Posts Tagged ‘renewable energy’

951 Small FIT Contracts Offered by Ontario Power Authority

Ontario's clean energy economy continues to grow as the Ontario Power Authority (OPA) offers 951 new Small Feed-in Tariff (FIT) renewable energy contracts. In total, these new contracts will add 146.5 megawatts of power, which is more than enough power to give 21,000 homes electricity. The majority of these contract offers (934 projects) were for solar photovoltaic projects. There were also 16 bioenergy projects as well as one waterpower project. As a result, project developers are expected to invest over $750 million into the economy of Ontario which translates into roughly 2,200 new jobs for the residents of Ontario.

These contracts were offered to successful applicants who applied during the small FIT application period from December 14, 2012, to January 18, 2013. The OPA was allowed to offer applicants up to 200 MW to these applicants. Since only 146.5 MW was allocated to these contracts, the remaining 53.5 MW of capacity will be added to the procurement target for this fall’s Small FIT application period. More details for this next window of applications will be posted when information is available on our blog as well as the FIT website.

If you’d like to learn more about clean technology, visit our clean technology page. For other relevant clean technology funding programs, check out the SD Tech Fund and the Innovation Demonstration Fund (IDF) Program.

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Reactions to The U.S. Bioeconomy Blueprint: Innovation and concerns loom on the horizon.

The 2012 U.S. National Bioeconomy Blueprint was announced on April 26th with the purpose of assessing strategic objectives to maximise on the U.S. bioeconomy potential and to highlight ongoing efforts to meet those objectives.

However, many are concerned that the blueprint predominantly focuses on economic development while insufficiently addressing regulations to minimise social and environmental impact.

The blueprint attributes growth in the current U.S. bioeconomy sector to the development of three foundational technologies including genetic engineering, DNA sequencing, and automated high-throughput manipulations of biomolecules. It goes on to emphasise the reliance of tomorrow’s bioeconomy on the development of emerging technologies such as synthetic biology (engineering of microbes and plants), proteomics (study and manipulation of proteins in an organism), and bioinformatics (application of computational techniques to biological and related data).

The National Bioeconomy Blueprint describes five strategic objectives with the potential to generate economic growth and address societal needs.

1. Support R&D investments that will provide the foundation for the future U.S. bioeconomy in order to overcome market failures that occur when private investors are unable to collect on the full benefits of their investments and provide smaller investments in technology than the socially optimal level. This is dependent on the expansion and development of essential technologies, integration of approaches across fields and the implementation of improved funding mechanisms.

2.  Facilitate the transition of bioinventions from research lab to market, including an increased focus on translational and regulatory sciences. This relies on acceleration of progress to market to move innovation beyond the laboratory, enhancement of entrepreneurship at universities to facilitate the path from research to commercialization, and the utilization of Federal Procurement Authority to drive the creation and growth of new bioeconomy markets.

3. Develop and reform regulations to reduce barriers, increase the speed and predictability of regulatory processes, and reduce costs while protecting human and environmental health. This involves improved regulatory processes and regulations to enhance predictability and reduce uncertainty in regulatory processes and requirements as well as collaboration with stakeholders to inform efforts, stream­line processes, reduce costs and response times while simultaneously maintaining  safety and benefit to public health.

4.  Update training programs and align academic institution incentives with student training for national workforce needs at the K-12 and undergraduate levels. This will result from employer-educator partnerships and redeveloped training programs.

5. Identify and support opportunities for the development of public-private partnerships and precompetitive collaborations where competitors pool resources, knowledge, and expertise to learn from successes and failures.

In introducing the bioeconomy blueprint panel discussion that followed the blueprint announcement, panel moderator and microbiologist Dr. Bonnie Bassler describes the Obama administration as “committed to investing in biological research with the overarching goal of strengthening America’s bioeconomy”.

While the blueprint recognises that biotechnological experimentation carries inherent potential risks if applied improperly, it contends that that ethical and safety issues raised by major advances are top administrative priorities that “go beyond the scope of this [blueprint].”  Rather, the blueprint is “a guide for departments and agencies to ensure that the investments they make in the sector will be well coordinated and highly likely to generate real economic impact,” according to the White House Office of Science & Technology Policy Director John P. Holdren in his announcement of the blueprint.

Panel member Dr. Rina Singh, spoke on behalf of Biotechnology Industry Organization (BIO), which represents many of the largest oil and petrochemical producers, and discussed innovation in industrial biotechnology, or the application of life sciences to conventional manufacturing and synthetic processes, through the use of wild type or genetically enhanced microbes.  Dr. Singh paints a picture of vast manufacturing application possibilities to revolutionize the way we make and use energy, where she envisions biorefineries replacing petroleum refineries, the same way that petroleum once replaced whale oil.

However, many are concerned that the reallocation of efforts to harvest above ground sources of fuel “ignores the lessons to be learned from experiences” and that the reliance on biomass for fuel and raw materials ”will inevitably place an extremely heavy toll on food security, and further escalate forest and biodiversity destruction, land grabbing, and climate change,” according to the Global Forest Coalition 2012 report titled “Bioeconomy versus Biodiversity.”

These concerns were shared by Eric Hoffman, a campaigner with Friends of the Earth who commented that the bioeconomy blueprint “largely seems to be an endorsement for the biotechnology industry to rush ahead without any real oversight.”

A more welcomed blueprint emphasis was placed on efforts to incite collaboration among many various federal and private research agencies alongside the creation of a newly trained workforce in order to achieve novel products, processes and applications.

An example of collaborative potential for innovation was provided by panel member and cellular and molecular pharmacology expert  Dr. Keith Yamamoto who discussed the applicability of precision medicine, which builds on the collaboration of non-traditional fields in the biomedical arena such as engineering and mathematics as well as patient data to generate medical solutions for diagnoses and treatments of diseases that are tailored to individual patients rather than decisions based on statistical risk factors across large populations.

Dr Yamamoto emphasizes that the evolution of such highly specified methodologies heavily relies on a reassessment of academic process in graduate education and non Ph.D. level in order to rapidly create a much needed new work force and a collaborative continuum among discovery researchers, academia, industry entrepreneurs, foundations, government funding and regulatory agents and patients.

The reassessment of academia incentives was also discussed by the 2001 World Food Prize winner and panel member Dr. Per Pinstrup-Andersen who noted that biological science applications have contributed to yearly increases in food sources, provided food security in many parts of the world; however, he remarks that “the job is not done yet” and further research is needed to achieve what he calls “sustainable amplification” of food to ensure people eat enough and yet not too much to avoid burdening the health care system.

Dr. Per Pinstrup-Andersen believes that for progress to occur, there is a strong need to eliminate what he calls “disciplinary silos” which limit research teams by incentivizing research in narrow areas to produce publications and receive funding. He argues that collaboration requires incentives that stretch beyond money, incentives such as promotions, publication and conferences to support collaboration of interdisciplinary teams.

Similar collaborative efforts are at the forefront of Canadian innovation, with federal government incentives supporting the commercialisation of innovation from the lab by increasing its contribution to the National Research Council’s Industrial Research Assistance Program by an additional $110 million each year.  Furthermore, the Canadian federal Scientific Research and Experimental Development (SR&ED) tax incentive program is central in supporting R&D in Canada. As a world leader in health and life sciences, Canada is home to some of the top biotechnology research facilities in the world, which rely on government funding to alleviate the costs of research. In 2010, $768 million was spent on R&D by pharmaceutical and medicine manufacturers, and another $414 million on R&D relating to navigational, measuring, medical and control instruments. Such research was supported by the Canadian government who had contributed $3.47 billion between 2010 and 2011 to support innovative companies through the SR&ED program.

With so much potential innovation on the horizon, global competition is increasing the need to continue investing in research. As such, biotechnology companies conducting R&D in Canada are strongly encouraged to leverage federal and municipal incentives like the SR&ED tax credit to reinvest funds back into research and commercialization which otherwise may not be affordable, allowing them to get ahead of the competition.   

Read more about SR&ED in the biotechnology sector.

Renewable Energy Incentives: Accelerated Capital Cost Write-offs and Canadian Renewable and Conservation Expenses (CRCE) Program

There is an interesting tax incentive for the renewable energy industry which could compensate for the removal of capital from the SR&ED expenditure base: a category of deductible expenses for companies undertaking project development through the Canadian Renewable and Conservation Expenses (CRCE) program.

At the moment, the CRA allows for accelerated capital cost write-offs on capital expenditures on systems that produce heat and/or power from renewable energy sources. Class 43.1 and 43.2 capital cost allowances allow taxpayers an accelerated write-off of specific equipment designed to generate more efficient or alternatively sourced energy.   This means that for new renewable energy and energy conservation projects in which 50% of the capital is designated to efficient/renewable energy associated equipment, the government is offering a category of fully deductible expenditures.

In addition to capital, some expenses incurred during the development and start-up of renewable energy and energy conservation projects (engineering and design work, for example)  qualify as Canadian Renewable and Conservation Expenses (CRCEs), and would thus be fully deductible  or could be financed through flow-through shares. The Canadian Revenue Agency (CRA) defines a Canadian Renewable and Conservation Expense to include “certain expenses incurred in respect of the development of a project for which it is reasonable to expect that at least half of the capital cost of the depreciable property to be used in the project will be the capital cost of property described in Class 43.1 or 43.2 of Schedule II of the Income Tax Regulations.”

The accelerated capital cost write-offs for capital expenditures, combined with CRCE, are important incentives which could help offset the elimination of capital from the SR&ED program expenditure base as announced in the recent federal budget, especially advantageous to capital-intensive industries like renewable energy. Contact NorthBridge Consultants for more information about how you can benefit from CRCE.

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Toronto Public Forum: North America’s Energy Future, April 18

The Commission for Environmental Cooperation (CEC) has organized a public forum, North America’s Energy Future: Powering a Low-carbon Economy for 2030 and Beyond, through their Joint Public’s advisory Committee with a collection of energy experts from Canada, Mexico and the U.S. to discuss and answer questions regarding the current and future state of renewable energy in North America.

The day-long free event (registration required) will be held at the Delta Chelsea (33 Gerrard Street West) in Toronto, and will address complicated industry questions including: What is the future of renewable energy in North America? What are some of the challenges and barriers affecting the use of renewable energy? How can renewable energy projects be promoted in remote communities?

You can also sign up to watch a webcast of the event. This is a great opportunity for those in the clean technology and renewable energy sector to join the conversation.

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Energy News Round-Up

Energy Future Heading North

Recent talk in the Canadian energy sector has been pointing to Nunavut as representing “the future of the country’s energy sector” (see Nunatsiaq News and The Globe and Mail). Eva Aariak, Premier of Nunavut, spoke on March 14th at the Arctic Oil and Gas Symposium in Calgary to present Nunavut as the untapped full potential of Canada’s energy sector, while “decision-makers across the country mull over the importance of a national energy strategy.” Aariak described Nunavut, which is estimated to contain between 20 to 25% of Canada’s total oil and gas resources, as an alternative to Western pipelines. Tapping into the vast raw resources will require sensitive resource extraction through “economically self-reliant communities” with the support of the Nunavut people, who foster an intrinsic emotional and physical connection to the land.

Renewable Energy Business

NextEra Energy Resources has acquired two solar photovoltaic (PV) projects based in Ontario with a 40-megawatt (AC) potential from First Solar, to be owned and operating by Canadian subsidiary NextEra Energy Canada. Based on advanced thin film PV modules with advanced semiconductor technology, the projects began operation last month and are expected to provide enough power to serve over 6,400 residential homes. The power generation will contribute to Ontario Feed-in Tariff (FIT) Program and will be sold to the Ontario Power Authority under long-term contracts.

Green Energy Solution Industries is partnering with International Renewable Energy Facilitation Company (InREFCo) on their Albert Canada Project for the creation of a “waste wood to energy” project. InREFCo will introduce technical and expert support to the project, as well as a host of funding options including Power Purchase Agreement (PPA) loans.

Canadian B Corporations

Canada’s Bullfrog Power, which provides Canadians with 100% renewable energy solutions for home, business and transportation, is among the 39 Found Canadian B Corporations. B Lab, an NPO, certifies B Corporations as businesses who contribute to solving large-scale social and environmental issues and has recently extended certification reach to Canada.

To learn about how contributions to Renewable Energy technology can be eligible for federal and provincial tax credit and incentive programs, contact NorthBridge for a free SR&ED consultation.

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