option to stack with funding up to 90% from other sources, such as provincial programs.

Terms and conditions:

  • offers repayable and partially repayable contributions;
  • offers five-year payback period after project completion;
  • covers expenses related to the project, such as Baseline Opportunity Assessment (BOA), salaries and benefits related to the project, capital expenses, and equipment rental; and
  • ERF may, when it considers it appropriate, retroactively fund up to 30% of eligible costs incurred from April 17, 2020 to the date of execution of the contribution agreement and no later than March 31, 2021.

When It Ends:

Intake period one now closed

Deadline:

March 31, 2022

Eligibility:

Academic institutions must:

  • be an oil and gas company, or a provincial, territorial or municipal government that owns or operates an upstream and/or midstream conventional, tight, and/or shale oil and gas facility(ies) located in Canada; 
  • be validly incorporated or registered legal entities in Canada;
  • have projects to reduce or eliminate routine venting of methane rich natural gas from conventional, tight and shale oil and gas operations.

Projects eligible for repayable contributions are those that reduce methane emissions Projects eligible for partially repayable contributions are those that eliminate methane emissions. All projects should be completed by March 31, 2023.

Applications Steps:

1

Applicants can access the application form from the ERF website and are required to register with . This web-based platform is designed to make applying easier, while helping to streamline the assessment of applications.

2

Each company can submit one proposal per intake period. Each proposal may include multiple projects at multiple facilities.

3

All projects should be completed by March 31, 2023.

Documentation Needed:

Applicants must submit a completed on-line Application Form to the ERF under the specified intake period and the following documentation:

  1. 1
    engineer certified Baseline Opportunity Assessment (BOA) or equivalent;
  2. 2
    proof of Business Incorporation, Articles of Incorporation or Registration;
  3. 3
    Business Plan for proposed project(s), which must include:
  • detailed technical description of the project;
  • financial indicators;
  • financial forecasting or analysis that includes anticipated earnings (or cost savings) resulting from the projects;
  • cost estimate that meets or exceeds a Class-3 level as per the American Association of Cost Engineers (AACE) Cost Estimate Classification System;
  • applicant’s goals;
  • problems and solutions the project proposal aims to address;
  • external and internal project risks and mitigation;
  • verification that conserved natural gas can be accepted into gas gathering or gas processing systems, if applicable;
  • repayment plan; and,
  • other items relevant to the project.

Note that the Business Plan is required in addition to the BOA or equivalent, unless the Business Plan includes all the required information contained within the BOA.

  1. 4
    financial statements as follows
  • the last three years of Audited or Reviewed Financial Statements for a business incorporated for three or more years;
  • any available Audited or Reviewed Financial Statements for a business incorporated for less than three years;
  • statements certified by the Corporation’s Chief Financial Officer in the event that the company does not have Audited or Reviewed Financial Statements (e.g., newly incorporated);
  • the most recent interim financial statements if the Audited or Reviewed Financial Statements are more than six months old.
  1. 5
    company’s Budget and Cash Flow Forecast for the next two fiscal years. Please include analysis of the potential risks impacting the financial performance anticipated and major assumptions used to prepare the Budgets and Cash Flow Forecast.
  2. 6
    background information about the company, this may include a brief history of the company, a description of the services and expertise offered by the company, as well as the mission and vision;
  3. 7
    completed Section 5 of the Application From: Applicant Attestations;
  4. 8
    completed Appendix A of the on-line Application Form: Key Milestones of the project(s) or equivalent (Refer to Appendix A: Key Milestones of the Project(s)); and,
  5. 9
    if the proposed project(s) applies to multiple facilities, provide a document with the relevant facility identification numbers and corresponding provinces if not otherwise specified in the in on-line Application Form.

Other Things to Note:

Intake 3 has been postponed and will be reissued in January 2022 with new program requirements. Stay tuned for program updates or subscribe to the ERF Onshore Program mailing list for more information.

The refocused third application intake will implement the following Program changes:

  1. 1
    Narrow the scope of projects funded only to those that fully eliminate the intentional routine venting and flaring of methane;
  2. 2
    Apply strengthened criteria to make sure we are funding projects that provide the greatest return on investment from an emissions reductions perspective; and
  3. 3
    Provide greater transparency and ensure that projects demonstrate emissions reductions that are incremental to Canada’s methane regulations.

About the author 

Maurice

Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business.
Click here to learn more about Moe's background and how he can help your business.

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