INNOV-R SME CALL FOR PROJECTS

CONTEXT

In November 2020, the Québec government announced its 2030 Plan for a Green Economy. With its framework policy of electrification and the fight against climate change, the government wants to make the fight against climate change a major lever for economic development and international influence. To this end, it will rely on the electrification of the economy, the development of other renewable energy resources, as well as the emergence of economic sectors of the future that create quality jobs. The INNOV-R PME measure is part of this vast initiative and aims for the emergence of innovative projects that will allow Québec to achieve its greenhouse gas (GHG) emissions reduction objectives more rapidly.

REDUCE GHG EMISSIONS IN QUÉBEC

The INNOV-R PME measure is made possible thanks to the Fonds d’électrification et de changements climatiques (FECC) and the sums are administered by the Ministère de l’Économie, de l’Innovation et de l’Énergie (MEIE). The aim of the measure is to support innovative industrial research projects with a high potential for reducing GHG emissions in Québec, the benefits of which will allow the province to achieve its medium and long-term reduction objectives and targets, notably for 2030, which is set at 37.5% below the 1990 level.

The INNOV-R PME measure is deployed by the Regroupements sectoriels de recherche industrielle (RSRI), which act as intermediation and financing organizations for collaborative research. Through their mandate, they promote knowledge transfer and the appropriation of innovation by companies in different key sectors of the economy. The seven (7) RSRIs involved in the deployment of the measure are identified in Appendix A of the guide.

OBJECTIVES

ENCOURAGE the emergence of innovative technologies and practices that will allow Québec to progress more quickly towards its GHG emissions reduction objectives;

PROMOTE the implementation of new technologies that will help reduce GHG emissions;

MOBILIZE businesses around collaborative innovation projects aimed at discovering solutions to reduce GHG emissions;

SUPPORT the development of intellectual property related to new GHG reduction technologies;

STRENGTHEN the adoption of clean technologies by businesses;

STIMULATE investments in innovation focused on reducing GHG emissions.

ELIGIBLE PROJECTS

Projects eligible for the INNOV-R PME measure must:

Demonstrate a high potential for reducing GHG emissions in Québec;
At a minimum, a potential of 100,000 tonnes of CO₂ reduced or avoided during the first 10ten (10) years after the commercialization of the product, technology or innovation;
Be submitted by an SME established in Québec and carrying out internal production or R&D activities there;
Be carried out in collaboration with another Québec company or an eligible recipient environment;
Relate to the development of a new product or a new process or to the significant improvement of an existing product or process;
Involve a necessary level of innovation, that is to say that the product or process must present a decisive advantage compared to existing solutions on the market and compared to the sector of activity at national or international level;
Involve a technological or business risk or uncertainty for the SME;
Demonstrate commercial potential or significant deployment potential when the product or process is intended for sale;
Be of a one-off nature.

FINANCING PARAMETERS

The financing parameters of the projects submitted as part of the INNOV-R PME measure are presented in the table below.

Table: Financing parameters of the INNOV-R PME measure

Parameters	Condition	Details
Québec SME	At least one SME as applicant	Several SMEs can submit a project, the grant will be paid to the SME submitting the project only.
Québec company with 250 employees or more (optional)	One or more, as partner	The grant will be paid to SMEs submitting the project. The grant cannot be used to support expenses incurred by this type of partner, although its contributions are eligible.
Public organization (optional)	One or more, as a partner (maximum 10% of total expenses)	The grant will be paid to the SME submitting the project. The grant cannot be used to support expenses incurred by this type of partner. Only in-kind contributions are eligible for this type of partner.⁴
Public research institutions (optional)	Yes, as 3rd partner	The grant is paid to the SME submitting the project. The grant can be used to support IRPQ expenses.
Enterprise outside Québec (optional)	Yes, as 3rd partner	The grant will be paid to the SME submitting the project. Except in exceptional circumstances⁵, the grant cannot be used to support expenses incurred by this type of partner, although their contributions are eligible.
INNOV-R PME aid rate	Maximum 50% of eligible expenses	N/A
Private funding	At least 50% of eligible expenses	The SME submitting the project must contribute at least 20% of eligible expenses.
Duration of projects	2 years maximum	N/A
Funding INNOV-R PME	$450,000 maximum	RSRI management fees covered by INNOV-R SME are included in the funding.

Note: The financial partners of a project approve a single budget presenting all the activities. Thus, matching an already funded project with the addition of new activities funded by the RSRI is not in accordance with the standards of the measure. Furthermore, the co-financing sources identified must be free of existing commitments.

⁴An in-kind expense is eligible if it is auditable, essential to the project and dedicated specifically to the project. For example, the cost of releasing an employee to specifically test the technology.

⁵The grant cannot be used to support expenses incurred by this type of partner, although its contributions are eligible. It must be demonstrated that the expenses incurred outside Quebec are for activities whose expertise is not located in Quebec and for which the international company is the only one to hold.

CALL FOR PROJECTS TIMELINE

Launch of the call for projects: February 11, 2025
Deadline for submitting the letter of intent: March 20, 2025

An analysis of the letter of intent will be done. Financial statements are requested when filing the letter of intent. A verification of the eligibility criteria of section 4.1 and 4.2 of the guide will be done. In addition, the financial statements will be evaluated by an external evaluator who will issue us a recommendation regarding the solvency of the company. A response will be sent to you on April 4, 2025, if your project is approved you will receive the detailed application form.

Support for the GHG portion will be offered later for detailed applications only, the letter of intent does not require extensive calculations.