Heavy Oil Consumption Reduction Program
The Agence de l'efficacité énergétique du Québec recently announced the creation of its Heavy Oil Consumption Reduction Program. This program helps consumers of heavy oil to reduce their oil consumption. Financial aid is available for conducting analyses and for implementing energy efficient measures that target heavy oil or that focus on switching to less polluting sources of energy, such as natural gas and the forest biomass. The program is financed through the Québec's Green Fund under Québec's Climate Change Action Plan for 2006-2012. Any corporate entity with premises in Québec that consumes targeted heavy oil is eligible for the program that covers the four following components: (1) energy efficiency, (2) switching to forest biomass, (3) switching to natural gas or (4) switching to other fuels. Generally, eligible projects aimed at reducing consumption of heavy oil will involve either replacing equipment with more energy efficient equipment, modifying existing equipment or installing new equipment and retrofits that combine different energy sources. The costs that are eligible under the program are:
- The cost of buying and upgrading equipment, including equipment for measuring energy consumption and greenhouse gas emissions;
- The cost of installing and starting-up the requisite equipment, when the work is carried out by a third party in accordance with a signed contract.
- The cost of engineering, installation, start-up and measuring work performed by the applicant's personnel, including their wages.
- The cost of measuring, quantifying and verifying carried out by an outside firm.
- The cost of engineering work done by an outside firm.
The financial aid granted by the Agence de l'efficacité énergétique is limited to the lesser of the following amounts:
- The amount required to bring the return on investment to one year for the first or second component described above
- $40 per ton of reductions in greenhouse gas emissions per year and per project, for the duration of the applicant's commitment, which may not exceed 10 years
- 75% of eligible costs for the first and second components described above, 50% of eligible costs of the third component and 50% of the supplemental costs involved in opting for the fourth component
- $2 million per project for the first and third components and $5 million per project for the second component, including the amount of financial assistance for analyses financed through the program
- The original amount requested by applicant.
For further information about the program please see:
Support for the Manufacturing Sector Program
The Support for the Manufacturing Sector Program also offered by the Agence de l'efficacité énergétique is dedicated to helping manufacturers move towards reducing their consumption of certain target fuels (light fuel oil, propane and butane). The financial help that is offered can be used for conducting analyses and for implementing energy efficiency measures with respect to those fuels. This program is also financed through the Green Fund. Any corporate entity with premises in Québec that consumes light fuel oil, propane and butane for its heating and manufacturing requirements is eligible for the program. Only the manufacturing sector can benefit from the program.
The cost of outside consultation, compensation of in-house employees directly involved in analysis work and the costs of renting equipment or measuring devices to determine the possibilities of improving the energy efficiency of an industrial site or building are eligible. The eligible analyses or studies under the program are those aimed at energy analyses of target fuels, analyses of various fuels in terms of overall value, feasibility studies of target fuels and analyses, carried out by a specialized firm, of the integration of fuel consumption procedures for an existing plant, the addition of a production line or the expansion of a manufacturing plant. Depending on the type of analysis, the financial aid offered is limited to the lesser of the following amounts: (1) for energy analyses, value analyses or feasibility studies: a maximum of 50% of the eligible costs of the analysis of target fuels or a maximum accumulation of $25,000 per site, and (2) for an integration analysis: a maximum of 50% of the eligible costs of the analysis of target fuels or a maximum accumulation of $100,000 per site.
The focus of eligible projects should be to replace equipment with more efficient equipment as regards consumption of target fuels, to modify existing equipment so as to reduce consumption of target fuels or to install new equipment for existing procedures that leads to a reduction and consumption of fuels when implementing the results of an analysis. The eligible costs in this regard are:
- The costs of purchasing and upgrading equipment, including the cost of measuring energy consumption
- The costs of installing and starting up new equipment, when carried out by a third party in accordance with a signed contract
- The costs of any engineering work and of installation, implementation and measurement that performed by the applicant's personnel, including their wages
- The costs of measurements conducted by an outside firm before and after the implementation of proposed measures
- The costs of engineering work carried out by an outside firm
- In the event that old equipment is replaced, the incremental costs entailed in the acquisition, installation and engineering of the new energy efficient equipment.
The financial aid granted for implementing these measure is limited to the lesser of (1) the amount necessary to reduce the return on investment to one year, (2) a maximum of 75% of eligible implementation costs, (3) $250,000 per project up to a cumulative maximum of $1.5 million per site or (4) the original amount requested by the applicant.
For further information please see: