The Ontario Power Authority is developing two new  Clean Energy Standard Offer Programs, one for natural gas-fired combined heat and power (CHPSOP), the other for “energy recovery” (ERSOP) from “by-products fuel” and “under utilized energy resources”.

These programs potentially offer exciting opportunities for Ontario’s industries. Consultation will be carried out over the next couple of months.

“By-products fuel” includes by-products from industrial, manufacturing and commercial processes. “Under-utilized energy resources “includes mechanical and thermal energy from such processes, that would not otherwise be used as an energy source.

Neither eligible fuel source includes renewable fuel, municipal solid waste, fossil fuel, peat or peat-derived products, or hazardous waste..

Key program elements of the CHPSOP:

1. 20-year contract term
2. Location eligibility requirements apply
3. Distribution connected
4. Did not generate electricity before August 18, 2005
5. No prior contracts
6. Not subject of an Impact Assessment submitted before execution of CHPSOP Contract, unless Impact Assessment was applied for before November 23, 2010
7. Project prioritization based on Useful Heat Output guarantees (above minimum 15 percent)

Key program elements of the ERSOP:

1. 20-year contract term
2. Location eligibility requirements apply
3. Distribution connected
4. Must use an Eligible Primary Energy Source for the production of Electricity and only supplement it with Eligible Supplementary Fuel
5. Did not generate electricity before August 18, 2005
6. Host facility must already be in existence