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Notes to Financial Statements

Year ended December 31, 2009

(Tabular amounts in Thousands of Dollars)

Canada Foundation for Sustainable Development Technology – Fondation du Canada pour l’appui technologique au développement durable (the “Foundation”) was established by Bill C-4 of the First Session of the thirty-seventh Parliament of Canada and was incorporated under the Canada Corporations Act as a not-for-profit corporation on March 8, 2001.

The Foundation is not an agent of Her Majesty, but is accountable to Parliament through the Ministry of Natural Resources Canada. Environment Canada and Industry Canada are the other key departments involved in the work of the Foundation.

The Foundation’s mandate, governance, operations, performance requirements, accountability and relationship to the Government of Canada are defined in funding agreements that have been executed by the Foundation and the Ministers of both Natural Resources Canada and Environment Canada. In this way, the Foundation operates as a fully accountable instrument of the Government of Canada to help provide timely development and demonstration of innovative technology solutions to the nationally important issues of climate change, clean air and water and soil quality.

The Foundation manages two funds: the SD Tech Fund and the NextGen Biofuels Fund, which are further described below.

SD Tech Fund

To date the Foundation has received $550,000,000 from the Government of Canada to provide financial support to projects that develop and demonstrate new technologies that have the potential to advance sustainable development, including technologies to address climate change, clean air and water and soil quality issues. This support is provided to eligible recipients that have established partnerships which are comprised of a private sector commercial corporation and one or more of: a private sector commercial corporation, a university or college, a private sector research institute, a not-for-profit corporation, or a federal or provincial Crown corporation (or subsidiary) whose role is the provision of resources and/or facilities to the consortium as a subcontractor.

The Foundation will endeavour to ensure that there are funds available to allocate to new eligible projects up to December 31, 2010 and, where eligible projects warrant, to disburse funds up to December 31, 2012. With the exception of a reasonable amount reserved for related project monitoring and evaluation, and for wind-up costs, the Foundation will also endeavour to manage and disburse the funds in total by June 30, 2015.

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