Up-Front Multi-Year Funding

Name of recipient: Sustainable Development Technology Canada (SDTC) for the NextGen Biofuels FundTM

Start date: July 30, 2007

End date: Agreement ends September 30, 2027; last disbursement of funds to SDTC by March 31, 2015

Total funding: $187.5 million* ($100 million statutory and $87.5 million appropriation). Original funding was $250 million. In 2012-13, $62.5M in appropriated funds was not re-profiled and was returned to the Consolidated Revenue Fund.

*NRCan's contribution via the SDTC NextGen Biofuels agreement is $187.5 million. Environment Canada contributes an equal amount of $187.5 million.

Description: SDTC is managing the NextGen Biofuels FundTM, supports up to 40% of eligible project costs to a maximum of $200 million per project for the establishment of first-of-kind, large-scale demonstration next-generation renewable fuel production facilities to encourage the future sustainability and success of renewable fuels. Next-generation renewable fuels are derived from non-traditional renewable feedstocks, such as forest biomass, fast-growing grasses, and agricultural residues, and are produced with non-conventional conversion technologies.

Since next-generation technologies are capital-equipment intensive, they constitute a greater debt financing risk compared to more established technology. The support provided by the NextGen Biofuels FundTM encourages the retention and growth of technology expertise and innovation capacity for the production of next-generation renewable fuels in Canada.

Of the $375 million in total funding from the Government of Canada, $200 million is statutory funding. The remaining $175 million in funding is to be appropriated by Parliament by March 2015.

Strategic outcome(s): 2) Natural Resource Sectors and Consumers are Environmentally Responsible

Summary of results achieved by the recipient:In 2012-13, Sustainable Development Technology Canada approved funding for the front-end development phase of two additional projects. The fund now supports three key projects which, should they be approved for full investment, would represent a total investment of $120.9 million.

Program: 2.1) Energy-Efficient Practices and Lower-Carbon Energy Sources ($ millions)
Statutory 0 0 59.3 0 0 59.3
Appropriation 0 0 62.5 62.5 0 62.5

Comments on variances: The difference between planned and actual 2012-13 spending represents the statutory and appropriated allocations for that year. There was no spending in the year because no projects advanced enough to require SDTC to draw the funds from NRCan.

Significant evaluation findings by the recipient during the reporting year and future plan: SDTC delivered its first interim evaluation, which assessed the rationale, administration, expected results, market and environmental impacts, and recommendations of the NextGen Biofuels FundTM.

The evaluation findings were positive with respect to SDTC's management and the NextGen Fund's progress.

Significant audit findings by the recipient during the reporting year and future plan: No audits were conducted in 2012.

Link to recipient’s website: http://www.sdtc.ca