BACKGROUNDER
January 25, 2010
Support For Emerging Green Technology Companies
Ontario has made more than half a billion dollars available to support technology companies that require access to risk capital to grow. This includes the creation of the $205-million Ontario Venture Capital Fund, a limited partnership between the Ontario government and leading institutional investors, to provide investment funding for innovative, high-potential companies. As well, the 2009 provincial budget boosted Ontario’s commitment to support emerging green technology companies by creating a $250-million Ontario Emerging Technologies Fund and by injecting another $50 million into the highly successful Innovation Demonstration Fund.
The Innovation Demonstration Fund helps innovative companies commercialize promising new clean technologies by supporting them at the pilot or demonstration project stage. These projects help companies attract the customers and investors they need to move their technology to the global marketplace.
Through the Innovation Demonstration Fund, Ontario is investing $3.6 million in Ottawa-based Group IV Semiconductor Inc. (Group IV).Group IV has a unique technology for producing low cost and energy-saving, solid-state light bulbs for the $12 billion global light bulb industry.
Light bulbs account for as much as 15 per cent of all electricity consumption. Most of this consumption is wasteful because current lighting technologies are highly inefficient. Only five to seven per cent of the energy used by a typical incandescent bulb, for example, actually produces light. The rest of the energy produces heat that is wasted. Fluorescent bulbs are better, but still waste approximately 25 per cent of the energy they use. All that waste consumes electricity and contributes to the production of carbon emissions.
Group IV’s technology will provide inexpensive and highly efficient solid-state light bulbs that will fit into existing light sockets. In addition, this is a green technology that could result in a major reduction in greenhouse gas emissions: potentially 250 million tonnes per year worldwide – the equivalent of taking 41.5 million vehicles off the road.
Group IV is ready to move from the development phase to the pilot production phase. To do this, it needs a major upgrade of the semiconductor fabrication equipment and facilities at Carleton University. The investment by the Innovation Demonstration Fund will help Group IV achieve this and realize its plan to increase its employees from 25 to 44 within two years.
To date, Ontario has invested in 14 promising Ontario cleantech companies through the Innovation Demonstration Fund. Most recently, Ontario invested almost $1.5 million to help Sober Steering demonstrate new technology that uses sensors mounted on steering wheels to detect alcohol and prevent people who have exceeded the legal limit from driving.
ONTARIO’S INNOVATION AGENDA
Supporting innovation, such as Group IV’s technology, is part of the McGuinty government’s five-point plan for growing Ontario’s economy and part of Ontario’s strategy to become a leading green economy in North America. Ontario’s Innovation Agenda is the government’s map to help turn great ideas into good jobs for the future and better lives for Ontario families.
Backed by $3.2 billion in spending over eight years, the agenda focuses on supporting innovation and growth in sectors where Ontario has the research and business strengths to dominate high-growth global markets.
See also:
- News Release: Investing In Energy-Saving Technology
- For the Media
