Cleantech in Québec A dedicated baseline study of pureplay clean technology companies in Québec - Écotech Québec
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Cleantech in Québec A dedicated baseline study of pureplay clean technology companies in Québec
1 Contents
About the survey........................................ 4
1. Clean technologies defined..................... 6
2. The cleantech sector in profile................ 9
2
3. Conclusion............................................24
Appendix..................................................26
3
Building a better working world In a fast-paced world where change is the only constant and opportunities abound in the face of challenge, EY’s purpose is doing our part in building a better working world. Building a better working world means taking an active role in shaping a new framework for progress. We believe it also means having a strong sense of obligation to use our talent and knowledge to help our community. This survey is a perfect fit with our commitment to promoting a culture of respect for the environment and building a better working world.
Foreword
With growing public awareness of climate issues and increasing
commitment from governments, Québec’s booming cleantech
sector has businesses paying close attention.
Cleantech embraces all sectors of the economy. From green process innovations
for food production and sustainable natural resource management to driving
energy efficiency in manufacturing, real estate and transportation, every area of
activity is affected.
Cleantech offers companies major business opportunities, placing a clear focus
on rethinking operations to reduce their environmental footprint. But while it cuts
across all sectors of the Québec economy, cleantech is relatively unknown.
This report sets a baseline for a later, more in-depth, exploration of companies
whose main focus is clean technologies. Businesses whose core value proposition
is to derive greater benefits from improved environmental and economic outcomes
are pureplay cleantech companies.
I would like to thank Écotech Québec, our main collaborator in producing this
report. I also want to thank all the respondents and the many other stakeholders I
met in carrying out the survey. They have helped to assemble the basic information
to bring into clear focus what until now have been little-known players in the clean
technology industry, pureplay cleantech companies, which nonetheless deserve full
recognition for their contribution to Québec’s economic and social development.
I hope you enjoy our report!
Patrick Bossé
Québec Energy Sector Leader
2 | Cleantech in Québec
Positioning Québec firmly in
the global green economy
Green economy. Sustainable growth. Climate change
Écotech Québec mitigation. Low-carbon society. Paris Agreement on Climate
represents Québec’s Change. Clearly, there is no lack of fertile ground for novel
cleantech cluster,
supporting key players
ways to meet the needs of both today and tomorrow.
such as companies,
researchers, investors Clean technology has a pivotal role to play, and yet remains a sector that
and sector-based many people are unaware of. Often difficult to define, the cleantech ecosystem
associations to accelerate involves a host of actors: entrepreneurs, users, researchers, investors,
the development, influencers, accelerators, among others. But greentech innovations are at work
financing and across all sectors. Cleantech is everywhere! And that’s precisely what makes it
commercialization of so hard to get a handle on this fast-growing industry.
clean technologies. In a climate where governments have shown a clear willingness to go green,
A non-profit organization, consistent and accessible cleantech data have become crucial to developing
Écotech Québec receives policies and programs to support sector growth. Together with EY, we decided
financial support from to more clearly carve out a part of this ecosystem — companies actively
a number of private and engaged in developing and commercializing innovations. We wanted to know
public sector players. more about their makeup, how they’re evolving, the challenges they face and
their outlook for the future. This baseline survey allows us to better grasp what
drives these entrepreneurs.
We owe our sincere thanks to the EY team for this tremendous work which
has given us insight into these innovative entrepreneurs who help improve
our quality of life.
Denis Leclerc
President and Chief Executive Officer, Écotech Québec
Cleantech in Québec | 3
About the survey In recent years, cleantech has grown both globally and throughout Québec. Despite its increasing importance across all sectors of our economy, no clear profile of its true place in Québec exists that would allow us to compare the situation at home with other markets. Our goal was to provide a baseline to bridge that gap. This report is based on a survey carried out from June to August 2017. Approximately 100 Québec pureplay cleantech companies participated. The data presented here were compiled from the survey responses received. The main objective of the survey was to measure the size, strength and impact of these businesses in Québec, and to serve as a future benchmark against which sector growth may be measured over time. A liftoff study to set the baseline Québec’s cleantech ecosystem is extensive. For this first phase, the survey considered only businesses that innovate in cleantech design and development, new business models or service offerings, and for which innovation is the key focus of their value proposition — pureplay clean technology companies. Our report does not include users who incorporate clean technologies into their own operations or companies where only one department or division is dedicated to cleantech development. Nor does it include companies that generate energy for resale, specialized consultants, influencers or parts suppliers and service providers. The companies selected to participate in the survey were identified and sorted from multiple lists provided by public and private organizations. Invitations to take part in the survey were sent to some 350 businesses that, at first glance, met the criteria for pureplay cleantech companies and were registered in the Québec Enterprise Register. The selection and invitation process was carried out by Écotech Québec. That being said, this survey does not aim to provide an exhaustive overview of the cleantech ecosystem. It must be taken as a first attempt to better understand the cleantech sector in Québec. About the results Because they operate in an emerging sector, cleantech companies are difficult to identify. Not only is there no NAICS code that applies to them as a group, but a significant number are startups. In reviewing the survey results, readers should keep in mind that many sector startups remain under the radar and thus escape analysis. It should also be noted that the data presented were compiled from the responses provided by pureplay cleantech companies themselves and were not audited or otherwise reviewed. 4 | Cleantech in Québec
The cleantech ecosystem
Incubators/
accelerators User entities
Parts suppliers
and service
providers
Unions and Specialists and Research
associations influencers and training
R&D services
Public/private
funding Governments
Pureplay
cleantech
companies
Québec pureplay cleantech companies at a glance
• Around 350 companies1
• Close to 9,000 jobs2
• Total annual revenue: more than $1 billion2
• Annual investments in R&D: nearly $300 million2
1
Pureplay cleantech companies identified and sorted by Écotech Québec.
2
Extrapolation of survey data from 350 companies.
Cleantech in Québec | 5
6 | Cleantech in Québec
1
Clean technology
defined
Given the emerging status of the cleantech sector, an internationally
recognized definition has yet to emerge. That being the case, a look at
the definitions used by major ecosystem players is revealing.
The following definition is helpful: Lastly, because it reiterates the key points in both of the
“Clean technology, or ‘cleantech,’ should not be confused others, we have chosen for this study the definition of clean
with the terms environmental technology or ‘green tech’ technologies articulated by Écotech Québec, Québec’s
popularized in the 1970s and 80s. Cleantech is new cleantech cluster:
technology and related business models offering competitive Clean technology — also known as cleantech, green
returns for investors and customers while providing solutions technologies, greentech, eco-innovations, ecotechnologies
to global challenges. Where greentech or envirotech and ecotech — is part of a sustainable development outlook
represents the highly regulatory driven, ‘end-of-pipe’ that includes new products, services, technologies and
technology of the past (for instance, smokestack scrubbers) processes that:
with limited opportunity for attractive returns, cleantech • Significantly reduce negative impacts on the environment
addresses the roots of ecological problems with new science, (environmentally effective)
emphasizing natural approaches such as biomimicry and
biology.”1 • Offer users superior performance at a lower cost
(economically superior)
These technologies can also be delineated using the
definition offered by Sustainable Development Technology • Help improve quality of life by optimizing resource use
Canada (SDTC) in its 2016/2017 annual report. SDTC is (socially responsible)3
an arm’s-length foundation created by the Government of
Canada to support projects that develop and demonstrate
“new technologies to address issues related to climate
change, air quality and clean water and soil.” SDTC invests
in “Canadian companies that, through their innovative
technologies, contribute positively to Canada by creating
quality jobs, driving economic growth and protecting the
environment.”2
1
Clean Technology Venture Investment Reaches Record $8.4 Billion in 2008 Despite Credit Crisis and Broadening Recession, Cleantech Group, 2009-01-09.
2
Annual Report 2016/2017, Sustainable Development Technology Canada.
3
Écotech Québec website, Clean Technologies tab.
Cleantech in Québec | 7
8 | Cleantech in Québec
2
The cleantech sector
in profile
Cleantech companies already have a solid presence in Québec, where
startups operate alongside more established companies.
Nearly six in ten businesses were launched in the last
ten years, and nearly one in three is under five years old.
The people behind the businesses
The lion’s share of founders studied science or technology.
This is not the first time around for most of them, who
already have previous startups under their belts.
• Nine in ten founders studied science or technology
• Three in five founders have already launched at least
29% one other business in their careers
Under 5 years
• One in five founders is a woman
44% 5 to 10 years Only one in ten businesses over ten years old was founded
10 years and up by a woman, but the ratio triples for businesses under
five years old, with three in ten founded by women.
27%
Cleantech in Québec | 9The cleantech sector in profile (cont’d)
A diverse workforce The survey shows that the average salary in cleantech firms
is about $60,000 per year and that one in four employees
The vast majority of the sector is made up of small earns over $75,000.
businesses. In fact, 50% of businesses have 13 employees
or fewer. While businesses average 27 employees, 80% have
Breakdown of employees by salary
fewer than that.
The survey provides a breakdown of the pureplay cleantech
workforce. It shows that employees’ education levels are
6% 11%
particularly diverse and balanced: 53% of employees have a
college, high school or trade school diploma, while 47% have
a university degree ranging from bachelors to PhDs. 13%
Over $100,000
34% $75,000 to $99,999
Education snapshot
$50,000 to $74,999
$25,000 to $49,999
53% 47% Under $24,999
36%
Secondary school, University degree:
trade school bachelor’s (26%),
certificate (36%) or master’s or PhD (21%)
CEGEP diploma (17%)
10 | Cleantech in QuébecAccess to talent: an asset for Québec
Companies surveyed on the ease of operating in Québec’s An attractive sector
cleantech industry were asked to score a series of factors as
more or less favourable to their development. Access to qualified Pureplay cleantech companies
resources was cited as the most favourable factor, as we will see
later on. should continue to have a pool
of talent to draw on in the years
ahead. According to a US survey
conducted by EY in 2017,
clean technologies enjoy a big
draw with young people under
EnviroCompétences: 20. They strongly believe that
a roundup of available training
polluting companies don’t have
Québec’s cleantech companies have access to a
large pool of talent and highly diverse expertise.
their generation’s best interests
EnviroCompétences,4 the province’s environment sector at heart and see themselves as
workforce committee, took a census of the vocational,
college and university environmental training programs
the most heavily affected by the
offered in Québec. It shows that the Québec education long-term environmental impacts.
system offers a wide range of training options, as
well as numerous green economy university and
In all, 66% of young people find
technical programs. the prospect of landing a job in
clean technology attractive.
4
Répertoire des formations diplômantes au Québec, EnviroCompétences, 2017.
Cleantech in Québec | 11The cleantech sector in profile (cont’d) 12 | Cleantech in Québec
Cleantech sectors
According to the survey, almost three-quarters of respondents felt
that their activities primarily involved product development and
marketing (73%), while the remaining quarter saw them as service
related (27%).
The energy sector is an important part of the cleantech economy.
In fact, 43% of clean technologies are used for renewable energy
production, energy efficiency, eco-mobility or energy storage
and distribution.
Beyond these, waste (15%) and water (13%) are well represented
in Québec.
Interestingly, about half of the companies operate in two sectors.
The results have been weighted to take this into account.
16% Renewable energy
15% Energy efficiency
ENERGY
9% Eco-mobility
3% Energy storage and distribution
15% Waste
13% Water
10% Green chemistry and new materials
7% Air
4% Soil remediation
8% Other
Cleantech in Québec | 13The cleantech sector in profile (cont’d)
What markets are targeted?
Today, sales are predominantly business-to-
INNO+
business (78%), with public and institutional Cited in the Québec Research and Innovation Strategy
markets coming in a distant second (17%).
as “a proven means for identifying creative solutions to
On the other hand, half of all businesses indicated meet environmental challenges,”5 the INNO+ formula
that their products and services are suitable for developed by Écotech Québec aims to generate more
both the public and institutional markets. business opportunities between organizations grappling
with environmental challenges and pureplay cleantech
companies. The aim of INNO+ is twofold: first, to increase
the productivity and competitiveness of businesses
in a range of industries and, second, to promote the
commercialization of made‑in‑Québec innovations.
Key cleantech markets of application*
46%
8%
and under
27%
Public and
12% Other
segments
institutional
Manufacturing
Aluminum
27%
Agricultural
production
and food
13% Energy
processing
and utilities
25%
Real estate
13% Oil and gas
and liquefied
natural gas
Transportation 22%
Chemicals and
pharmaceuticals
16%
Mining and
Forestry ore processing
and forest
products Construction 22%
17%
21%
*Respondents selected several applicable sectors
5
Québec Research and Innovation Strategy, 2017-2022, Government of Québec, 2017.
14 | Cleantech in QuébecGrowing revenues and Key risks
rising exports Breakdown*
Half of the companies generated revenues of under Uncertainty surrounding US 48%
$650,000 in 2016. While pureplay cleantech companies government policy
averaged revenues of about $3 million in 2016, 80%
Increased state intervention 38%
fell below that threshold, a further indication that small
businesses make up the lion’s share of the sector. Volatility in currencies, commodities and 32%
other capital markets
Pureplay cleantech companies generated 58% of their 2016
revenues in their home market of Québec. Rising protectionism 28%
Global geopolitical instability 23%
Breakdown of global revenues in 2016 Restrictions on employee mobility/barriers on 15%
movement
6% Cyber security threats 12%
8%
Other 16%
9% Québec
United States *Multiple answers allowed
58% Europe
Rest of Canada
20% Other
Québec on the
international stage
With the adoption of its new
International Policy and the 2016
In 2018, the companies expect to double their 2016
revenues. While all regions are set to grow, the United
2020 Québec Export Strategy, the
States is expected to lead the pack, accounting for 40% of Government of Québec has raised
anticipated growth. As a result, Québec cleantech companies the profile of its foreign delegations,
expect to generate nearly one quarter (24%) of their
revenues in the US, compared with 8% in 2016. which promotes the influence
and competitiveness of the clean
technology industry beyond our
borders. Other organizations, such
as the Canadian Trade Commissioner
24% Service and the clusters comprising
the International Cleantech Network,
of which Écotech Québec is a member,
also provide springboards for Québec
companies expanding into international
The companies were also surveyed on certain
macroeconomic risks and, in contrast to their forecasts for
markets by supporting them in
strong international growth, nearly half of pureplay cleantech identifying clients, complementary
companies are concerned about the risks associated with US expertise or strategic partners.
government policies and the possible decline in global trade
due to protectionism and increased state intervention.
Cleantech in Québec | 15The cleantech sector in profile (cont’d)
Sharply higher investment in R&D
Half of the companies invested under $200,000 in R&D
Intellectual property
in 2016. On average, investments in innovation totalled
$820,000 per business, yet only 20% actually spent that
We have no data available on the other
amount. In 2016, the companies invested an average of 27% strategies for protecting IP. However,
of income in R&D. this profile, while partial, shows that a
Investments in R&D are expected to total some 60% in 2018. great many Québec pureplay cleantech
companies are not protecting their
Protecting intellectual property innovations. This finding is supported by
Among the businesses surveyed, 55% held at least one the study, Forging a Cleaner and More
patent. Excluding companies that hold 50 patents or more, Innovative Economy in Canada,6 which
the businesses hold an average of four.
notes, “Whereas Canada was shown as
The majority of businesses, or 57%, reported that protecting
leading when it comes to research, in
intellectual property was an important issue. Conversely, 12%
of businesses felt that protecting intellectual property was particular cleantech research undertaken
not a concern. by academic institutions, Canada failed
to compete in commercializing that
Intellectual property research into market-ready technologies,
as measured by the number of filed
cleantech patents.”
12%
Not a concern
A moderate concern
31% A significant concern
57%
6
orging a Cleaner and More Innovative Economy in Canada, a study by
F
Gilles Duruflé in conjunction with Louis Carbonneau, produced jointly
by Cycle Capital Management and Sustainable Development Technology
Canada, December 2016
16 | Cleantech in QuébecAccess to funding a key issue
Half of businesses have raised less than $1 million in financing Critical components
since inception. While they averaged $10 million each, only 15% of
businesses raised more than $10 million. to innovate
In general, over half of all funding is provided by the founders
and their entourage (54%). One quarter of funding comes from
“Canada has lagged behind
public coffers (22%), particularly through government programs or the United States on a per
incentives. The remainder is raised mostly from venture capitalists capita basis in both venture
(17%).
capital and debt financing,
When surveyed on the ease of doing business in Québec as a
cleantech, companies were asked to score a series of relatively both critical components in
significant barriers to business development. The red tape helping companies innovate,
surrounding funding applications was cited as one of the biggest
barriers, as noted below. scale up their operations
and commercialize their
Cumulative funding sources since inception technologies.”7 This conclusion
was demonstrated in a study8
on Canada’s competitiveness
7%
regarding the financing chain
22%
17% for the cleantech sector,
Public funding
which benchmarked Canadian
Founders and entourage cleantech companies against
Venture capital US cleantech companies
Other
and identified strengths
and weaknesses in relative
54%
economic terms.
7
“ Canada’s Global Competitiveness Threatened by Lack of Adequate Financing of Cleantech Innovations,” press release,
December 2016.
8
Forging a Cleaner and More Innovative Economy in Canada, a study by Gilles Duruflé in conjunction with Louis Carbonneau,
produced jointly by Cycle Capital Management and Sustainable Development Technology Canada, December 2016.
Cleantech in Québec | 17The cleantech sector in profile (cont’d)
When it comes to government programs, scientific research
and experimental development (SR&ED) incentives are
the most accessed, by 55% of companies. Next are federal Business incentives
!
and Québec HR programs, with uptakes of 39% and 29%,
Many cleantech companies may not know they
respectively.
qualify for Québec and federal refundable credits
under SR&ED tax credit programs they have yet
Utilization of government programs to discover. And since registering for the array of
tax incentives available can seem daunting and
cumbersome, some don’t even apply.
SR&ED 55%
Businesses would be wise to consult professionals
who specialize in SR&ED and other business
Human resources 39%
incentives for help with all the paperwork to
capitalize on tax credits and a wide range of other
Sustainable Development Technology 19% business incentives. There are also incentives for
FEDERAL
Canada (SDTC) Foundation client companies that adopt clean technologies.
Cleantech companies should learn about these
Export 12% programs and build them into their value proposition.
The most popular government incentive programs
Marketing 7% available to businesses are covered in the appendix.
Other programs 5%
SR&ED 55%
Human resources 29%
QUÉBEC
Export 29%
Marketing 26%
Other programs 5%
18 | Cleantech in QuébecFunding to drive future growth Funding requirements over
the next two years
When asked about anticipated funding requirements through
the end of 2018, over half (54%) of businesses reported
needing $2 million or more, with 29% answering $5 million 9%
or more.
R&D and marketing were the top reasons for this funding, 31%
particularly in international markets. 20% Under $1 million
$1 million – $2 million
$2 million – $5 million
$5 million – $20 million
Over $20 million
15%
25%
Cleantech in Québec | 19The cleantech sector in profile (cont’d)
Barriers to growth
We surveyed businesses on the funding, market access, talent and innovation barriers they face. We noted that talent and
innovation issues are not seen as key detractors. Financing and, to a lesser extent, market access came out on top.
Category Barrier Average
score
out of 5
Funding Funding of commercial pilot projects and commercial value demos for technologies 3.41
Red tape surrounding funding applications 3.40
Identifying funding sources and understanding eligibility criteria 3.07
Innovation financing (R&D) 3.03
Regulatory, approval and zoning issues 2.95
Compliance and certification 2.95
Market access
Export expertise and market intelligence 2.64
Service or technology pricing and competitiveness 2.82
Low relative cost of water, waste landfill, electricity or fuel 2.52
Carbon market; Québec’s cap-and-trade system for GHG allowances 2.08
Electricity generated in Québec from renewable sources 1.86
Innovation Technology development 2.66
Access to testing and lab facilities 2.44
Supply 2.36
Procurement and defence of intellectual property 2.34
Access to mentoring and accelerator programs 2.16
Employee compensation and retention 2.83
Talent
Access to sales, marketing and communications talent 2.68
Access to qualified production and installation resources 2.61
Access to qualified R&D resources 2.61
1 — None 2 — Low 3 — Medium 4 — High 5 — Very high
20 | Cleantech in QuébecDoes Québec stack up?
We asked respondents to score Québec on various criteria,
A cleantech showcase
including the regulatory environment, starting a business, for Québec
and access to a skilled workforce, markets, and public and
private funding. Unproven technologies can be a hard
As previously discussed, access to a skilled workforce scored sell with major private buyers, but
most favourably, with access to markets and funding perceived leveraging public procurement to
to be most problematic. host demonstration projects in live
deployments could boost adoption of
Scoring the Québec business environment Québec cleantech. These showcases
Average out of 5
would allow entrepreneurs to place the
economic and environmental virtues of
Skilled
their clean technologies on display to
3.69
workforce prospective clients. Public procurement
Starting a can drive big growth by:
business 3.15
• Helping smaller cleantech companies
Regulatory
2.96 achieve critical mass
environment
Access
• Hosting demonstration and
to public 2.86 prototyping projects
funding
Growing the
• Extending the marketing reach of
business 2.81 cleantech companies by framing
Access to real‑life user benefits
markets 2.66
• Accelerating adoption of a range of
Access
to private 2.46
clean technologies
funding
• Promoting Québec cleantech
1 — Very poor 2 — Poor 3 — Neutral 4 — Strong 5 — Excellent entrepreneurship and innovation
worldwide
Cleantech in Québec | 21The cleantech sector in profile (cont’d)
Cleantech companies upbeat Company position in three years’ time
about the future
Significantly
As noted earlier, cleantech companies foresee better 76%
strong business growth over the next two to three
years. They expect R&D spending to surge 60% and Moderately
revenues to double over the period. better 16%
And these growth forecasts are reflected in their
Steady 6%
confidence in the future. In fact, 92% of respondents
expect their company position to be better in the
next two to three years. Worse 2%
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The EY 7 Drivers of Growth
22 | Cleantech in QuébecCleantech in Québec | 23
24 | Cleantech in Québec
3
Conclusion
The vast majority of Québec pureplay cleantech companies
are small businesses that are upbeat about the future. They
see talent as their top development asset and capitalize on
cleantech’s big draw with young people.
Access to funding and markets is seen as central to The partial portrait of Québec cleantech companies
their ambitions, yet protecting their innovations and in this report can serve as a baseline for a more
claiming the tax credits and incentives they qualify for extensive study. The data collected can also be used to
remain on the to-do list for many cleantech companies. keep tabs on Québec cleantech companies over time,
Exploring new ways to streamline the funding and compare and contrast conditions at home with
environment and, in particular, cut down on red tape developments in other markets.
should be a top priority for the other players in the
cleantech ecosystem.
Cleantech in Québec | 25Appendix
Government incentive programs
Program name Description Financial assistance*
Scientific Research and Federal and Québec tax incentive program designed to Provides two types of assistance:
Experimental Development encourage Canadian businesses to conduct R&D in Canada federally – assistance or refund 15% or 35%; provincially –
(SR&ED), Revenue Canada, 14% to 30% refundable
Revenu Québec
Strategic Innovation Fund, The program is designed to support businesses of all sizes Combined government financial assistance for a project
Canadian Government and comprises four streams: (1) Encourage R&D necessary must not exceed 50% of the cost of the project.
to accelerate technology transfer and commercialization of
innovative products, processes and services; (2) Facilitate
the growth and expansion of firms in Canada; (3) Attract
and retain large-scale investments in Canada; and (4)
Advance industrial research, development and technology
demonstration through collaboration between academia,
nonprofit organizations and the private sector.
Build in Canada Innovation This federal program helps Canadian companies of all sizes Financial assistance of up to $500,000 for non-military
Program (BCIP), National move their state-of-the-art goods and services from the innovations
Research Council of Canada laboratory to the marketplace.
Internship programs: EYC and Internship program open to eligible employers who work in Financial assistance of up to 50% of an intern’s salary
Natural Resources Programs, science, technology, engineering, mathematics (STEM) or (up to $15,000) for new full-time environmental jobs
ECO Canada natural resources
SD Tech Fund, Sustainable SDTC funds Canadian cleantech projects and coaches Financial assistance of up to 33% of the eligible
Development Technology the companies that lead them as they move their demonstration project expenditures
Canada (SDTC) groundbreaking technologies to market.
Industrial Research Assistance IRAP provides financial support to qualified small and The contribution is $50,000 to $250,000 per project.
Federal
Program (IRAP), National medium-sized enterprises (SMEs) in Canada to help them
Research Council of Canada undertake technology innovation.
Applied Research and ARD Grants support well-defined applied research and The contribution is from $25,000 to $50,000.
Development Grants, Natural development projects undertaken by college researchers
Sciences and Engineering with their private-sector partners. Direct project costs are
Research Council (NSERC) shared by the company partner(s) and NSERC. Projects
may range from one year to three years in duration.
Québec Economic Development The program encourages businesses to innovate, adopt a Financial assistance can consist of repayable or
Program (QEDP), Canada technology or provide technology transfer. non‑repayable contributions. This assistance generally
Economic Development translates into up to 50% of authorized costs for SMEs.
Youth Employment Program – The program is designed to encourage SMEs in the Eligible SMEs receive a financial contribution of up to
Green, NRC IRAP green economy or green industry sectors to hire a $10,000 toward the salary of a young full-time intern for
qualified 15- to 30-year-old to have a positive impact 3 to 6 months.
on the environment.
Elevation and Acceleration The programs are designed to bring doctoral students and Financial assistance consists of a contribution of $25,000
programs, Mitacs companies together in research projects. These programs per year of salary for up to two years (Elevation) or a
provide companies with access to academic expertise, contribution of $7,500 (Acceleration). Note that the
additional funding and personalized support from Mitacs. contribution for Mitacs Québec may vary.
Canada Export (CANExport), The program provides financial assistance to Canadian Financial assistance may cover up to 50% of eligible
Trade Commissioner Service of SMEs seeking new export opportunities and new markets, expenses, with a $10,000 minimum and $100,000
World Affairs Canada particularly in priority sectors and markets with high maximum.
growth potential.
Sustainable Development The program is designed to fund cleantech projects and Financial assistance can cover up to 33% of eligible project
Technology Program Canada coaches the companies that lead them as they move their costs but not more than 50% of eligible costs of a given
(SDTC) groundbreaking technologies to market. project.
* The information presented was effective as of 1 November 2017.
26 | Cleantech in QuébecProgram name Description Financial assistance*
Programme PME en action – This program is intended to support the conduct of studies A non-refundable contribution up to 40% of eligible project
Support for the implementation prior to the implementation of investment projects in expenditures, with a maximum of $100,000 per project
of investment projects, MESI Québec, by companies from Québec or elsewhere, with a
view to increasing competitiveness and productivity, job
creation and sustainable development.
Technoclimat, Transition The Technoclimat program aims to reduce greenhouse Assistance of up to $3 million for demonstrations of
énergétique Québec (TEQ) gases and provide financial incentives for the development new technologies
of new technologies or innovative processes in the area of
energy efficiency and emerging energy sources.
ÉcoPerformance, Transition ÉcoPerformance aims to reduce greenhouse gas emissions Assistance of up to $5,000 per preliminary process
énergétique Québec (TEQ) and energy consumption of companies by financing integration study and up to $300,000 per site for overall
projects or measures related to energy consumption and analysis and other specific analyses
production, as well as process improvement.
Refundable tax credit for The tax credit for technology adaptation services was The tax credit may cover up to 40% of expenditures
technological adaptation introduced to support businesses in collecting and incurred by an eligible corporation under a contract
services, Revenu Québec processing strategic information, as well as research, entered into with a college centre for technology transfer
innovation and collaboration with other business partners. (CCTT) or an eligible liaison and transfer centre (CLT).
Créativité Québec, administered This program is designed to support businesses in The amount of financial assistance is a minimum of
jointly by Investissement Québec completing the phases required for product or process $50,000 and a maximum of $5 million, loan guarantee
and MESI development or improvement. of no more than 70% on the net loss; equity investment;
grant (exceptionally available).
Credit for university research or The tax credit for research by universities, public research This refundable tax credit is equal to 14% or 30% of
research carried out by a public centres or research consortiums pertains to scientific 80% of the amount contracted with the university or
Québec
research centre or a research research and experimental development (SR&ED) that a research centre for SR&ED work (Scientific Research and
consortium, Revenu Québec taxpayer subcontracts to an eligible public research centre, Experimental Development Program).
including CRIM, with which the taxpayer is not related.
Programme Premier brevet, The program supports innovative Québec companies Financial assistance is provided in the form of a
MESI in their first steps to protect their intellectual property non‑repayable contribution up to a maximum of $25,000.
assets.
Québec Apprenticeship Training The program is designed to provide financial support to This program provides access to a refundable tax credit of
Tax Credit, Revenu Québec businesses that offer internships in the workplace through 24% of eligible expenses.
a tax credit.
Industrial Systems Program, The program covers a wide range of measures to make Financial assistance covers up to $25,000 per analysis or
Hydro-Québec industrial facilities, processes and electromechanical $100,000 per site for all analytics projects.
systems more energy efficient.
Passeport Innovation, MESI The program is designed to support SMEs, not-for-profit Financial assistance is provided in the form of a
cooperatives and social development organizations at non‑repayable contribution of up to 80% of total project
various stages of a research and innovation project, and to expenditures. The assistance may cover up to 50% of
help them strengthen their innovative capacity. eligible expenses.
Programme de recherche en The program is designed to meet the societal challenge The maximum financial contribution is $200,000 for a
partenariat sur la réduction of combating climate change by bringing together two-year project and $300,000 for a three-year project.
des émissions de gaz à effet de researchers from complementary disciplinary fields to
serre, Québec government work in partnership projects to reduce GHG emissions in
Québec through calls for tenders and competitive grants.
Programme de soutien à la This program is intended to increase university-business Non-repayable financial assistance up to a maximum of
valorisation et au transfert research collaborations and partnerships to facilitate $500,000 per year and 80% of total project expenditures.
(PSVT), MESI technology transfer and support innovative tech firms in
their development phase.
Cleantech in Québec | 27For more information about this report,
please contact:
Patrick Bossé
Assurance Partner and
Québec Energy Sector Leader
patrick.bossé@ca.ey.com
Fany Boucher
Transaction Advisory Services Partner
fany.boucher@ca.ey.com
Thibaut Millet
Climate Change and
Sustainability Partner
thibaut.millet@ca.ey.com
Krista Robinson
Tax Partner, SR&ED and
Business Tax Incentives
krista.robinson@ca.ey.com
Karym Lahjioui
Advisory Senior Manager –
EY Growth Navigator™ Leader
karym.lahjioui@ca.ey.com
Cleantech,
a sector on
the move
28 | Cleantech in QuébecAcknowledgements
Many thanks for their support in
conducting the survey: Yacine Ba,
Guillaume Darmouni and Victoria Smaniotto.
Thanks as well to: André Barnard, Gregory Brent,
Mario Cossette, Katerine Côté, Julie Fournier,
Soraya Khouadri, Elise Laferrière,
Roxanne Lafleur, Camille Larivière, Eve Messier,
Ian Rahn, Jean‑Christophe Rivard,
Jean-Claude Surprenant and
Élizabeth Toporowicz.
Cleantech in Québec | 29EY | Assurance | Tax | Transactions | Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com/ca. © 2018 Ernst & Young LLP. All Rights Reserved. A member firm of Ernst & Young Global Limited. 2483771 ED None This publication contains information in summary form, current as of the date of publication, and is intended for general guidance only. It should not be regarded as comprehensive or a substitute for professional advice. Before taking any particular course of action, contact EY or another professional advisor to discuss these matters in the context of your particular circumstances. We accept no responsibility for any loss or damage occasioned by your reliance on information contained in this publication. ey.com/ca
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