Canada & Ontario Invest $16M to Slash Energy Costs for Food Processor

The governments of Canada and the province of Ontario are investing over $16 million in energy cost-saving projects to enhance energy efficiency within the food processing sector. This strategic move, facilitated through the Sustainable Canadian Agricultural Partnership (Sustainable CAP), aims to empower 30 food processors to cut costs, become more competitive, and bolster sustainability.

The funding provided under the Agri-Food Energy Cost Savings Initiative is a strategic commitment by both government levels to support initiatives prioritizing energy efficiency within the food processing industry. By investing in new technologies, equipment, and facility modifications, the initiative aims to deliver a significant impact, contributing to an estimated $3 million in annual operational cost savings for the recipient businesses.

Under the Agri-Food Energy Cost Savings Initiative, eligible food processors stand to receive up to 20% cost-share funding for eligible costs, capped at $300,000 per business. The projects supported by this initiative are expected to be completed by March 31, 2025.

Several notable investments have already been made through this initiative, showcasing the diverse range of projects aimed at enhancing energy efficiency:

• R. Denninger Limited, Hamilton: $6,368.70 investment to acquire a new pressure washing system, reducing natural gas usage and operating costs.
• Front Road Cellars at Blueberry Hill, Norfolk County: Up to $16,819.61 for installing solar power systems, high-efficiency heat pumps, and radiant heat sources to enhance operational efficiency and sustainability.
• Marini Foods Limited, Toronto: Up to $165,000 to improve roofing and HVAC systems, thereby increasing overall energy efficiency.

This initiative was developed after extensive consultations with Ontario’s food processing industry, reflecting the government’s commitment to addressing industry-specific needs. It forms part of a comprehensive series of initiatives to support food processing in the province, including a $25 million commitment through the Agri-Tech Innovation Initiative, with applications opening on February 15, 2024.

Lawrence MacAulay, federal Minister of Agriculture and Agri-Food, emphasized the significance of this funding in strengthening the agri-food sector. “This new funding will help our food processors make their operations more sustainable and energy efficient while protecting their bottom line,” he stated.

Ontario Minister of Agriculture, Food and Rural Affairs Lisa Thompson highlighted the province’s commitment to creating a conducive environment for the growth of the food processing sector. “Through this Initiative and a host of other actions, we’re making significant progress in achieving the ambitious targets set out in our Grow Ontario Strategy,” she affirmed. This collaborative effort between federal, provincial, and territorial governments seeks to fortify the competitiveness, innovation, and resiliency of the agriculture, agri-food, and agri-based products sectors.