GLOBAL MARKET ACCELERATION FUND (GMAF) Program Guidelines Context The Ministry of Research, Science and Innovation (MRIS) requested $27M per year (beginning in FY2017-18) for 4 (four) years from the Ministry of Environment and Climate Change (MOECC) Greenhouse Gas Reduction Account (GGRA) to establish the Global Market Acceleration Fund (GMAF). GMAF will finance projects leading to the commercialization of established made-in-ontario technologies. These technologies are proven to reduce energy consumption, improve efficiencies and reduce harmful greenhouse gases in a demonstration environment and require financial assistance from the province to scale-up. GMAF will focus on projects that address gaps in the late-stage commercialization of innovative low-carbon technologies. GMAF Program Description The Global Market Acceleration Fund will help companies mitigate the risk of expanding existing production facilities of a proven product by assisting with the costs associated with scaling-up production, inventory, distribution, and sales to support growing domestic and global markets. A $27M/year four-year grant program Available to Ontario-based companies only Funding of between $2.0M to $5.0M per project Preference given to technologies with the most potential to reduce GHG emissions Support for projects with scale-up potential Growth of domestic (Ontario) sales/projects leading to increased export potential Support post-pilot scale-up projects that will lead to the accelerated commercialization of low-carbon processes and/or products in Ontario Increase the global competitiveness of Ontario firms The program is not aimed at routine improvements in technology proc esses, produc ts, designs, engineering, upgrading, marketing, or business development. 1
GMAF Policy Objectives GMAF policy objectives include, but are not limited to: Assisting Ontario s efforts to encourage consumers, businesses and workers to smoothly transition to a low-carbon economy; Showcasing a range of innovative technologies and applications that will reduce GHG emissions in Ontario and generate co-benefits; Creating economic opportunities for Ontario businesses through the later stages of commercialization and sale of innovative GHG reducing technologies; Retaining and maintaining existing jobs; and Assist Ontario-based clean technology companies in the production and sale of products and services that will provide positive environmental and societal / stakeholder impacts. GMAF Program Objectives Subject to funding limits, and the discretionary nature of the program, GMAF will consider support for expanding production and sales of innovative low-carbon technologies. Type of scale-up projects that may be considered for funding support: Enhancements to proven GHG reduction technologies and solutions that could include: o Design and engineering to enhance manufacturability; o Design and engineering to meet specific downstream customer requirements; and o Design and engineering to address significant new market applications in Ontario and beyond Ontario Scaling-up production capacity including: o Engineering and construction of new or expanded production facilities; o Acquiring new production equipment or substantially improving existing production equipment Scaling-up commercialization capacity including: o Specific initiatives to enhance the company s commercialization capabilities; o Specific initiatives to strengthen channels of distribution in support of achieving higher local, national and global market share Initiatives to enhance supply chain capacity to support scaled-up production and commercialization 2
Level of Support GMAF will provide financial support covering up to 50 percent of eligible costs for approved eligible projects that have as their goal GHG reduction and postcommercialization market development and sales growth. The provincial funding available under GMAF ranges from a minimum of $2,000,000 to a maximum of $5,000,000 per project. To maintain maximum flexibility, the Ministry reserves the right to limit individual awards to an amount below the company s request, depending on the quantity and quality of proposals received. GMAF Application Process GMAF operates on a competitive, call for proposal basis. The program is a discretionary, non-entitlement granting program administered by the Ministry of Research, Science and Innovation. GMAF intends to administer successive rounds of applications throughout the lifecycle of the program. The initial round will take place in FY2017/18. 1. Eligibility Assessment Stage Prospective GMAF applicants must complete an on-line Eligibility Assessment (EA) to confirm that their application will meet program eligibility requirements. EAs must be approved by the Ministry of Research, Science and innovation in order to proceed to the Business Case stage. The Ministry will endeavor to notify all Applicants whether they have been approved to proceed to a Business Case within three (3) business days following submission of the EA. 2. Business Case Commencing on a date to be determined, selected applicants will be invited to submit an online GMAF Business Case. The Business Case submission will build on the information submitted in the EA and will require more detailed analysis relating in particular to the scale, scope, and timing of anticipated future GHG reductions, as well as information relating to potential environmental, societal, economic, and employment impacts in Ontario. The Business Case will also demonstrate market demand for the product (being scaled-up) and the applicant s ability to meet the increased demand. 3. Evaluation of Business Case Business Case submissions will be subject to an in-depth assessment by MRIS and other Ministries staff and/or third party experts relative to the GMAF mandatory requirements, decision criteria, the level of claimed GHG reductions for the requested project funding, and other policy objectives. On the basis of the assessment, MRIS will recommend a portfolio of projects for funding approval. 3
7. Approvals and Agreements Subject to any required verification or due diligence procedures, discussions will take place with successful Business Case Applicants to agree on funding terms and conditions. Upon satisfactory completion of these discussions, initial round results will be announced. Eligibility Requirements The following mandatory eligibility requirements for GMAF applicants must be in place prior to submitting a Business Case. 1. The project must have the potential to play a significant role in assisting the province in meeting its greenhouse gas reduction goals as part of Ontario s Climate Change Action Plan. 2. Applicant(s) must be incorporated in Ontario or Canada. 3. The proposed project must occur in Ontario. 4. Agreements with any strategic partners that are necessary to enable the project to proceed must be in place prior to any agreement with the province. 5. The applicant s proposed product or service must at a minimum meet the criteria for Technology Readiness Level 8 or higher. 6. The applicant s proposed product or process must at a minimum meet the criteria for Commercialization Readiness Level 4 or higher. 7. Any safety and/or regulatory approvals necessary to deploy the technologies in the project must be in place and proof must be provided to the province. 8. Applicant must have rights to commercialize the technologies as part of the project. Such rights must include all of Ontario and preferably extend beyond the domestic market. 9. The timeline for completion of the GMAF project must be 2 years or less. 10. Requested GMAF funding must fall within the range of $2.0 million to $5.0 million per project. 11. The applicant must demonstrate funding commitments for at least 50% of eligible project costs from sources other than the province of Ontario. A stacking limit of 66% from all government sources will be applied. 4
12. The company must not have received Ontario government funding for a substantially similar project within the past 3 years. 13. Any in-kind funding commitments of the applicant and/or strategic partners must include an independent valuation of its net worth. 14. Applicants must complete an Eligibility Assessment application before submitting a GMAF Business Case. 15. The Business Case must be complete, signed by an officer of the company, must be submitted before the prescribed due date and time and must otherwise conform to the submission requirements specified in the detailed Submission Guidelines. At the Eligibility Assessment stage, applicants must assert that if invited to proceed to the Business Case stage, all eligibility requirements can be met prior to submitting the Business Case. At the Business Case stage, all eligibility requirements must be met prior to Business Case submission. Applications Applicants are referred to the GMAF online platform for detailed step-by-step instructions on how to register and apply for the GMAF Eligibility Assessment. All communications between the applicant or its agent and the Government of Ontario in respect of the application shall be conducted solely with the designated representatives of the Scale-Up Services Branch, Ministry of Research, Innovation and Science. Full contact information will be supplied to applicants. Eligible Costs Certain costs integral to implementing the commercialization project may be eligible for funding. Eligible costs are those that are incurred and paid by the applicant after the date of the approval by Ministry. Eligible costs may include: Equipment retrofit or purchase and installation costs; Raw materials and supplies required to support scale-up; Engineering; Business growth/sales development including marketing and promotion investments leading to direct sales; Direct labour costs for personnel involved in the project; Costs associated with training of skilled resources; and Performance monitoring, third party validation and evaluation costs. 5
Costs not eligible include but are not limited to the following: Land; Business case preparation, success fees, third party government relations consulting services; Vehicles and off site equipment; Travel, meals, and hospitality; General working capital requirements not directly attributable to the approved project including debt service costs, Federal or Provincial income taxes, surtaxes or special expenses; Remuneration to Shareholders; and Costs incurred that are reimbursed by a third party or other government or agency. Costs are actual cash outlays that must be documented through invoices and receipts and are subject to verification by an independent audit. Normally only costs incurred after project approval by the Ministry of Research, Innovation and Science will be considered eligible. The Ministry will have the sole discretion to determine the eligibility of specific cost components for funding. Applicants should be aware that the province will not reimburse Eligible Costs incurred or costs associated with the application if the application for funding is not approved. If Applicants have any questions as to what qualifies as Eligible Costs, Ministry staff will provide clarification. For further assistance regarding the GMAF please contact the Ministry of Research, Innovation and Science. CONTACT Global Market Acceleration Fund (GMAF) Ministry of Research, Innovation and Science Commercialization and Scale-Ups Division Scale-Up Services Branch 11th Floor, 56 Wellesley Street West Toronto, ON M5S 2S3 E-mail: gmaf@ontario.ca 6