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Copyright © 2014 by SDTC™ Sustainable Development Business Case 1

1 The SD Natural Gas Fund

Natural gas has a central place in Canada’s energy mix, meeting 30 per cent of the country’s energy needs. Today, over 6.4 million customers representing well over half the Canadian population rely on natural gas for heat and power in homes, apartments, buildings, businesses, hospitals and schools. In 2012, approximately 3,900 PJ (100,000 gigalitres) of natural gas was consumed in Canada. According to the National Energy Board, approximately 5,700 PJ of natural gas will be consumed in Canada in 2030. This represents an increase in consumption of approximately 45% from 2012, with the greatest absolute increases in the power generation and industrial sub-sectors. By the year 2030, commercialization of new technologies in the downstream natural gas sector in Canada will achieve GHG emissions reductions of 30.7 Mt-CO 2 e per year from the the business as usual emissions projection.

The SD Natural Gas Fund™ is the result of collaboration between Sustainable Development Technology Canada (SDTC) and the Canadian Gas Association (CGA), through its venture“Energy Technology Innovation Canada”(ETIC), that will see $15 million provided by the CGA and matched by SDTC, creating a fund valued at $30 million over 3 years. The Fund will be managed by SDTC and will support the development and demonstration of new downstream natural gas technologies.

The SD Natural Gas Fund™ will invest in technology areas outlined in the Business Case and technologies that are attractive to the international export market. SDTC will accept applications to the Fund twice per year. Successful applicants will be invited to submit a detailed proposal that will be subjected to SDTC’s rigorous due diligence process, with a final funding decision made by SDTC’s Board of Directors. The Fund will support, on average, 33% of overall project costs, subject to the successful completion of project milestones.

The SD Business Case™ for Downstream Natural Gas identifies and prioritizes emerging clean technologies which have, or will have, the highest impact in addressing particular industry needs related to the SD Natural Gas Fund™.

1.1 About SDTC

On behalf of the Government of Canada, Sustainable Development Technology Canada (SDTC) helps move Canadian clean technologies forward, readying them for growth and export markets. With a portfolio of companies under management valued at more than $2 billion, SDTC is demonstrating that cleantech is a driver of jobs, productivity and economic prosperity.

SDTC operates two funds aimed at the development and demonstration of innovative technological solutions. The SD Tech Fund™ supports projects that address © climate change, air quality, clean water, and clean soil. The NextGen Biofuels Fund™ supports the establishment of first-of-kind large demonstration-scale facilities for the production of next-generation renewable fuels.

SDTC works with the private sector, the financial sector and all levels of government to meet the Government of Canada’s commitment to create a healthy environment and a high quality of life for all Canadians. SDTC operates as a not-for-profit corporation.

Figure 1: SDTC Total Portfolio Value Across Canada

$542M

$454M

$62M

$20M

$708M

$353M

$1M

$5M

$8M $54M

$454M

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