Ontario Biogas Systems Financial Assistance Program

What is it?

It is a $9 million program announced July 2007 to help agri-food businesses and farmers turn farm and food waste into clean energy by using biogas systems.

Biogas systems are fuelled by renewable materials like manure, crops and crop residues and food processing by-products. They can produce electricity and heat or replace conventional fuels like natural gas. Agricultural and food producers can use the electricity produced from their biogas system to meet their operation's energy demands. In addition, they can sell excess electricity to the electrical grid. Another benefit is the reduction in greenhouse gases.

Who Qualifies?

Farmers and food processors are eligible for this program.

What is the benefit to your company?

You can receive up to $400,000 towards activities such as feasibility studies for the installation of biogas systems. It can also cover part of your construction and implementation costs.

For Example….

A biogas system that uses food waste such as bran from a flour mill, glycerine from a bio-diesel plant, distillers' grain from an ethanol plant, paunch manure and specified risk materials from an abattoir or vegetable wastes from a vegetable processor could make 60 to 600 cubic metres (depending on waste) of methane from every tonne of waste or by-product. Every tonne of by-product that gets turned into methane to be burned as fuel at the plant, saves 10 tonnes of greenhouses gas from entering the atmosphere - as well as reducing the amount of fossil fuels that would otherwise get used.

A cubic metre of methane has about two-thirds of the heat value of natural gas with a burner tip value of $0.20 to $0.30 per cubic meter (when compared with natural gas.) If wastes need to be land spread or hauled to landfill, the real value of using a waste stream for energy is about $30 to $75 per tonne in avoided costs. For a medium-sized food processor with 20 tonnes per day of low-energy wastes that means more than $100,000 per year in avoided costs (waste management and natural gas).

How do I apply?

The province is also streamlining the process that farmers follow to build bio-digesters and is providing clear standards and guidance on designing and operating these facilities.

Program guidelines and application forms for the program are now available online http://www.omafra.gov.on.ca/english/engineer/biogas/index.html or by contacting:
Ontario Biogas Systems Financial Assistance Program
Ontario Ministry of Agriculture, Food and Rural Affairs
1 Stone Road West
Guelph, Ontario
N1G 4Y2
Tel: 1-888-588-4111
E-mail: biogas.program@ontario.ca

Where can I find more information?

For more information on biogas systems, please visit the Energy Opportunities web page http://www.omafra.gov.on.ca/english/engineer/energy.html.

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