Backgrounder

August 23, 2007

INNOVATION DEMONSTRATION FUND

The four-year, $24-million Innovation Demonstration Fund (IDF) helps companies develop promising new technologies by supporting them at the pilot or demonstration project stage. The fund focuses on new bio-based (made from biological or renewable materials), environmental and alternative energy technologies. 

The pilot or demonstration phase is a critical stage in the commercialization of a new innovation. Success in this phase indicates to potential customers or investors that the innovation will be competitive when brought to market.

The maximum support that eligible projects are able to receive is $4 million per project.

Investments focus on early-stage technologies that have strong potential to succeed.  Priority is given to projects that have the potential to generate a global business.

Other important conditions for investment:

• The company requires investment to get the technology "off the ground"
• There is high likelihood the company will be able to get future investments from other sources in one to two years
• The company has a significant, long-term operational commitment to Ontario.

The Innovation Demonstration Fund has committed $5.4 million so far this year to help commercialize new technologies.

The Projects 

The Woodbridge Group: BioFoam

Ontario is committing $1 million to support the research and commercialization of soy-based polyol in polyurethane automotive products.  The project will help commercialize the use of polyols — a key ingredient in the production of the polyurethane material used in automotive seats and interior pieces — produced from renewable soy oil. Currently, these materials are made using polyols derived from non-renewable petroleum. The project will be led by the Woodbridge Group, a leading supplier of automotive urethane technologies, who will bring the product to market.

GreenCore Composites: Green Inside

Ontario is committing $400,000 to Greencore Composites to set up a demonstration plant in Mississauga for the production of its Green Inside material — a high-performance natural fiber reinforced composite.

By replacing petroleum-based materials with sustainable natural fibers, Greencore's Green Inside composite offers environmental benefits while more than doubling the strength of the base synthetic material. Greencore is working to commercialize the material for use in Ontario’s auto sector.

Previously Announced Innovation Demonstration Fund Project

Plasco Energy Group

On April 27, 2007 the McGuinty government announced the investment of $4 million to Plasco Energy Group in support of a clean waste to energy project.  The plant will operate for two years and divert 85 tonnes of waste per day. The clean fuel will be used to generate electricity onsite.  About 20 per cent of the electricity generated will power the plant; the rest will be sold to the Ontario electricity market.