Natural Resources Canada (NRCan) has launched the third round of its Industrial Facility Track, offering financial assistance to Canadian manufacturing facilities for projects that enhance energy efficiency, such as installing new zero-emissions heating and refrigeration systems.
Companies can receive a maximum of CA$5 million (US$3.62 million/€3.11 million) per proposal to cover up to 50% of eligible project costs, while Indigenous and nonprofit organizations can receive up to 100%.
“This [is] a big opportunity for facilities considering climate-friendly R744 (CO2) industrial heat pumps, chillers or refrigeration systems,” highlighted Canadian HVAC&R manufacturer Vitalis in a LinkedIn post.
The funding is provided under NRCan’s Green Industrial Facilities and Manufacturing Program (GIFMP) and is open to industrial facilities engaged in energy-intensive processes that transform materials into new products.
Applications must be submitted via NRCan’s online portal by September 26. More information about the process will be shared during a webinar hosted by NRCan on September 4 at 1 pm to 2:30 pm EDT.
Capital investments: Funding supports retrofit projects that upgrade or replace energy-consuming systems, equipment, processes or infrastructure. New construction, building-envelope improvements and fleet vehicles not directly tied to industrial processes are not eligible.
- Eligible equipment includes domestic and process hot water systems, process furnaces, dryers and kilns, steam and condensate systems, waste heat recovery and refrigeration systems.
- New equipment must be “non-emitting,” in so much that they result in zero emissions at end use, for example using electricity or other renewable energy sources. NaturalRefrigerants.com has contacted NRCan regarding criteria for refrigerants.
- To be eligible, capital investments must be paired with a recognized energy management system – either new or existing – to encourage a facility-wide approach that reduces costs and greenhouse gas emissions.
Energy management: NRCan also supports initiatives that help Canadian industry build skills, identify energy-saving opportunities and implement systems to reduce energy use and emissions.
- Workforce development and training programs will ensure the sector has adequate access to skilled energy practitioners, strengthening industry capacity, supporting job creation and fostering upskilling.
- Energy assessments and audits can identify opportunities to improve efficiency, lower operating costs, enhance business competitiveness and reduce greenhouse gas emissions.
- Energy managers play a key role in identifying energy-saving opportunities, fostering a culture of efficiency and providing guidance to implement projects effectively.
- Recognized and certified energy management systems enable organizations to systematically track, analyze and manage energy, set priorities and adopt practices that continuously improve performance.
Decarbonizing Canadian industry: Achieving Canada’s 2050 net-zero emissions target will require a major transformation of the industrial sector, according to NRCan.
- The government has committed CA$194 million (US$140.8 million/€120.9 million) to support energy management initiatives and energy efficiency-focused retrofits within the sector.
- Natural refrigerant-based heat pumps are increasingly being applied in industrial settings across Canada, from dairy processing facilities to district energy networks.
- Beyond reducing energy use and greenhouse gas emissions, electrifying industrial processes can also improve air quality and public health. A recent U.S. study found that replacing boilers with heat pumps for process heating could prevent more than 77,000 premature deaths between 2030 and 2050.
