About Our Funds
Between research and commercialization lie the critical stages of development and demonstration: the points at which technologies leave the laboratory and undergo conclusive real-world testing.
Traditionally, development and demonstration have suffered from a financing gap, making them a weak link in what’s known as the innovation chain. That gap has proven to be a significant barrier to market entry for many Canadian entrepreneurs, especially those involved in developing sustainable technologies, the market for which is still emerging. This gap has had a negative impact on the return on investment for ‘upstream’ research; Canada has not consistently obtained revenues from the successful commercialization of technologies.
SDTC bridges the funding gap in the innovation chain.
SDTC supports clean-technology projects through these critical stages—without taking an equity stake and without requiring ownership of intellectual property. SDTC’s work goes beyond funding – we help technology developers strengthen their entrepreneurial skills and business cases. Our aim is to increase each project’s chances of successfully getting to market and to help Canadian entrepreneurs carry out their innovation efforts within Canada.
SDTC currently has two complementary funds that address funding gaps in the innovation chain.
SD Tech Fund™
Thinking of submitting an application? Talk to us. The $590M SD Tech Fund™ is aimed at supporting the late-stage development and pre-commercial demonstration of clean technology solutions: products and processes that contribute to clean air, clean water and clean land, that address climate change and improve the productivity and the global competitiveness of the Canadian industry.
SDTC does not require any repayments of the financial contributions it provides to funded projects through the SD Tech Fund.
NextGen Biofuels Fund™
The $500M NextGen Biofuels Fund™ is aimed at supporting the establishment of first-of-kind commercial scale demonstration facilities for the production of next-generation renewable fuels and co-products. The fund will help Canada sustainably meet its Renewable Fuels Standards. The purpose of the fund is to encourage retention and growth of technology expertise and innovation capacity for cellulosic ethanol and biodiesel production in Canada.
Currently, these next-generation technologies, which are capital equipment intensive, are not progressing to market because they present too great a risk for the debt finance community. Equity financing is not consistently available and has been difficult to source in Canada at sufficiently attractive rates of return. The aim of the NextGen Biofuels Fund™ is to help bridge this High CAPEX (Capital Expenditure) gap and remove the final elements of technology risk in bringing next-generation biofuels into the market. This outcome will enable larger volumes of next-generation biofuels to be produced, helping Canada achieve its current renewable fuel standard using environmentally superior technologies.
The NextGen Biofuels Fund™ is positioned downstream from the SD Tech Fund™. The SD Tech Fund™ can therefore be a feeder to the NextGen Biofuels Fund™. The NextGen Biofuels Fund™, however, is open to all cellulosic ethanol and new biodiesel technologies once they have been successfully demonstrated at the pilot scale.
The NextGen Biofuels Fund™ incorporates a requirement that all contractual agreements between SDTC and Eligible Recipients include repayment terms based on free cash flow over a period of 10 years after project completion.