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Application Requirements

ecoENERGY for Biofuels – Application Requirements

The deadline to apply to the ecoENERGY for Biofuels program was March 31, 2010. The program is no longer accepting applications.

Application requirements include but are not limited to the following information:

  • Production timing for plant or facility
  • Company ownership / parent company
  • Contact details
  • Production / technology / feedstock information
  • Source of funding / operating costs
  • Environmental assessment
  • Project development details / construction milestones
  • Declaration of the applicant

In addition, the following mandatory documents are required for all applicants:

  • A letter attesting to the fact that the project will be producing by March 31, 2010, certified by an engineer registered in Canada. The letter must include the fuel type and volume (to be) produced and the quality specification (to be) met, as well as a commissioning schedule (existing producers only)
  • Articles of Incorporation of the applicant and parent company, if applicable
  • Three years of audited financials statements for both the applicant, and its parent organization (if applicable). For organizations that have not generated audited financials, provide financial statements prepared by a professional accountant for every year or partial year of company operation, up to three years
  • Proof of ownership or lease (for the duration of the contribution agreement) of the plant or facility, or a conditional lease or purchase arrangement
  • Documentation detailing all ongoing lawsuits faced by the applicant or parent company. Based on input by legal advisors, provide information on the expectation of success on the part of the plaintiff and possible cost of the judgment.  In addition, list all unpaid judgements currently faced by the applicant
  • A comprehensive technology plan, signed by a professional engineer registered in Canada, that describes in detail the conversion process and technology, and includes a process flow diagram, with all relevant inputs and outputs, that demonstrates the selected technologies’ ability to produce at nameplate capacity and at fuel specifications acceptable to the Program. The documentation must also include information on plant design (plant mass, water and energy balances; plant process and instrumentation; tank farm loading and unloading; and structural design) and about the technology provider
  • Documents, such as firm contracts, letters of intent and conditional purchase orders, from one or more suppliers for the purchase of feedstock representing at least 50% of the applicant's nameplate capacity requirements (documents must include how much feedstock will be supplied and for how many years, and must be signed and dated)
  • A detailed funding breakdown which includes all sources of funding, both private and public:
    • For firm financing, include the entirety of the signed contract(s) detailing all aspects of the funding arrangements
    • For conditional contracts, include the complete draft contract(s) and clearly outline all conditions required in order for both parties to finalize the contract(s)
  • Additional documentation regarding investors and/or lenders, appropriate to the project’s funding scenario
  • Breakdown of planned operating cost expenditures for the first year of production, including expected feedstock costs for the first six months of operation and the source(s) of funding to provide for these costs
  • If applicable, the Conflict of Interest Disclosure
  • Breakdown of planned operating cost expenditures for the first year of production, including expected feedstock costs for the first six months of operation and the source(s) of funding to provide for these costs
  • If a federal EA process has been completed, provide a copy of the Environmental Impact Statement (EIS) and a copy of a signed version of the Environmental Assessment Screening Report
  • If a federal EA process has not begun, provide a project description following the Canadian Environmental Assessment Agency's Operation Policy Statement (PDF, 354 KB)
  • If a provincial EA has been completed for this plant or facility, provide the provincial EA document

Project development information for new producers must also include the following mandatory documentation:

  • Comprehensive project plan, signed by a professional engineer registered in Canada, who is employed by the prospective contractor/developer/builder, which provides a detailed description of site development, construction activities, project costs, milestones with dates, and expected commissioning date, and should include a Gantt chart or critical path
  • Demonstration of fixed and conditional financing arrangements for 100% of the estimated project costs, where the financing meets the following minimum requirements:
    • ≥ 30% firm financing, as per the program’s definition (based only on conditions which exist for the duration of the agreement)
    • ≥ 30% conditional only on receipt of an ecoENERGY for Biofuels or ecoAgriculture for Biofuels Capital (ecoABC) contribution agreement
    • ≤ 40% subject to other conditions
  • Conditional contract(s) or arrangement(s) for engineering and construction contract(s) with lead contractor(s), sub-contractor(s) and technology engineer(s)
  • Identification of current construction status, that outlines progress in the areas of site preparation, excavation and footing installation, foundation work, framing and enclosing of building, equipment installation and testing, installation of HVAC, installation of feedstock and fuel storage, and utilities hook-up. NOTE: Companies leasing facilities need only report on the areas related to equipment, storage and utilities
  • Confirmation that the site location is appropriate for the intended use and any site issues have been properly mitigated
  • Documents, such as firm contracts, letters of intent and conditional purchase orders, for the primary equipment and expected delivery timeframes once a contract is signed
  • Documents, such as firm contracts, letters of intent and conditional purchase orders, for the sale of biofuel representing at least 50% of applicant's nameplate capacity
  • Documents, such as firm contracts, letters of intent and conditional purchase orders, for the sale of co-products produced
  • List of required permits, licenses and authorizations required by the federal, provincial or territorial, and municipal governments
  • List of required actions to secure permits and expected costs, with timeframes, for obtaining each permit
  • Written demonstration that applications have been submitted for each of the required permits, licenses and authorizations, including contact information with each government authority for each application
  • A completed Environmental Impact Statement, pursuant to the Canadian Environmental Assessment Act (CEAA). Information on its preparation is found at:
  • A current balance sheet prepared by a professional accountant, generated no earlier than 30 days prior to your application submission date, which demonstrates the company is in a positive asset position (assets-liabilities) 
  • A list of key personnel and supporting resumes for CEO (or equivalent), CFO (or equivalent), Senior Engineer, and Plant/Facility Manager
  • Letters of support from MP, MPP, Mayor, City Council, Chamber of Commerce or local business development organization, and at least two other local community groups with relevant interest to the project

Process Overview

On December 14, 2009, stakeholders were informed of Program changes and asked to express, by December 21, 2009, their intention to participate in the Program under the new rules and to self-identify whether they are “new” or “existing” producers in accordance with Program definitions.

Program administrators will contact all those who express an interest in participating in the Program and fully explain the process.

Specifically, “existing producers” are asked to complete the new Program application and demonstrate that they are, or will be, in production by March 31, 2010. As soon as Program Administrators deem that all Program criteria have been met, an existing producer will receive a letter of conditional approval and contribution agreement negotiations will begin subject to funding availability and fuel type, as needed to meet Program volume targets. Once negotiations are successfully completed and the agreement is signed and a decision is rendered pursuant to the Canadian Environmental Assessment Act, producers start receiving the incentive.

“New producers” are also asked to complete the new Program application and ensure that they clearly demonstrate the “advanced state of readiness” of their project. Program administrators will immediately review the applications and assess if the minimum threshold of advanced state of readiness has been met. New producers, who are successful in demonstrating this minimum threshold, will receive a letter informing them that their application will undergo a full merit-based assessment against all Program criteria.

This full assessment will be conducted after the application deadline of March 31, 2010 and the respective applications will be rated and ranked. Letters of conditional approval will be sent and contribution agreement negotiations will then begin with applicants based on highest ranked projects by fuel type, subject to funding availability and volume target needs.

NOTE: Contribution agreements that were signed prior to the Program changes will be honoured and amendments will be drafted to incorporate new operating parameters, including new incentive rates and payment regime.

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