Chris Boivin, Vice President, Investments, Sustainable Development Technology Canada

Sustainable Development Technology CanadaSustainable Development Technology Canada1
Sustainable Development
Technology Canada
North American
Climate Policy Forum,
June 2016

Sustainable Development Technology Canada2 Sustainable Development Technology Canada2
Presentation Outline
• SDTC’s Role
• SDTC Funds
• Approach Taken and Results to Date
• Lessons Learned

Sustainable Development Technology Canada
Mandate
Sustainable Development Technology Canada3
• SDTC is a policy instrument of the Government of Canada to deliver
environmental and economic benefits to Canadians.
• As a delivery agent, we foster the development and
demonstration of technological solutions that address:
• Clean Air;
• Climate Change;
• Clean Water;
• Clean Land.
• Forge innovative partnerships and build a SD technology
infrastructure.
• Ensure timely diffusion - increase number and rate of uptake of
technologies into the marketplace across Canada, providing
national benefits.

Sustainable Development Technology Canada
At a Glance
Sustainable Development Technology Canada4
• SDTC funds Canadian cleantech projects and builds capacity in the
companies that lead them as they move their ground-breaking
technologies to market
• SDTC began operations in November of 2001
• Registered as a not-for-profit
• Operates as an arm’s length independent organization
• Funding allocation of more than $1 billion from Government of Canada
(>$900M committed to projects to date)
• Accountable to Parliament through the Minister of Innovation Science
and Economic Development

The SD Tech Fund™ supports development and
demonstration projects that address climate change, air
quality, clean water and clean soil. The Government of
Canada has allocated a total of $965 million for the fund.
SDTC has Two Funds that Support
Canadian Cleantech
SDTC’s NextGen Biofuels Fund™ supports the
establishment of first-of-kind large commercial-scale
facilities for the production of next-generation renewable
fuels. Has Allocated Roughly $80M to projects. It is no
longer accepting applications.

Sustainable Development Technology Canada6 Sustainable Development Technology Canada6
Commercializing Innovation
SDTC’s funds are positioned to address funding gaps in commercializing technology.

Approach since 2001
State of affairs when we started in 2001 – Sustainable Technology was a
very nascent industry, little capacity, supporting infrastructure, established
markets, financial support etc.
What was our focus:
• Cast the net wide across sectors and ensure private sector participation;
• Take risks in many technology areas, identify failure modes, learn, capacity build;
• Establish a critical mass of companies in key SD Tech verticals (Power Gen,
Transportation, Energy Production, Waste Management, Water Treatment, Energy
Storage etc.);
• Foster the establishment supporting capacity infrastructure (financial, policy,
education, supporting expertise and services etc.); and
• Become the central point of understanding and support for the SD Tech space in
Canada.

SD Tech Fund Investments
>80% of leveraged investment is from private sector
$928 Million
from SDTC
$2.45 Billion
Leveraged
from Public and
Private Sources
320
Projects
$3.3
Billion
= =
Total Portfolio
Project Value
Leveraging our investments

Portfolio by Cleantech Segment
9
$34.8
$143.5
$89.5
$54.6
$38.8
$149.9
$134.7
$33.6
$4.0
$125.9
$32.4
$0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0
Agriculture
Biorefinery Products
Cleaner Fossil Fuels
Energy Efficiency
Energy Infrastructure/Smart Grid
Industrial Processes & Products
Power Generation
Recycling & Recovery
Remediation and Soil Treatment
Transportation
Water & Wastewater
SDTC Funding
SDTC Funding ($842M) by Analytica Advisor Sector as of March 31st, 2016

The Challenge
Markets changed dramatically over the last 15 years….
• Expectation of a carbon regime, no expectation of a carbon
regime, small regional carbon incentives;
• Biofuel subsidies, no biofuels subsidies;
• Major economic downturn 2008;
• $12/mmbtu NG, $3/mmbtu NG;
• Solar industry correction; and
• $140 oil, $29 oil.
Making it very difficult to pick winners

Lots of Patience and Diversity is Key
……..long runway and diversity of the portfolio and risks taken allowed
some things to stick and for critical mass to emerge
….from 5 to 10 technologies in the market in 2007
……….to 25 in the market in 2010
…………to >70 technologies in the market in 2016
…..and another >170 in progress and on a trajectory to get there

Results since inception
Steady growth over the past 5 years as a result of technology adoption and diffusion in the global market.

SDTC Portfolio Companies

Lessons Learned
15 Sustainable Development Technology Canada15
• Need to ensure resilience of business and ability to survive highs and lows in major market
baselines.
• The higher the technology performance advantage over incumbents the better.
• Carbon regimes can help with resilience of business case, but most resilient opportunities
have strong economic value propositions/cost savings to end users that drive adoption with
low to no dependence on carbon policy.
• Setting a carbon incentive too high can distort competitiveness indicators and temporarily
unlock opportunities that are vulnerable to policy change driven by eventual unwillingness to
pay – this can delay more economically competitive opportunities.
• If setting a high $/ton CO2 threshold, need to see a cost curve trajectory for technology that
drives towards cost parity in a timely manner.
• Regional incentive instruments favoring regional advantages can help but opportunities are
global and scalability is limited by replicability of competitiveness (inconsistency of
frameworks challenges adoption).
Our highest performing projects have not relied heavily on policy instruments to drive
adoption. they have relied on strong value propositions - accelerating the commercialization
pathway for these opportunities may be advisable.

Commercialization Success Factors
Our experience has shown that 4 key factors contribute to
achieving commercialization of technologies:
1. Management capacity and strength
2. Strength of the Innovation and Freedom to Operate
(Intellectual Property protection) and associated value
proposition
3. Strong path to market partner participation
4. Time to commercial-ready technology – the earlier the
technology, the greater the risk that the value proposition will
erode by the time it reaches market

SDTC Funding Model Ensures Market
Pull and Private Sector Participation
Criteria for Funding:
1. Pre-commercial
2. Consortium
3. Innovation (e.g. IP; know/show how)
4. Marketing Plan (tech replication in CDA/Int’l)
5. Business Plan (Management, Financing)
6. Environmental Benefits over status quo tech
SME Applicant
+
Technology
Consortium
partners
Customer (Demonstration Host)
Key Hardware Supplier
Key Services Supplier
Government (Other)
Value- Added Sales Channel
2/3
$
(cash
and in-
kind)
1/3
$
(cash)
Project Funding

Additional Information

SD Tech FundTM: Priority Areas
Responsible Natural Resource Development
• Technologies that reduce the environmental impact of oil and gas
exploration, development and production
• Technologies for the sustainable development of mineral resources

Carbon-Free Power Generation and Distribution
• Innovations that lower the cost of renewable power generation and
enhance its deployment
• Technologies that convert primary energy sources to carbon-free
energy carriers such as steam, electricity or hydrogen without
combustion

Remote and Northern Community Utility Systems
• Adaptation and demonstration of renewable energy technologies,
waste and waste water systems for remote communities

Energy Efficiency for Industry and Communities
• Technologies related to next generation transportation with a special
focus on freight and heavy-duty vehicles.
• Technologies that increase resource use efficiency in industrial
processes.

Next Generation Technologies with Longer-term Benefits for Canada
• Biofuels and Biorefineries: Technologies using biomass to produce
chemicals or fuels replacing those made today using fossil fuel sources
• Sustainable Agriculture and Food Security: Technologies that reduce the
usage of water, increase yield and improve drought resistance of agricultural
crops

CarbonCure Technologies Inc.
Typically, the process of producing precast
concrete blocks uses both energy-and-cost-
intensive steamcuring and cement to
achieve quality benchmarks. In response,
Halifax-based CarbonCure Technologies
has developed a universal retrofit
equipment component that uses waste CO2
to reduce steam curing energy by 38%,
cement content by 10% and defect rates by
20% while maintaining or exceeding quality
standards. The CO2 is permanently stored
in the block as solid limestone attributing to
a reduction in lifecycle greenhouse gas
intensity of 17% for every block produced.
The project aims to validate the
performance of the technology through two
full-scale industrial demonstrations.

Minesense Technologies Ltd.
Canadian mining operations produce 2 million tonnes of waste
rock a day. In order to get at the “pay” rock or “ore”, a mining
operation must move and dispose of a large amount of waste rock
that, using conventional sorting methods, does not have an
economic concentration of minerals. MineSense will develop their
High-Frequency Electromagnetic Spectrometry (HFEMS)
technology to measure the amount of a given mineral at the point
of extraction, allowing operators to better sort the rock based on
mineral content prior to processing, thus saving costs and
requiring less energy to process it. Thanks to increased metal
recovery, longer life of mine and decreased environmental impact,
the technology could increase the total value of a mining operation
by as much as 50 percent, as well as revive mines considered
“end of life” with a more accurate assessment and classification of
mined mineral content. Once widely used, this technology could
save a typical base metal operation mining 10,000 tonnes of ore
per day as much as 15 GWh/yr or 8.16 Mt CO2e/yr.

Temporal Power Ltd.
Fast changes in power output from a wind farm can add megawatts of
power in a matter of seconds and induce significant voltage spikes and
sags. These rapid fluctuations lead to challenges in regulating voltage and
power quality on distribution lines. Temporal Power Ltd. and Hydro One
Networks are working to demonstrate how an innovative Canadian flywheel
electricity storage technology can improve the way wind power is connected
to the electricity grid. The flywheel based storage solution developed by
Temporal Power will be located on the Hydro One distribution network to
mitigate challenges caused by the intermittent output of power from wind
farms and to support the grid during faults. Temporal will use a novel low
loss flywheel generator combination to deliver a 500kW power rating per
unit in an array of up to 10 flywheels (i.e., +/- 5 MW) that has the capacity to
absorb real power for up to six minutes, and release it back to the Hydro
One distribution network for the same duration. The demonstration
represents one of the world’s largest wind integration projects utilizing
flywheel storage technology.

Morgan Solar Inc.
High Concentrating Photovoltaic (CPV) is recognized as being a substantially more efficient way
to collect solar energy in comparison to conventional photovoltaic (PV) approaches. To date,
virtually all CPV companies concentrate the sunlight using bulky and expensive optics such as
Fresnel lenses or curved mirrors. As a result, CPV systems have struggled to compete with PV
systems on installed cost ($/W and $/kWh). Morgan Solar has developed a patented Light-Guide
Solar Optic (LSO) technology which concentrates solar energy in a fraction of the volume of
competing CPV solutions. The use of thin, lightweight, and fully sealed acrylic optics enables
system wide cost reductions. A 50% reduction in $/W of installed costs can potentially shorten the
economic payback period for large-scale solar farms by several years.

@SDTC_TDDC sdtc.ca
Sustainable Development
Technology Canada
Chris Boivin – VP Investments
(613)234-6313 ext 293
c.boivin@sdtc.ca
www.sdtc.ca

Chris Boivin, Vice President, Investments, Sustainable Development Technology Canada

Recommandé

Recommandé

Contenu connexe

En vedette

En vedette (14)

Similaire à Chris Boivin, Vice President, Investments, Sustainable Development Technology Canada

Similaire à Chris Boivin, Vice President, Investments, Sustainable Development Technology Canada (20)

Plus de Sustainable Prosperity

Plus de Sustainable Prosperity (20)

Dernier

Dernier (20)

Chris Boivin, Vice President, Investments, Sustainable Development Technology Canada