Heavy Oil Consumption Reduction Program (Quebec, Canada)

From Open Energy Information

Last modified on February 12, 2015.

EZFeed Policy

Place Quebec

Applies to States or Provinces Quebec Quebec
Name Heavy Oil Consumption Reduction Program (Quebec, Canada)
Policy Category Financial Incentive
Policy Type Rebate Program
Affected Technologies Natural Gas, Solar Photovoltaics
Active Policy No
Implementing Sector State/Province

Funding Source Government of Quebec

Maximum Incentive $5 million per site

Primary Website http://www.mddelcc.gouv.qc.ca/changements/plan_action/mesures/energie-en.htm

Last Review 2015-01-09
Last Substantive Modification
to Summary


This program helps heavy oil consumers move toward sustainable development while improving their competitive position by reducing their consumption. Financial assistance is offered to carry out various analyses as well as implement energy efficient measures relating to heavy fuel oil or to switch to other forms of energy containing fewer pollutants, such as natural gas, forest biomass and electricity. This program is financed by the Green Fund and falls under Action 1 of the 2006-2012 Climate Change Action Plan.

The program is divided into 5 sections, i.e. four areas of intervention. Depending on the specific needs or nature of the project, the applicant may opt for one or more component of the program.

Component A – Energy efficiency and renewable energy This component aims to reduce the consumption of heavy oil through the implementation of energy efficient measures. Process rejects used for energy production and renewable energy development are also eligible insofar as they pertain to measures in which the applicant directly uses the recovered or produced energy (self-sustaining production). This component now offers an analysis segment and an implementation assistance segment.

Component B – Switching to forest biomass This section aims at encouraging facilities that use heavy fuel oil to switch to residual forest biomass (excluding sawdust, shavings and bark) as their energy source by means of a twofold approach: analysis and implementation.

Component C – Switching to natural gas This component encourages facilities using heavy oil as their energy source to switch to natural gas. The approach includes analysis, natural gas connection assistance for new users, assistance for retrofitting other fuel sources to natural gas and assistance for promoting customer loyalty among natural gas users.

Component D – Switching to other fuels This component focuses on implementing measures to replace heavy oil with other solid, liquid and gaseous fuels other than those provided for under components B and C and directly used in heat production. Fossil fuels (unless they are polluted or contaminated) and fuels that can be recycled are excluded. This component features an analysis segment and implementation assistance segment.

Component E - Switching to electricity This component encourages thermal energy production facilities using heavy oil to switch to facilities that use electricity as an energy source. This component also features an analysis segment and an implementation assistance segment.

The financial assistance granted by the Department for implementation work or work carried out to switch to another energy source for each component under the program is limited to the least of the following amounts:

- assistance required to bring back the return on investment to one year; - $40 per ton of reduced GHG emissions per year and per project for the duration of the applicant’s commitment which may not exceed 10 years; - 75% of total implementation costs; - maximum of $5M per project (unlimited per site); - the original amount requested by the applicant.

The financial assistance granted by the Department can be combined with assistance from complementary programs offered by partner organizations (government ministries and agencies). However, the cumulative amount of financial contributions received may not exceed 75% of the allowable costs as the applicant must also contribute a minimum of 25% to these costs.

Policy Contact

Department Agence de l’efficacité énergétique
Division Ministère des Ressources naturelles et de la Faune
Address 5700, 4e Avenue Ouest, B 406
Place Québec, QB, Canada
Zip/Postal Code G1H 6R1
Phone 418-627-6379
Fax 418-643-5828
Email aee@aee.gouv.qc.ca