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Ontario Biogas Systems Financial Assistance Program Guidebook

Author: OMAFRA Staff
Creation Date: 06 September 2007
Last Reviewed: 27 October 2009

Table of Contents

  1. Contact Information
  2. Important Dates
  4. Introduction

The Ontario Biogas Systems Financial Assistance Program is a $9 million initiative designed to encourage the implementation of biogas systems and to foster agricultural and agri-food innovation in Ontario.

Biogas systems can help the province reduce its greenhouse gas emissions and meet its renewable energy supply targets.

For agricultural producers and agri-food businesses, the benefits of installing a biogas system include revenue from production of renewable power, energy cost savings and reduced environmental risk related to the management of organic materials, including reduced odour and pathogen risks

In addition to these benefits, a biogas system will also provide food processors and other rural businesses with a new way to dispose of waste materials.

For detailed instructions on how to complete an application, please refer to the Ontario Biogas Systems Financial Assistance Program application instructions available upon request or on the Program website www.ontario.ca/biogas.

Application instructions have been developed for both Phase 1 and Phase 2. They provide valuable information that will help you complete your application. Additional copies of these documents, as well as application forms, are available from:

Ontario Biogas Systems Financial Assistance Program
Ontario Ministry of Agriculture, Food and Rural Affairs
1 Stone Road West, 4th Floor NW, Guelph, ON N1G 4Y2
Tel: 1-888-588-4111
E-mail: biogas.program@ontario.ca
Web: www.ontario.ca/biogas

Information and application forms are also available from any regional office of the Ontario Ministry of Agriculture, Food and Rural Affairs.

The Agricultural Information Contact Centre can provide further assistance.

Contact Information

Additional information and application forms are available on the Program website at www.ontario.ca/biogas or from a regional office of the Ministry of Agriculture, Food and Rural Affairs. The Agricultural Information Contact Centre can provide further assistance at toll free 1-877-424-1300 or by email at ag.info.omafra@ontario.ca.

Important Dates

January 1, 2007: Costs incurred for an approved biogas system project are eligible for funding

September 2007: Program is launched

September 30, 2008: Last day to submit a Phase 1 application to the Program

September 30, 2009: Last day to submit a Phase 2 application to the Program

March 31, 2010: Program ends

Glossary of Terms

Anaerobic digester: a vessel that undertakes anaerobic digestion

Anaerobic digestion: the decomposition of organic matter in an oxygen-limited environment

Applicant: an individual, partnership or business corporation

Biogas: gaseous product of an anaerobic digester

Biogas system: a system that normally consists of:

  • an anaerobic digestion tank or vessel
  • a biogas collection or management system, often a storage bubble
  • a biogas utilization system, such as a generator, and
  • a digestate management and storage system, often a storage tank for liquids.

Digestate: effluent from an anaerobic digester, including organic matter, liquid, nutrients and non-digestible solids;

Ministry: Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA)

Program: Ontario Biogas Systems Financial Assistance Program

Introduction

The Ontario Biogas Systems Financial Assistance Program will provide financial assistance to eligible applicants for the implementation of new biogas systems and the further development of existing biogas systems. The Program is designed to promote sustainable biogas production in the agri-food and rural sectors in Ontario. Biogas systems can help Ontario achieve reductions in greenhouse gas emissions; increase the production of renewable energy; promote the use of digestate as a land-applied nutrient; improve biogas utilization; and foster agricultural innovation and economic opportunities.

There are two phases in the Program. Phase 1 will support up to 70 per cent of the costs for farmers, agri-food businesses and others to carry out feasibility, design, and planning studies for the installation of biogas systems. Phase 1 funding is available to a maximum of $35,000. Phase 2 will provide up to 40 per cent of construction, implementation, and commissioning costs for biogas systems. The maximum total available Phase 2 funding is up to $400,000 for each biogas system (Phase 1 and Phase 2 combined). Funding is on a first-come, first-served basis for qualifying projects.

If you have not already completed a detailed biogas system feasibility and design study, you are strongly recommended to submit a Phase 1 application for this work prior to submitting a Phase 2 construction application.

Who May Apply?

Eligible applicants include individuals, partnerships or business corporations. Applicants must demonstrate their ability to complete the project. Applicants must establish the technical feasibility of the project and present the positive impact the project will have on the economy.

Applicants must sign an Agreement with the province agreeing to conditions for receiving funding.

In order to be eligible for financial assistance under the Program, projects must meet the following criteria:

  1. the biogas system must be intended to use at least seventy-five per cent (75%) agricultural products, agricultural by-products, food-based products, or food-based by-products as inputs;

  2. the biogas system must produce biogas for use in the production of electricity, or heat, or for fossil fuel replacement;

  3. the biogas system must manage digestate in a manner that avoids landfill or sewage disposal of nutrients, such as:

    1. land-application as a crop nutrient or soil enhancement;
    2. production of a value-added nutrient product (compost, liquid digestate, concentrated liquid fertilizer); or
    3. production of livestock bedding material (solid fibre digestate product); and

  4. the applicant must provide accurate and full information and otherwise comply with the terms and conditions of the Program as required by the Ministry.

Deadlines for Funding

Subject to the terms and conditions of the Program, applicants must apply by September 30, 2008 for Phase 1 financial assistance for eligible feasibility, design, and planning costs for their new biogas system or the expansion of an existing biogas system.

In order to be eligible for Phase 1 financial assistance, an applicant must demonstrate that the proposed project meets the four criteria outlined previously and that the applicant has the funds to undertake the proposed activities.

An Applicant may forego a Phase 1 application and apply directly for Phase 2 financial assistance.

In order to be eligible for Phase 2 financial assistance, an applicant must ensure the proposed project meets the four criteria listed previously and:

  • present a project proposal demonstrating their project has a reasonable likelihood of completion during the term of the Program;
  • demonstrate they meet the general eligibility criteria;
  • demonstrate an ability to finance the project;
  • demonstrate a building permit has been secured;
  • obtain a written approval from the Ministry's Technical Review Panel; and
  • demonstrate the business case and the availability of funds to undertake the project.

Applicants must apply by September 30, 2009 for Phase 2 funding for construction, implementation and commissioning costs.

How Projects Will be Funded

Available funding will be allocated on a first-come, first-served basis for projects meeting the terms and conditions of the Program and the eligibility criteria listed above. No funding is available after the March 31, 2010 ending of the Program. The last day to incur eligible expenses is March 31, 2010, but paid invoices may be submitted up to June 30, 2010.

 

Phase 1

Phase 1 will support up to 70 per cent of the costs up to a maximum amount of $35,000. Eligible Phase 1 development costs for new biogas projects or the expansion of existing biogas projects do not include in-kind contributions towards the total project costs. Costs for Phase 1 projects costs incurred by the applicant on or after January 1, 2007 are eligible, subject to the submission of reasonable proof that they were for the biogas system project (i.e., paid invoices and proofs of payment).

Eligible costs for Phase 1 include, but are not limited to:

  1. feasibility studies;
  2. engineering designs;
  3. costs required to secure a building permit (e.g., nutrient management strategy development);
  4. electrical connection impact assessment application costs;
  5. costs to demonstrate technical feasibility of biogas utilization;
  6. contract development and/or legal fees;
  7. business advisory costs.

 

Phase 2

Phase 2 will provide up to 40 per cent of costs up to a maximum amount of $400,000 for the construction, implementation, and commissioning of biogas systems, minus any Phase 1 funding received for the project.

Phase 2 costs may include in-kind contributions towards the total project costs. Consult the Ontario Biogas Systems Financial Assistance Program Phase 2 Instructions and Application Form document for the rates for in-kind contributions.

Phase 2 project costs incurred by the applicant on or after January 1, 2007 are eligible subject to the submission of reasonable proof that they were for the biogas system project (i.e., paid invoices and proofs of payment).

Eligible costs for Phase 2 include, but are not limited to:

  1. All components associated with the digester, and the related costs to construct, assemble, implement and commission these components, including management and consulting fees:

    1. pumps, piping, liquid pipelines, gas pipelines;
    2. biogas utilization equipment:
        1. electrical generation systems (generators, co-generators);
        2. boilers, combustion system;
        3. biogas cleaning systems, gas compressors.
    1. electrical equipment and control systems;
    2. heat transfer and heat recovery equipment;
    3. digester tanks, substrate (input) tanks, pre-treatment tanks, digestate storage tanks;
    4. supplemental flares;
    5. nutrient/organic matter separators, solid input devices, augers, feedstock management systems;
    6. input/output pasteurization systems, digestate treatment systems;
    7. structures (or portions of structures) containing items a. through h. above;
    8. digester and digestate gas storage systems; and
    9. other equipment approved by the Technical Review Panel.

  2. Only components located on the same deeded property as the digester are eligible, except:
    1. pipelines, associated short-term collection tanks, and pumps for moving inputs or outputs to/from adjacent or nearby properties;
    2. gas pipelines, and biogas utilization equipment, where biogas is produced at one location, and effectively utilized at an adjacent or nearby location; and
    3. electrical equipment including wiring, transformers, transfer trips and other components required for safe and reliable transmission of electricity from the biogas system site.

Any other funding an applicant has received, may receive or is eligible to receive from any other program funded directly or indirectly by the federal or provincial governments for development, construction, implementation or commissioning costs may be offset against any financial assistance an applicant may receive under the Program.

Selection Process

Phase 1 projects which satisfy the Program criteria will be approved to undertake Phase 1 activities. Eligible costs will be reimbursed once the Ministry receives project invoices.

Projects which have completed Phase 1 activities can apply directly to Phase 2. If the applicant has sufficient feasibility studies and project designs, they can apply directly for Phase 2 funding. For Phase 2 projects, applicants must complete a Phase 2 Application Form and demonstrate that they meet the following requirements:

  1. demonstrate evidence of ability to finance the project;
  2. demonstrate that a building permit has been secured; and
  3. approval from the Technical Review Panel based on a scoring system.

Applications will be reviewed by a Technical Review Panel comprised of a technical biogas expert(s), electrical connection/biogas utilization expert(s), and financial/economic development expert(s). Projects will be reviewed and assessed without limitations based on their ability to:

  1. encourage agriculture and food sectors in Ontario;
  2. contribute to meeting Ontario's energy supply needs;
  3. reduce greenhouse gas emissions and provide other environmental benefits; and
  4. contribute to local, regional and provincial economies.

Agreements

Successful applicants will be required to sign an Agreement (i.e., contract) with the Province of Ontario. All parties signing Agreements with the Province of Ontario are required to have comprehensive general liability insurance with coverage for at least $2 million per occurrence. This insurance must show the Province (Her Majesty the Queen in right of Ontario) as an additional insured on the policy and contain the endorsements specified by the Agreement and is required throughout the term of the Agreement.

A Certificate of Insurance from the applicants will be required to be submitted to the Ministry of Agriculture, Food and Rural Affairs prior to the signing of an Agreement.

Municipalities and First Nations are required to submit a Municipal By-law or Band Council Resolution allowing the municipality or the band to enter into an Agreement with the Province of Ontario. All companies and incorporated entities will also be required to provide proof of current status (i.e., certificate of status) and constituting documents (i.e., articles of incorporation or letters patent, etc.) which indicate the full and proper name of the organization as well as the proper signatories to the Agreement. In the event a business or organization is not incorporated (i.e., sole proprietorship, unincorporated association, etc.), please be advised that the individual who signs the Agreement on behalf of the business or organization will be assuming personal liability for the project. Moreover, this individual would be subject to all the terms and conditions set forth in the Agreement.

Applications

Information and application forms are available on the Program website at www.ontario.ca/biogas. Information and advice on how to develop a project and complete an application is also available by contacting a regional office of the Ministry of Agriculture, Food and Rural Affairs or by calling the Agricultural Information Contact Centre toll free at 1-877-424-1300 or by email at ag.info.omafra@ontario.ca. A listing of offices and phone numbers are available on the ministry's website at www.ontario.ca/omafra.

Applications may be submitted either in hard copy (one unbound copy) or electronically by email to the Ontario Biogas Systems Financial Assistance Program.

Applications can be submitted to:

Ontario Biogas Systems Financial Assistance Program
Ontario Ministry of Agriculture, Food and Rural Affairs
1 Stone Road West, 4th Floor NW, Guelph ON N1G 4Y2
Tel: 1-888-588-4111
Fax: (519) 826-4336
E-mail: biogas.program@ontario.ca

Dates for Applications

The Ontario Biogas Systems Financial Assistance Program will accept Phase 1 applications at any time up to September 30, 2008, or until all funds have been allocated.

There are a minimum of four application review times per year for Phase 2 applications (October 15, January 15, April 15, and July 15), or until all funds have been allocated. The deadline for Phase 2 applications is September 30, 2009. Please consult the Ontario Biogas Systems Financial Assistance Program website at www.ontario.ca/biogas or the OMAFRA Agricultural Information Contact Centre for more information.

Confidentiality

Application forms and supporting material submitted to the Province of Ontario will be subject to the Freedom of Information and Protection of Privacy Act. Any information submitted in confidence should be clearly marked "confidential" by the applicant.

Where to get an application or help

Information and application forms are available on the Program's website at www.ontario.ca/biogas. Information and advice on how to develop a project and complete an application is also available by contacting a regional office of the Ministry of Agriculture, Food and Rural Affairs or calling the Agricultural Information Contact Centre toll free at 1-877-424-1300 or by email at ag.info.omafra@ontario.ca. A listing of offices and phone numbers are available on the Ministry website at www.ontario.ca/omafra.

 

For more information:
Toll Free: 1-877-424-1300
Local: (519) 826-4047
E-mail: ag.info.omafra@ontario.ca