Heavy oil consumption reduction program
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Please note that some changes have been made to this program. The information released on this page and in the available documents reflects these changes.
- Fuels accepted under the program now include waste oils as well as heating fuel, propane and butane when their level of respective consumption exceeds one million litres per year.
- The financial assistance limit has been raised to $5M and is standardized throughout all the components under the program.
- The program is open to a wider range of clients. Therefore, a body corporate jointly and severally bound by contract and represented by a designated applicant is also eligible insofar as the proposed project pertains to a site where heavy oil is consumed.
- New businesses are now eligible if the use of heavy oil is the only possible choice and if the expected level of heavy oil consumption can be demonstrated.
- Process rejects used for energy production and renewable energy development also become eligible under Component A – Energy efficiency and renewable energy insofar as they pertain to measures in which the applicant directly uses the recovered or produced energy (self-sustaining production).
- A new component is added to the program, Component E -Switching to electricity.
- The call for proposals is eliminated. Projects pertaining to Component C – Switching to natural gas can now be presented at any time.
- A new analysis segment has been added to Component D – Switching to other fuels.
- The number of payments required for implementing a project has been increased to four payments, which means one quarter (25%) of the financial assistance received is distributed through each payment.
- The new Detailed guide for applicants is now available. This guide provides a detailed list of the program’s components.
Description of Program
This program helps heavy oil consumers move toward sustainable development while improving their competitive position by reducing their consumption. Financial assistance is offered to carry out various analyses as well as implement energy efficient measures relating to heavy fuel oil or to switch to other forms of energy containing fewer pollutants, such as natural gas, forest biomass and electricity. This program is financed by the Green Fund and falls under Action 1 of the 2006-2012 Climate Change Action Plan.
Eligibility
Any body corporate with a place of business in the province of Quebec where heavy oil is consumed and which meets the requirements of the program is eligible. A body corporate jointly and severally bound by contract and represented by a designated applicant is also eligible insofar as the proposed project pertains to a site where heavy oil is consumed.
Program components
The program is divided into 5 sections, i.e. four areas of intervention. Depending on the specific needs or nature of the project, the applicant may opt for one or more component of the program.
Component A – Energy efficiency and renewable energy
This component aims to reduce the consumption of heavy oil through the implementation of energy efficient measures. Process rejects used for energy productionand renewable energy development are also eligible insofar as they pertain to measures in which the applicant directly uses the recovered or produced energy (self-sustaining production). This component now offers an analysis segment and an implementation assistance segment.
Component B – Switching to forest biomass
This section aims at encouraging facilities that use heavy fuel oil to switch to residual forest biomass (excluding sawdust, shavings and bark) as their energy source by means of a twofold approach: analysis and implementation.
Component C – Switching to natural gas
This component encourages facilities using heavy oil as their energy source to switch to natural gas. The approach includes analysis, natural gas connection assistance for new users, assistance for retrofitting other fuel sources to natural gas and assistance for promoting customer loyalty among natural gas users.
Component D – Switching to other fuels
This component focuses on implementing measures to replace heavy oil with other solid, liquid and gaseous fuels other than those provided for under components B and C and directly used in heat production. Fossil fuels (unless they are polluted or contaminated) and fuels that can be recycled are excluded. This component features an analysis segment and implementation assistance segment.
Component E - Switching to electricity
This component encourages thermal energy production facilities using heavy oil to switch to facilities that use electricity as an energy source. This component also features an analysis segment and an implementation assistance segment.
Eligible projects
Generally speaking, eligible projects aim at reducing consumption of heavy fuel oil by :
- replacing equipment with more energy efficient equipment;
- modifying existing equipment or installing new equipment.
To find out more about projects which do not fulfill eligibility requirements, please refer to the program’s Detailed guide for applicants.
Allowable costs
Here is the list of the program’s allowable costs:
- costs relating to the purchase and upgrade of equipment, including the equipment required to measure consumption;
- costs relating to engineering, installation, start-up and measuring work performed by the applicant’s personnel, including the remuneration of operators, up to the allowable limit previously approved at the time the agreement was drawn up.
- work performed by external engineering firms;
- costs relating to the installation and start-up of equipment when performed by a third party under contract;
- costs relating to measurement, quantification and verification work performed by an external firm before and after the installation of equipment;
- as regards the replacement of equipment: additional costs relating to the implementation of energy-efficient equipment versus the implementation of conventional equipment.
Financial assistance
The financial assistance granted by the Department for implementation work or work carried out to switch to another energy source for each component under the program is limited to the least of the following amounts:
- assistance required to bring back the return on investment to one year;
- $40 per ton of reduced GHG emissions per year and per project for the duration of the applicant’s commitment which may not exceed 10 years;
- 75% of total implementation costs;
- maximum of $5M per project (unlimited per site);
- the original amount requested by the applicant.
The financial assistance granted by the Department can be combined with assistance from complementary programs offered by partner organizations (government ministries and agencies). However, the cumulative amount of financial contributions received may not exceed 75% of the allowable costs as the applicant must also contribute a minimum of 25% to these costs.
Documents and forms
Guide and Forms
Reference materials
Improve your energy efficiency. Give us a call!
For more information about the Heavy oil consumption reduction program, contact us by phone at 1-877-727-6655 or by e-mail at efficaciteenergetique@mrnf.gouv.qc.ca.
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