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Last year was again very busy for SDTC. The Foundation underwent its second

interim evaluation; hosted its first-ever national Cleantech Summit; and issued

new calls for submissions to its SD Tech Fund and NextGen Biofuels Fund.

I am pleased to report that the outcome of the interim evaluation was positive.

The final report, conducted by an independent third-party, validated the

rationale for SDTC’s $550 million SD Tech Fund and characterized the net benefits

of its investments as “very large,”with SDTC projected to return 12 times its

investment to Canadians in the next decade. The report also recommended that

recapitalization of the Fund “should rank high among government’s investment

opportunities.” I congratulate the SDTC management team and staff for achieving

such impressive results. Key findings of the evaluation are outlined on page 21.

Greening Canada’s Economy: The SDTC Cleantech Summit was held on October

21, 2009. It attracted more than 300 entrepreneurs, CEOs, venture capitalists,

investment bankers, senior government officials and representatives of the

domestic and international media for a day of discussion about the potential of

cleantech for Canada and its economy. Participants agreed overwhelmingly on

the need for continued investment in clean technology, recognizing the sector’s

capability to drive economic growth, create jobs and achieve environmental

objectives. They concluded that government support through SDTC is critical to

fostering the short-, medium- and long-term success of cleantech in this country.

SDTC and its Board of Directors have benefited from the engagement and

on-going dialogue with the Government of Canada. This strong relationship,

in combination with our continuing collaboration with provincial partners, has

helped us engage multiple players from across the public and private sectors to

build Canada’s green economy.

The results are clear. In 2009, SDTC allocated

$114 million, approved 33 projects and saw the

completion of another 7, for a total of 33 since the Foundation’s inception. Since

April 2002, SDTC has issued 16 calls for statements of interest through its SD Tech

Fund and received 1761 responses from across the country. That totals roughly

$17 billion in project potential from over 5300 companies and institutions.

SDTC’s broad portfolio touches nearly every technology area and major Canadian

economic sector, including forestry, buildings, automotive, oil and gas and

agriculture. With over 50% of our portfolio involving clean energy, SDTC is

providing tools to allow action by both regulated industries and those that are

generating credits for emerging domestic carbon markets. Purchase and use of

these clean technologies will enable Canadians, whether at work or at home, to

take action – increasing productivity and saving money at the same time.

Today multiple clean technologies are being adopted within each sector,

producing synergies that are “greening” these sectors. My fellow Board members

and I look forward to seeing that transformation continue to unfold, and to SDTC’s

continued leadership position in making this transformation possible.

I thank all members of the Board of Directors, Member Council, Investment

Committee and Staff for their hard work in 2009.

Sincerely,

Juergen Puetter

Chairman

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