2006 SDTC Annual Report - Sustainable Development Technology

2006 ANNUAL REPORT
Building the Clean Tech Economy
SDTC acts as the primary catalyst in building a sustainable development technology infrastructure in Canada
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1. Average SDTC contribution .................................................... 28 %
2. Leveraged dollars from private sector ............................... 59 %
3. Contributions from governments and academia ........... 13 %
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Funding Snapshot*
Funds allocated to date
$ 238 million
Dollars leveraged from industry
Dollars leveraged from other funders
Total SDTC portfolio value
$ 499 million
$ 109 million
$ 846 million
* For all approved funding rounds as of December 31, 2006
SDTC makes non repayable contributions to project consortia,
normally led by a member of a technology’s supply chain:
• Academics and Researchers
• Technology Developers
• Manufacturers
• Distributors
• Retailers
• Industrial and Commercial End Users
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Funding by Economic Sector*
Economic
Percentage of Current
Sector
Funded Projects Investment
1. Energy Exploration and Production ......27 %............... $63,343,310
2. Power Generation .....................................19 %............... $45,830,642
3. Energy Utilization......................................22 %............... $53,429,717
4. Transportation...........................................14 %............... $32,405,687
5. Agriculture ...................................................4 %..................$9,633,904
6. Forestry, Wood Products, ...........................7 %..............$16,437,021
and Pulp and Paper Products
7. Waste Management ...................................7 %............... $17,210,049
* For all approved funding rounds as of December 31, 2006
Environmental Benefits
• 84% of SDTC funded projects have co-benefits (i.e. benefits in more than one area)
• 82% have clean air benefits
• 24% have clean water benefits
• 22% have clean land benefits
• Combined projected GHG emissions reduction by 2012: 12.6 megatonnes*
*See “Performance vs. Objectives” on p. 17 for an explanation of this figure.
SDTC supported projects provide solutions
for major economic sectors in Canada
Photo credits (this page):
Mike Kotelko, Highmark Renewables Inc.,
North Island Film Commission
9 Rounds of Funding Since 2002
1,249 Funding Applications Received Since First Round in April 2002
3,500 Organizations Involved in Applications
$2.6 billion in Total Funds Requested to Date
10 Projects Completed
Sustainable Development Technology Canada is a not-for-profit Foundation established by the Government
of Canada in 2001.  It manages a $550 million fund to help Canadian entrepreneurs develop and demonstrate
clean technology solutions:  products and processes that contribute to clean air, clean water and clean land, that
arrest climate change and improve the productivity, profitability and global competitiveness of Canadian industry.
SDTC helps bring new technologies to market by supporting them through the critical stages of development
and demonstration that fall between research and commercialization, which the private sector does not fund
because the technological and market risks are too great.
SDTC’s work goes beyond funding.  The Foundation helps
technology developers strengthen their entrepreneurial
skills and business cases so they can pursue success in the
marketplace after their projects are completed.  SDTC forges
connections between the companies it supports and
private sector financiers, institutions and individuals.  This provides funded technologies with access to
downstream investment, increasing opportunities for market entry and for the realization of environmental and
economic benefits.  Through its extensive industry networks, SDTC helps identify areas in which Canada can
demonstrate clean technology leadership.
SDTC at a Glance
107 Technologies in Development and Demonstration
Report Contents
SDTC reports on specific aspects of its performance
and future plans in this annual report and two
supplements: the Supplement to the Annual Report
and the Corporate Plan – Executive Summary.
All are available online at www.sdtc.ca. Hard copies
may be obtained on request.
About SDTC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-9
The Year in Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Message from the Chairman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Message from the President and CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Performance versus Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16-19
Auditor’s Report and Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21-29
Board of Directors and Member Council . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
SDTC Team and Contact information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
What does the clean tech economy look like?
It looks like today’s economy. Only more efficient. More diverse.
More competitive. Healthier for people and the world they live in.
And richer in opportunities for success in the global marketplace.
Developing the Future
Clean technology is about more than reducing environmental impacts.  It’s about evolving some of
the ways Canadian enterprises practice their business.  It’s about capitalizing on industrial synergies
and building new infrastructures that offset environmental impacts and promote economic
development.  It’s about fulfilling the goals of the country’s productivity agenda to stimulate
investment, competitiveness and growth.
SDTC is the market-maker in clean technology.  In 2006, we continued to identify novel
solutions with the power to transform the business landscape in environmentally progressive and
commercially viable ways.  We continued to support technologies through their evolutionary phases,
applying rigorous due diligence to strengthen their potential for commercial success.  Through the
year we allocated funds to 35 additional projects of promise.  Today our portfolio extends across the
country’s provinces and territories, engaging all of Canada’s major economic sectors.
This breadth gives SDTC a unique view of Canada’s clean tech horizon.  It allows us to see and act on
opportunities for collaboration that might otherwise go unnoticed.  The byproduct produced by one
SDTC funded technology may, for example, be a valuable ingredient in the solution of another.  We
help bring the players together to create synergies and realize mutual benefits.
One of the chief economic benefits of clean technology is increased productivity.  By enhancing the
conventional assets today’s industries depend on, clean technologies allow companies to reduce
energy consumption and costs, maintaining established production levels with significantly lower
inputs and input-related costs.
Canada must direct its clean tech efforts and investments strategically to realize such advantages.  To
date, SDTC has worked with partners in industry, government and academia to develop in-depth SD
Business Cases™ ( www.sdtc.ca/en/knowledge/business_case.htm ) that spell out the needs and
potential in four of Canada’s key industry subsectors.  Combining comprehensive stakeholder input
with objective SDTC analysis, the SD Business Case™ presents an industry led vision of Canada’s
future potential and investment opportunities in those sectors.  As the following pages detail, these
studies represent critical roadmaps to guide SDTC, Canadian companies and policy makers forward in
establishing a bona fide clean tech economy.
SDTC 2006 AR Homegrown Solutions
Canada stands to be a world leader in the
production of next generation renewable fuels
[ BIOX ]
To date, biofuel production has been limited
due to the single feedstock approach and long
transportation distances.
BIOX Canada Limited is demonstrating a
technology which can use a multitude of
feedstocks (recycled cooking oils, animal
tallows and fats, and seed oils) into biodiesel
at atmospheric pressure and near-ambient
temperatures thus overcoming the primary
problems today.  The BIOX process works faster
than competing processes and utilizes low value
waste oils which should reduce production costs
and make biodiesel competitive with petroleum
diesel.
BIOX does not see itself as a competitor with
conventional oil and gas but rather as a valued
supplier.  The company intends to produce
biofuels that satisfy expectations for quality
and consistency while meeting the economic
demands of the transportation sector.  With
support from SDTC, BIOX has built a 67‑million
litre per year facility to demonstrate its versatile
technology.
Bioproducts and biofuel processes are remarkable for their versatility.  Derived from a wide variety of
feedstocks (everything from agricultural crops and crop residues to animal tallows, forestry byproducts
and urban waste), they can be used to generate heat and electricity, or to produce chemicals and
refined transportation fuels.  Pure biodiesel derived from seed oils, for example, can reduce GHGs by
63 percent compared to conventional fuels, and by 90 percent when derived from animal fat. 
The emission reductions from biofuels will be proportionately decreased depending on the extent
of blending.
Canada has an abundance of biomass resources.  This is good news given the country’s goal, under the
Renewable Fuels Standard, to ensure that five percent of the content of gasoline-based transportation
fuel be renewable by 2010, and two percent of the content of diesel-based transportation fuel be
renewable by 2012.
An important distinction is to produce these biofuels from cellulosic sources using emerging second
generation technologies which use less energy for irrigating and fertilizing thereby providing real
environmental benefits. Also, these cellulosic feedstocks are not used for food, removing them from
the food versus fuel debate, unlike the first generation or starch based processes.
Some 30 percent of all submissions received by SDTC pertain to biofuels.  The Foundation is committed
to supporting technologies that leverage Canada’s abundance of inexpensive feedstocks and provide
lifecycle environmental benefits.
This abundance of biomass resources combined with the large number of emerging technologies
makes biofuels and bioproducts a potential area of excellence for Canada.  The SD Business
CaseTM :  Renewable Fuel – Biofuels identifies near and longer-term priorities for this sector.
Canada is starting to see the emergence of a commercial biofuels market that stands to play a big part
in the clean tech economy.  Propelling the development of technologies that bring down costs and
contribute to the establishment of an economically competitive infrastructure are some of the ways
SDTC is helping build that economy today.
Biofuels Snapshot
Percentage of SDTC funding invested in biofuels projects
SDTC-funded biofuels projects
SDTC funding allocated to biofuels projects
Total biofuels portfolio project value
Building the clean tech economy
28%
27
$66 million
$234 million
Biofuels
“By developing the technology to capitalize on the full range of feedstocks available in Canada, as a country we can obtain
a competitive advantage and become an exporter of biofuels rather than having to import them to satisfy upcoming
renewable fuels standards.  Ultimately, we believe our solution isn’t just a technology for Canada.  It’s one for the world.”
Scott Lewis, Vice President
BIOX Canada Ltd.
SDTC 2006 AR Cutting Emissions in Half
Clean approaches to fossil-fuel extraction stand
to yield greater productivity and higher returns
Canada is one of the world’s largest producers of oil, with the second largest reserves on the
planet.  As global demand continues to grow, fossil fuels will continue to be a mainstay of the
country’s economy.
[ N-Solv ]
Alberta’s oil sands are among the world’s most
coveted resources.  Yet conventional processes to
extract bitumen from the sands, such as SAGD
(steam assisted gravity drainage), are expensive,
energy-intensive, and consume massive
quantities of water.
Picking up where his father left off in the 1980s,
N-Solv’s John Nenniger has led the development
of a solvent-based extraction alternative that
consumes little water and uses just 15 percent of
the energy demanded for SAGD.  N-Solv extracts
bitumen with much less environmental impact
while producing higher yields of higher grade
bitumen.  While no one technology is expected
to meet extraction needs throughout the entire
oil sands, N-Solv’s technology offers significant
economic and environmental advantages over
SAGD particularly for new sites with suitable
reservoir characterisitics. 
Today, with funding from SDTC, N-Solv
Corporation is demonstrating a 2,000-barrelsof-oil-per-day plant for in-situ extraction of
bitumen from oil sands.  The process reduces
energy costs by 90 percent and greenhouse gas
emissions by 80 percent.  Nenniger suggests
that on a $65 barrel of oil, N-Solv’s cleaner,
more efficient process could potentially boost
the profit margin from $2 to $10, a compelling
incentive to reduce emissions.
While attention tends to focus on minimizing the environmental impact of using fossil fuels,
improving fossil-fuel extraction processes could have significant environmental benefits.  According
to the Cleaner Hydrocarbon Technology Futures Group, emissions-reduction technologies could cut
the greenhouse gases generated by today’s extraction processes nearly in half.  Given a business as
usual growth rate, this would translate to emission reductions from 95 megatonnes to 45 at 2020’s
projected production levels. 
In the SD Business Case™:  Clean Conventional Fuel – Oil and Gas, published in 2006, SDTC looked
at the opportunities for Canada to reduce emissions and protect the country’s air, water and land by
utilizing clean technologies in the exploration and production of oil and gas. 
The SD Business Case™ examined four areas of technology application:  energy efficiency; enhanced
production; carbon dioxide (CO2) capture, transport and storage; and large-scale hydrogen
production.  It determined investment priorities for clean tech development and demonstration
projects based on industry input and SDTC analysis.
Energy- and eco-efficient technologies that conserve resources and cut costs have the greatest
near‑term potential, as they are the most mature today and face the fewest barriers to market
entry.  Such technologies help boost productivity while delivering environmental benefits.  They make
sense in terms of both the bottom line and the big picture.  A case in point is the N‑Solv example
cited on these pages, which not only reduces the energy requirements (and therefore expense) for
extracting bitumen from Alberta’s oil sands, but also reduces water consumption, addressing a critical
natural resource issue in the region.
SDTC’s vision of the clean tech economy is one in which a healthy environment goes hand in hand
with world class industrial competitiveness.  That’s the clean tech economy the Foundation is seeking
to help build.
Clean Conventional Fuels Snapshot
Percentage of SDTC funding invested in clean conventional fuels projects
SDTC-funded clean conventional fuels projects
SDTC funding allocated to clean conventional fuels projects
Total clean conventional fuels portfolio project value
Building the clean tech economy
10%
6
$25 million
$102 million
Oil and Gas
“The oil and gas industry is cautious.  Companies want to know that technologies have worked before they risk deploying
them.  That demands full-scale, in situ demonstrations, which for many entrepreneurs can be a challenge.  SDTC has been
an enormous help in making it possible for us to show the industry how N-Solv technology works.”
John Nenniger, CEO
N-Solv Corporation
SDTC 2006 AR The Energy Around Us
Canada is surrounded by a wealth
of alternative energy sources
[ Clean Current ]
With its extensive coastlines, Canada is an ideal
candidate for ocean-based power generation. 
Today, with support from SDTC, Clean Current
is demonstrating its ability to harness tidal
currents to generate electricity.  The company is
demonstrating Canada’s first free-stream tidal
power project 10 nautical miles southwest of
Victoria, BC.  The project marks the first sustained
field test of a new electricity-generating
technology in Canada’s harsh Pacific marine
environment, opening doors to capitalize on
the vast tidal energy resources along Canada’s
coastlines.  The potential is great.  Tides are
predictable, and a 5 km per hour tide offers
power equivalent to an 80 km per hour wind.
Unlike many other designs, Clean Current’s tidal
turbine has no exposed blades, presenting less
risk to marine life.  In fact, the demonstration
project is taking place on an ecological reserve
off the coast of Vancouver lsland.  Students
and faculty at Pearson College are eager to
see the diesel system that powers their island
replaced with Clean Current’s quieter, more
environmentally friendly and more efficient
technology.
Renewable electricity generation is considered a key component of the national strategy to reduce
greenhouse gas emissions and local pollutants.  One of its benefits, beyond its inherently ‘clean’ nature,
is that it comes from local sources, reducing the need for transmission over long distances from the
point of generation to points of use.  Yet the volume of production needs to be increased substantially if
its impact, in the coming years, is to be felt. 
Canada’s currently installed renewable electricity generation capacity, about 4,000 MW, adds up to less
than two percent of the overall generation mix.  It could be increased considerably, given that Canada
has an abundance of renewable electricity potential.  A key challenge is to integrate renewable power
into the existing grid.
Wind is becoming the dominant non-hydroelectric renewable energy form of power generation.  The
abundance of rural property in Canada with what are known as suitable wind ‘regimes’ means there
are many locations that can support electricity production.  The wind industry is currently focused on
getting wind turbines up and running as quickly as possible.  The number of installations is growing at
the rate of 35 percent annually.
Less-established forms of renewable electricity are also emerging, with the potential to displace
conventional fossil fuel generation methods.  Solar energy, stationary fuel cells, and biological sources
show great potential.  Based on this market landscape, the SD Business Case™ on Renewable
Electricity Generation published in 2005 identifies priority areas for investment, among them:
expanded feedstocks for bio-electricity, wind power grid integration hardware, bio-processing plant
scale-up solutions, wind turbine component scale-up offerings, and technologies that integrate solar
electrical facilities into the power grid.
Ocean energy is another area being explored.  SDTC was among the early advocates for establishing
an industry association for ocean energy, and helped bring together the founding stakeholders behind
OREG, the Ocean Renewable Energy Group.
Canada is fortunate to be surrounded by alternative sources of energy.  SDTC’s aim is to foster
the country’s ability to capitalize on that abundance and put it to effective use in the emerging
clean tech economy.
Renewable Power Generation Snapshot
Percentage of SDTC funding invested in renewable power generation projects
SDTC-funded renewable power generation projects
SDTC funding allocated to renewable power generation projects
Total renewable power generation portfolio project value
Building the clean tech economy
19%
16
$45 million
$145 million
Photo by Garry Fletcher, Marine Education Consulting, racerocks.com
Renewable Power Generation
“We have the ability to put the most efficient saltwater unit anywhere in the world.  Installation will always be a
challenge—time for installation is limited and specialized drilling rigs are required—however our equipment has been
designed for a long lifetime.  Our technology represents zero-emission power generation: zero hydrocarbons are associated
with the process, not even for turbine lubrication.  The energy gains are sizable and the environmental impact is modest.”
Glen Darou, President and CEO
Clean Current Power Systems Inc.
SDTC 2006 AR A Step-Wise Approach to the Hydrogen Economy
A practical outlook on realizing
the abundant potential of hydrogen
[ Sacré-Davey ]
Sacré-Davey Innovations is demonstrating
the feasibility of hydrogen recovery from
waste streams and its subsequent distribution
for fuel cell applications.  With SDTC support,
the company and its partners are capturing
hydrogen in a waste stream from a sodium
chlorate plant, separating and purifying it
through an industrial process to produce fuel
cell grade hydrogen.  This process is much less
energy intensive than traditional methods for
producing pure hydrogen such as electrolysis.
The full scope of the project is to develop and
demonstrate a hydrogen fuel refining, storage,
distribution and infrastructure program.  It
meets the storage and distribution challenges
of hydrogen in innovative ways: the project
team has developed lightweight, high-pressure
PowerCube™ units for storing hydrogen, and has
designed a gas distribution system fashioned
on what’s called “the milkman principle,” which
uses pickup trucks with cylinder mounted
PowerCube™ units as affordable hydrogen
transport vehicles.  These can be replenished
at local filling stations.  Pairing with Canada’s
first environmental car wash, the project team
has set up a hydrogen-powered operation that
re-circulates well water and uses the facility’s
exhaust to pre-warm wash water, conserving
and recycling energy and resources.  Also the
project team has struck an agreement with
BC Hydro to supply excess power to the local
hydro grid when the car wash is idle, further
demonstrating the efficiency and far-reaching
potential of clean tech thinking.
Hydrogen is the most abundant substance on earth, and has the highest energy content of
any known fuel.  To be used as an energy carrier or chemical feedstock, hydrogen must first be
separated from other elements (water and organic compounds) through electrolysis, gasification or
reforming.  The best feedstocks for hydrogen production are water and hydrocarbons (such as fossil
fuels and biomass) that have a high ratio of hydrogen-to-carbon.
Canada produces more hydrogen per capita than any country in the world, almost all of it from fossil
fuel sources.  While current production levels are in line with demand, national requirements are
expected to increase dramatically as fuel cells enter the transportation market.  This is both positive
and problematic, as using fossil fuels to create hydrogen presents sustainability concerns related to
greenhouse gas emissions and regional pollutants.
New sources of hydrogen production, from thermal catalytic reforming to electrolysis from renewable
sources, are beginning to emerge and Canada is in an ideal position to capitalize.  Yet progress cannot
be made in leaps.  Solid progress requires a step-wise approach, matching current production to
current applications and leveraging these to enable future applications and growth.
Within SDTC’s hydrogen portfolio are demonstration projects employing fuel cells in industrial
vehicles and forklifts, the first step toward proving hydrogen’s potential as a transportation fuel.  SDTC
has also funded the demonstration of a commercially viable grid-connected energy solution with
an integrated hydrogen-delivery system.  Each of these projects is helping move from specialized
industrial hydrogen production and use, proving out the necessary technologies in the process,
toward ultimately mainstream applications such as automotive uses and power generation.  The SD
Business CaseTM :  Renewable Fuel – Hydrogen assesses various production technologies with strong
potential for use as elements within the hydrogen energy system.
Recognizing there is much work to be done before hydrogen can be adopted as a cost-efficient,
commercially viable societal standard, the Foundation’s approach is to focus on funding and
supporting small-scale projects that can act as building blocks for larger infrastructural changes in
the future.
Hydrogen Snapshot
Percentage of SDTC funding invested in hydrogen production projects
SDTC-funded hydrogen production projects
SDTC funding allocated to hydrogen production projects
Total hydrogen production portfolio project value
Building the clean tech economy
10%
9
$24 million
$86 million
Hydrogen
“We are proving we can harvest small hydrogen and get it into the marketplace at a low capital cost.  If we can seed the
market with these technologies, as demand increases, we can effect a modular scale-up and distribution.  This type of
approach makes hydrogen mobile as a technology and an energy source, allowing it to reach even remote communities
with minimal infrastructure requirements.  That translates into serious infrastructure cost savings.  Fuel cell power makes
long-term sense for energy management.”
Chris Sacré, President and CEO
Sacré-Davey Innovations
SDTC 2006 AR The Year in Review
Highlights of SDTC’s ongoing efforts in 2006
to help build Canada’s clean tech economy
Building a Stronger
Foundation
SDTC has worked since its establishment
to operate accountably, transparently and
effectively.  Its focus on governance and the
responsible management of taxpayers’ dollars
were recognized in 2006 by the Auditor General
of Canada and by an independent research
firm as part of SDTC’s mandatory Interim
Evaluation.  The Interim Evaluation confirmed
the necessity of SDTC’s role in helping shape
Canada’s clean tech economy.  The Auditor
General’s report, prepared by the Commissioner of
the Environment and Sustainable Development
(CESD), examined SDTC’s operations and
management of its fund, and concluded that
the Foundation’s processes for selecting and
managing projects are sound.  Recommendations
made in both reports will be taken up by
SDTC as part of its commitment to continuous
improvement.
Growing the Portfolio
By the time it announced its ninth round of
funding, SDTC had more than three-quarters of
a billion dollars in technology solutions under
development in its portfolio.  The Foundation
continued throughout the year to balance its
portfolio, allocating funds to areas of focus.  As
always, SDTC continued to fund well-rounded,
market-oriented project consortia in 2006, with
89 per cent of our projects being led by small and
medium-sized enterprises.
10 Building the clean tech economy
Building Capacity
Building for the Future
The release of three new SD Business Cases™
(on Biofuels, Oil and Gas, and Hydrogen) was
a major achievement in 2006.  By presenting
objective, industry-informed views of clean
technology opportunities within Canada’s main
economic sectors, the business cases provide
decision makers and funders, including SDTC,
with comprehensive and actionable information
on where to focus policy initiatives and
investments in clean tech.  Consolidating multiple
viewpoints and extensive data, the business cases
are an important contribution to the country’s
clean tech knowledge base.
SDTC’s involvement in the clean tech sector was
reflected strongly within Canadian private-sector
investments.  Companies approved for funding
by SDTC attracted $156 million in venture capital
investment in 2006.  This is testament to the
Foundation’s position as the go-to-organization
for the development and demonstration phases
of clean technologies.  That position affords SDTC
a unique, high-level perspective on Canada’s
clean tech landscape, and therefore the ability
to identify opportunities for partnership and
collaboration among what would otherwise
be disparate players.  This strengthens the
country’s sustainable development technology
infrastructure.
Forging Connections
As part of the release of the SD Business Cases™,
SDTC held cross-country presentations to key
industry and government audiences.  Gaining
recognition as a centre of knowledge in clean
technology, the Foundation encountered new
opportunities to contribute to national policy
on environment-related issues.  Through
development of the business cases, ongoing
liaisons with the clean tech sector, ever‑stronger
provincial relationships and increased
connectivity with people across the country,
SDTC continued to establish an extensive and
well-linked network within the sustainable
development technology community.
Going the Next Step
SDTC was created to bridge the funding
gap between technology research and
commercialization, when technologies
are readied for market.  Going forward,
the Foundation will continue to work at
strengthening its ties with capital markets to
ensure that completed projects are received by
the investment community and have a path to
market.  While SDTC’s direct involvement comes
to an end at the conclusion of each project,
the Foundation’s aim is to see the associated
technologies adopted and put into use.  Only
then will their full economic and environmental
potential be realized.
Library of Parliament/Bibliothèque du Parlement-Roy Grogan
Accountability
“We saw good due diligence and real concern [by SDTC] that it spent the money wisely.”
Neil R.J. Maxwell, Principal
Office of the Auditor General of Canada
Reporting to the Standing Senate Committe On Energy, the Environment and Natural Resources
SDTC 2006 AR 11
For SDTC, 2006 was a year of progress and affirmation. The number of SDTC-funded projects
continued to grow while an independent audit validated the Foundation’s fundamental
“ ...astute, strategic
investments of public
money in development and
proposition that astute, strategic investments of public money in development and
demonstration projects will boost Canada’s clean technology capacity.
As a trailblazer for supporting the development of sustainable technology, SDTC
demonstration projects
recognizes it must exemplify the finest in governance and management practices. The Auditor
will boost Canada’s clean
General’s Commissioner of the Environment and Sustainable Development assessed SDTC’s
technology capacity.”
performance in terms of ‘value for money’ and concluded that the Foundation conducts its
business responsibly.
The audit also confirmed the merit of SDTC’s unique governance and business models.
By adhering to sound management principles, SDTC’s judicious funding approach will foster
the development of a clean technology infrastructure in this country. We welcomed all
recommendations and suggestions for improvement in last year’s audit and have implemented
or are in the process of implementing them.
Canada’s clean-tech community considers SDTC’s funding process to be particularly
rigorous. Last year, the Foundation took steps to streamline processes for applicants while
maintaining this high standard of project due diligence. Such thoroughness is essential if we are
to truly prepare technologies for success in the marketplace.
12 Building the clean tech economy
MESSAGE FROM THE CHAIRMAN
James M. Stanford
Private investors, who have an expectation on returns, expect a high standard of diligence on potential investments. SDTC invests only
in promising projects that have already attracted significant amounts of outside investment. Thanks to the thoroughness of our project-review
processes, every dollar of SDTC investment was matched by approximately $2.60 of outside money, 82 percent of which is from the private
sector. Last year, 35 projects earned funding from SDTC.
The Government of Canada recognizes that SDTC, by pursuing and fulfilling its mandate in an effective and efficient manner, helps
address Canadians’ concerns about the environment and the economy. This support was demonstrated in March 2007 when the federal
budget allocated $500 million in additional funding to SDTC.
I am pleased that recognition of SDTC continues to grow. Yet a more important measure of SDTC’s success is the steady growth of
Canada’s clean-technology infrastructure. Today, a collaborative network of private companies, educational institutions, venture capitalists and
researchers is in place to develop, implement and commercialize technologies that deliver environmental and economic benefits to Canadians.
The Foundation has achieved strong performance and recognition during 2006. This has been the result of the focus and significant
efforts of the people of the organization, for which the Board of Directors is very appreciative. I would also like to express my appreciation to
the members of the Board of Directors and the Member Council for their support and dedication to the success of the Foundation.
James M. Stanford, O.C.
Chairman of the Board of Directors
SDTC 2006 AR 13
Global competitiveness requires future-oriented thinking, a willingness to take risks, innovate
and then take action.  Nowhere is this more apparent than in the field of clean tech.  Right now,
regardless of the varying degree of concern over climate change, the race to develop new
“ Right now … the race to
develop new technologies to
increase productivity while
protecting our environment
technologies to increase productivity while protecting our environment can be seen throughout
the world.  And Canada and Canadian companies need to be at the forefront of this race.
With this in mind, in 2006 SDTC identified significant opportunities for increasing the
productivity and profitability of key market sectors in Canada.  This was done in concert with
our partners and stakeholders using a model developed by SDTC, the Sustainable Technology
can be seen throughout
Asset Roadmap (STAR™).  When applied to a particular market sector, the STAR™ model
the world. And Canada and
produces a report that lays out the rationale on how to focus investments.  We call this the
Canadian companies need
SD Business Case™. 
to be at the forefront of
These SD Business Cases™ highlight the importance of partnership:  the vision of
future success is defined by industry;  the capacity of Canada to meet these needs is defined
this race.”
by entrepreneurs and researchers;  and, the viability of these options is defined by numerous
experts and SDTC employees.  The relevance and quality of these Business Cases is only possible
through this collaborative approach and has enabled SDTC to gain considerable knowledge. 
Our first SD Business Case™ for Renewable Electricity Generation was released in
2005.  In 2006 we delivered three more:  Clean Conventional Fuel – Oil and Gas;  Renewable
Fuel – Biofuels;  and, Renewable Fuel – Hydrogen.  While there are many critical areas for
improved economic and environmental performance, the three produced this year were chosen
deliberately.  We concentrated on areas of strength and excellence for the economy.  One is
an established area – the oil and gas industry – and the other two are areas where Canada
is recognized as playing a leadership role, albeit at risk unless more effort is put into them. 
The intent behind building the bio-based and hydrogen-based economies is to complement
14 Building the clean tech economy
MESSAGE FROM THE PRESIDENT AND CEO
Vicky J. Sharpe
existing economic sectors.  In doing so we aim to move Canada from a commodity-focused economy up the value chain where a range of
higher‑valued products and services will strengthen the economy.  This year’s annual report illustrates this concept at a general level and
then gives a specific example for each of the four business case reports. 
In developing clean technologies, SDTC is an integral part of the technology “push” side of the equation.  However, when you have
“push” with out sufficient market “pull”, the results are sub-optimal.  Therefore, SDTC works diligently with its downstream partners in the
private sector to decrease technology and market risk, create awareness and generate demand for the emerging technologies. 
Another aspect where SDTC creates market “pull” is on the policy side through the SD Business Cases™, where we examine the
primary hurdles to market uptake identified by industry and experts.  Many of these hurdles are not technological and can be addressed
using creative policies which are developed and set by both provincial and federal governments.  Ways of mobilizing markets include utilizing
an array of tax incentives, regulations, codes and standards.  SDTC has been able to draw upon its findings in the Business Cases to inform
discussions with governments on opportunities to enhance market uptake driven by smart regulation.  Here again, the partnership model is
demonstrated to improve the success rate for clean technologies. 
The SD Business Cases™ have proven to be a valuable tool for many of us in the clean tech community.  I would like to express my
appreciation to all of the players who helped to produce the SD Business Cases™ highlighted in this year’s Annual Report. 
For SDTC, 2006 was a banner year.  We continued the high-quality delivery of the funding allocation process, combining it with
strong performance in all the evaluation and audit activities and the acceleration of our Business Case work.  The SDTC team has grown and
I know every single person has worked hard to contribute to the rapid evolution of both clean tech and SDTC.  For this, I am most grateful. 
Vicky J.  Sharpe
President and CEO
SDTC 2006 AR 15
Performance versus Objectives
SDTC measures its efforts to help build Canada’s clean tech economy against a number of specific objectives, some
mandated by the Foundation’s Funding Agreement and others chosen by SDTC itself as relevant indicators of progress.
The results achieved to date affirm the potential of clean technologies to deliver environmental benefits, stimulate economic activity and realize
competitive advantages for Canadian industries in the world economy.
SDTC consistently met or exceeded its objectives in 2006, as it has done every year since its inception.
Climate Change
Reducing GHG Emissions and Contributing
to Clean Air, Clean Water and Clean Land
One of SDTC’s main objectives is to support technologies that tackle climate change
by reducing greenhouse gas (GHG) emissions, and that contribute to clean air, clean
water and clean land.  SDTC called for submissions of clean water and clean land
technology projects for the first time in 2005, after a broadening of its mandate.
Clean Air
SDTC is especially interested in supporting technologies with co-benefits.  These are
environmental benefits in more than one of the areas mentioned above.  Since it
was founded, SDTC has been required to ensure that 80 percent of its funded projects
relate to climate change and 20 percent to clean air.  By supporting technologies with
co-benefits, the Foundation’s projects demonstrates a higher impact in both areas, as
84 percent of SDTC projects have co-benefits.
Classification of Environmental Impacts for
35 Projects to Which SDTC Allocated Funding in 2006
% of Projects Classified by Primary Benefit
Climate Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 %
Clean Air. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 %
Clean Water and Soil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 %
Clean Land
Classification of Environmental Impacts for 107 Projects to
Which SDTC Has Allocated Funding Since Inception
% of Projects Classified by Primary Benefit
Climate Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 %
Clean Air. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 %
Clean Water and Soil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 %
16 Building the clean tech economy
How SDTC forcasts GHG emissions reductions
GHG emission reduction projections are, by their nature, forward-looking statements.  They involve risks and uncertainties that could cause actual
results to differ materially from those contemplated.  SDTC believes it has a reasonable basis for making such forward-looking statements by adhering
to the following practices:
•
•
•
SDTC requires every applicant to estimate future GHG emission reductions using a prescribed methodology
based on accepted ISO and IPCC practices.
SDTC reviews the reasonableness of projected GHG emissions reductions reported by applicants.  As new information
is reported the projections are adjusted and projects on hold are excluded.
SDTC applies a 90 percent discount rate to the projections to account for potential technology failures and market uncertainties.
SDTC acknowledges that undue reliance should not be placed on forward-looking statements.
GHG Reduction
Estimated total annual GHG reduction in 2012
12.6 Megatonnes
Attributable to all 107 projects funded by SDTC since inception (90 percent discounted)*
*SDTC launched its first round of funding in April 2002 and approved its first projects in November of that year.
Measuring to 2012
In past annual reports, SDTC’s GHG emission reduction projections were calculated to the year 2010.  The Foundation felt that this was too near-term
a target for results to take hold and proposed extending the timeframe to 2012.  The change was supported by the Commissioner of the Environment
and Sustainable Development, and was effected in 2006.
Protecting Investments
SDTC ensures that its funding, averaged across its entire portfolio, represents no more than 33 percent of total project value by leveraging project
consortia and private sector contributions.  In reality, SDTC has exceeded this objective by securing and leveraging private and public sector support so
that SDTC’s overall investment level for the portfolio is 28 percent. 
Projects Funded by SDTC in 2006
Projects Funded by SDTC Since Inception
35 Projects with a Total Value of $255 Million
107 Projects with a Total Value of $846 Million
SDTC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 %
$76 million
SDTC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 %
$238 million
Governments and Academia. . . . . 8 %
$22 million
Governments and Academia. . . . 13 %
$109 million
Private Sector . . . . . . . . . . . . . . . . . . . 62 %
$157 million
Private Sector . . . . . . . . . . . . . . . . . . . 59 %
$499 million
SDTC creates and contributes to opportunities for the pursuit of shared priorities by involving in its projects other branches and levels of government,
including Canada’s provincial and territorial governments.
The Foundation will continue to seek an investment level of at least 66 percent from project participants across all projects so that for every dollar that
SDTC invests, it is matched by over two dollars of industry partner contributions.
SDTC 2006 AR 17
SDTC and Leveraged Funding for Total Portfolio
(for all approved funding as of December 31, 2006)
Year
2002
2003
2004
2005
2006
SDTC Investment
$ 6,949,249
$ 25,242,905
$ 48,008,036
$ 81,838,198
$ 76,251,942
Industry Leveraged
Funding
$ 12,483,998
$ 55,998,334
$ 106,565,980
$ 166,772,571
$ 157,143,740
Other Funding from
Government and Academia
$
7,103,201
$
12,292,893
$
32,409,599
$
35,380,420
$
21,482,869
Total Project
Value
$ 26,536,448
$ 93,534,132
$ 186,983,615
$ 283,991,190
$ 254,878,551
Round 10 2006B will be approved in 2007
Resonating With Private Sector Investors
In 2006, technologies supported by SDTC received a ringing vote of confidence from private markets.  Some $156 million in venture capital funding
went to 13 small and medium enterprises (SMEs) with projects funded by SDTC.  Most of this private clean technology investment was made into
companies at or nearing completion of their SDTC projects. 
Capacity Building
SMEs are driving innovation in the clean tech marketplace, a fact mirrored in SDTC’s portfolio: 89 percent of projects are SME led.  SDTC balances this
with the involvement in project consortia of larger organizations and potential customers to build the capacity of smaller entrepreneurs and create
the best chances for their technologies to reach the marketplace.
1
2
As Percentage
Number of Projects
1. SME Consortia..................................................................................... 24 %
2. SME Led with Large Consortium Member(s)................................. 35 %
3. SME Led with Large Potential Customer(s) in the Consortium... 30 %
4. Large Company Led Consortia............................................................ 6 %
5. Large Company Led with SME in Consortia...................................... 5 %
3
4
5
SDTC and Consortium Leveraged Funding by Economic Sector: Allocations in 2006
Sector
Energy Exploration and Production
Power Generation
Energy Utilization
Transportation
Agriculture
Forestry, Wood Products and Pulp & Paper Products
Waste Management
Total
18 Building the clean tech economy
SDTC funding
$ 21,454,790
$ 18,175,086
$ 15,509,977
$ 15,586,409
$ 1,248,126
$ 1,172,969
$ 3,104,585
$76,251,942
Consortium leveraged funding
$
62,322,394
$
37,874,554
$
31,854,423
$
34,501,691
$
2,738,874
$
2,425,481
$
6,909,192
$178,626,609
Total Project
$ 83,777,184
$ 56,049,640
$ 47,364,400
$ 50,088,100
$ 3,987,000
$ 3,598,450
$ 10,013,777
$254,878,551
Initial Applications Received
SDTC is required to issue one call for initial funding applications each year.  These
are referred to as statements of interest, or SOIs.  In reality, the demand throughout
industry to access development and demonstration funding is sufficiently significant
that SDTC has made a practice of issuing two calls for submissions each year.  It did
so again in 2006.
Statements of Interest
Total SOIs received in 2006
186
Round 9
Round 10
86
79
Total SOIs received since inception*
1,249
*Based on 10 calls for SOIs
Future Plans
In 2007, SDTC will issue two calls for submissions of applications (Statements of
Interest, or SOIs), one in January and one in August.  The Foundation will continue to
seek technologies relating to climate change, clean air, clean water and clean land,
with an emphasis on approaches that integrate multiple benefits. 
SDTC will continue building capacity within Canadian businesses and communities
through wide dissemination of the findings of the SD Business Cases, as well as
through conferences and SDTC conducted workshops.  Our Corporate Plan, which is
a complementary document to this Annual Report, provides details on our planned
upcoming activities (available at www.sdtc.ca).
SDTC Asset Allocations
SDTC invests in eligible securities according to the investment guidelines of its
Funding Agreement to meet the Foundation’s expected disbursements and expenses,
as shown below.
SDTC’s Grant Investment Portfolio of Eligible
Securities as of December 31, 2006
1
34
2
5
6
Rating
of Security
1. Government AAA
2. Government AA
3. Government A
4. Other AAA
5. Other AA
6. Other A
7. Money market funds
Percentage
of Portfolio
36%
20%
2%
6%
16%
16%
4%
Ratings
Maximums
No Limit
No Limit
No Limit
80% of portfolio
70% of portfolio
20% of portfolio
No Limit
7
SDTC 2006 AR 19
Canada is surrounded by sources of renewable energy.
Clean technologies have the potential to harness that abundance
for the benefit of all Canadians efficiently and with
minimal environmental impact.
20 Building the clean tech economy
Auditor’s Report
To the Members of Canada Foundation
for Sustainable Development Technology
We have audited the statement of financial position of Canada Foundation for Sustainable Development Technology
as at December 31, 2006 and the statements of operations and cash flows for the year then ended.  These financial
statements are the responsibility of the Foundation’s management.  Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with Canadian generally accepted auditing standards.  Those standards
require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are
free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material respects, the financial position of the
Foundation as at December 31, 2006 and the results of its operations and its cash flows for the year then ended in
accordance with Canadian generally accepted accounting principles.  As required by the Canada Corporations Act, we
report that, in our opinion, these principles have been applied on a basis consistent with that of the preceding year.
Chartered Accountants
Ottawa, Canada
February 20, 2007
SDTC 2006 AR 21
Statement of Financial Position
December 31, 2006, with comparative figures for 2005
20062005
Assets
Current assets:
Cash and cash equivalents
$
799,379
$
2,272,052
Goods and services tax refund receivable
69,418
67,052
Prepaid expenses
119,900
69,489
988,6972,408,593
Investments (note 2)
522,446,591
541,059,847
Capital assets (note 3)
633,115
275,235
$524,068,403
$543,743,675
$
$
Liabilities and Deferred Contributions
Current liabilities:
Accounts payable and accrued liabilities
1,174,734
1,009,128
Deferred lease inducements
34,137
13,570
Deferred contributions:
Expenses of future periods (note 4)
522,859,532
542,720,977
Commitments (note 5)
See accompanying notes to financial statements.
22 Building the clean tech economy
$524,068,403
$543,743,675
Statement of Operations
Year ended December 31, 2006, with comparative figures for 2005
20062005
Revenue:
Amortization of deferred contributions (note 4)
$39,526,425$
19,231,969
Expenses:
Governance 585,179 542,088
Mandatory reporting 989,053 656,781
Project screening and evaluation
2,555,810
1,939,902
Project contracting and monitoring 587,298 455,105
Infrastructure development and outreach 820,760 688,364
Financial audit 23,800
46,594
General administration 899,854 563,059
Amortization of capital assets 234,310 236,402
Outsourced services 692,412 753,778
7,388,476 5,882,073
Project expenditures:
Project disbursements31,953,150 13,335,406
Technical and financial audit costs 184,799
14,490
Total project expenditures
32,137,94913,349,896
Total expenditures
Excess of revenue over expenses
39,526,425
$
–
$
19,231,969
–
See accompanying notes to financial statements.
SDTC 2006 AR 23
Statement of Cash Flows
Year ended December 31, 2006, with comparative figures for 2005
20062005
Cash provided by (used in):
Operating activities:
Excess of revenue over expenses
$
–
$
–
Items not involving cash:
Amortization of capital assets
234,310
236,402
Amortization of deferred lease inducements
(15,559)
(16,284)
Amortization of deferred contributions
(39,526,425)
(19,231,969)
Investment fund management fees paid
(546,609)
(516,601)
Changes in non-cash operating working capital items
112,829 182,481
(39,741,454)
(19,345,971)
Investing activities:
Purchase of capital assets
Sales (purchase) of investments - net
Lease inducements
Investment income
Financing activities:
Grant contribution
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Cash and cash equivalents, end of year
(592,190)
18,613,256
36,126
20,211,589 38,268,781
(78,551)
(196,975,815)
–
17,331,660
(179,722,706)
–
200,000,000
(1,472,673)931,323
2,272,052
$799,379
$2,272,052
The Foundation considers cash equivalents to be highly liquid investments with original maturities of three months or less,
held by the Foundation to fund current operations.
See accompanying notes to financial statements.
24 Building the clean tech economy
1,340,729
Notes to Financial Statements
Year ended December 31, 2006
Canada Foundation for Sustainable Development Technology – Fondation du Canada pour l’appui technologique au développement
durable (the “Foundation”) was established by Bill C-4 of the First Session of the thirty-seventh Parliament of Canada and was incorporated
under the Canada Corporations Act as a not-for-profit corporation on March 8, 2001. 
The Foundation is not an agent of Her Majesty, however is accountable to Parliament through the Ministry of Natural Resources
Canada.  Environment Canada and Industry Canada are the other key departments involved in the work of the Foundation.
The Foundation’s mandate, governance, operations, performance requirements, accountability and relationship to the Government of
Canada are defined in a Funding Agreement that is executed by the Foundation and the Ministers of both Natural Resources Canada and
Environment Canada.  In this way, the Foundation operates as a fully accountable instrument of the Government of Canada to help provide
timely development and demonstration of innovative technology solutions to the nationally important issues of climate change, clean air
and water and soil quality.
The Foundation’s purpose is to provide financial support to projects that develop, and demonstrate new technologies that have the
potential to advance sustainable development, including technologies to address climate change, clean air and water and soil quality
issues.  This support is provided to eligible recipients that have established partnerships which are comprised of a private sector commercial
corporation and one or more of:  a private sector commercial corporation, a university or college, a private sector research institute, a
not‑for‑profit corporation, or a federal or provincial crown corporation (or subsidiary) whose role is the provision of resources and/or
facilities to the consortium as a subcontractor.
The Foundation shall endeavour to ensure that there are funds available to allocate to new eligible projects up to the year ended December
31, 2010 and, where eligible projects warrant, to disburse funds in each year up to December 31, 2012.  With the exception of a reasonable
amount reserved for related project monitoring and evaluation, and for wind-up costs, the Foundation shall also endeavour to manage and
disburse the Funds in total by June 30, 2015.
During the year, no additional funding or donations were provided to the Foundation.
SDTC 2006 AR 25
Notes to Financial Statements
Year ended December 31, 2006
1. Significant accounting policies:
The financial statements have been prepared in accordance with Canadian generally accepted accounting principles and include the
following significant accounting policies:
(a)
Revenue recognition:
The Foundation follows the deferral method of accounting for contributions whereby contributions, including grants received
and interest earned on the invested amounts are deferred and amortized to revenue as expenses and project disbursements
are incurred.
(b) Capital assets:
Purchased capital assets are recorded at cost.  Amortization is provided on a straight-line basis over the assets’ estimated useful
lives using the following annual rates:
Asset
Computer hardware
Computer software
Office furniture and equipment
Leasehold improvements
(c)
Rate
30%
50%
20%
Term of lease
Investments:
Investments are recorded at cost plus accrued interest and unamortized premiums/discounts.  If the market value of investments
becomes lower than cost and this decline in value is considered to be other than temporary, the investments are written-down
to market value.
(d) Deferred lease inducements:
Deferred lease inducements are amortized on a straight-line basis over the term of the lease and are accounted for as a reduction
in rent expense.
(e)
Use of estimates:
The preparation of financial statements in conformity with Canadian generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses
during the period.  Actual results could differ from these estimates.  These estimates are reviewed annually and as adjustments become necessary, they are recognized in the financial statements in the period they become known.
26 Building the clean tech economy
Notes to Financial Statements
Year ended December 31, 2006
2. Investments:
20062005
Market Value Book ValueMarket Value Book Value
Money market funds
$ 23,062,183
$ 23,062,183
$ 24,540,787
$ 24,538,732
Fixed income securities 496,747,287 499,384,408 514,146,825 516,521,115
$519,809,470
$522,446,591
$538,687,612
$541,059,847
(a) Investment risk:
Investment in financial instruments renders the Foundation subject to investment risk.  This risk arises from changes in interest
rates if investment instruments are withdrawn prior to maturity or should market interest rates increase significantly over
those of the investments of the Foundation.  The Foundation invests in money market funds and fixed income securities, which
management considers being low risk.
(b) Concentration risk:
Concentration risk exists when a significant portion of the portfolio is invested in securities with similar characteristics or subject
to similar economic, political or other conditions.  Management believes that the diversification of the investments in money
market funds and fixed income securities described above does not represent excessive risk.
3. Capital assets:
Accumulated
CostAmortization
Computer hardware
$
Computer software
Office furniture and equipment
Leasehold improvements
160,279
$
165,608
408,146
378,135
$1,112,168
$
86,131
$
157,283
215,932
19,707
479,053
$
20062005
Net Book
Value
74,148
$
8,325
192,214
358,428
633,115
Net Book
Value
37,982
23,735
125,646
87,872
$275,235
During the year, capital assets were acquired at an aggregate cost of $592,190 (2005 - $78,551).
Cost and accumulated amortization at December 31, 2005 amounted to $835,190 and $559,955, respectively.
SDTC 2006 AR 27
Notes to Financial Statements
Year ended December 31, 2006
4.Deferred contributions - expenses of future periods:
Deferred contributions related to expenses of future periods represent the unspent balance in the Fund that is restricted for disbursement to
eligible sustainable development technology projects and operations of the Foundation, as defined in the Funding Agreement.  The change
in the deferred contributions balance is as follows:
2006
2005
Balance, beginning of year
$
542,720,977
$
345,137,887
Grant received
– 200,000,000
Investment income
20,211,589
17,331,660
562,932,566562,469,547
Less amount amortized as revenue
Less Investment fund Management fees
(39,526,425)
(546,609)
(40,073,034)
$522,859,532
(19,231,969)
(516,601)
(19,748,570)
$542,720,977
5.  Commitments:
During the year, the Foundation awarded grants for a maximum amount of $76.2 million (2005 - $86.7 million).  Total disbursements to
eligible recipients during the fiscal year were $32.0 million (2005 - $13.3 million).  Since incorporation, the Foundation has awarded grants
for a maximum of $238.3 million of which $56.9 million has been disbursed as of the end of the fiscal year.  The balance of the awarded grants
will be recorded as expense in subsequent years as funds are disbursed.
The Foundation has executed contracts for eligible projects through to 2011 in the amount of $52.5 million.  Also, it has commitments to
sublease office space as noted below.
Projects
Office
Total
2007
$ 25,098,133
$
447,779
$ 25,545,912
2008 19,002,612
447,779 19,450,391
2009 6,097,400
447,779 6,545,179
2010 1,133,816
444,779 1,578,595
2011 1,178,879
455,210 1,634,089
2012 and after
– 1,616,232 1,616,232
$52,510,840
$ 3,859,558
$56,370,398
28 Building the clean tech economy
Notes to Financial Statements
Year ended December 31, 2006
6.Fair value of financial instruments:
The fair values of cash and cash equivalents, goods and services tax refund receivable and accounts payable and accrued liabilities approximate
their carrying values due to the relatively short period to maturity.
The fair value of investments is disclosed in note 2.
7. Comparative figures:
Certain comparative figures have been reclassified to conform with the financial statement presentation adopted in the current year.  These
reclassifications had no effect on reported deferred contributions. 
Senior Management and Directors’ compensation*
In accordance with the Funding Agreement, SDTC Senior Management and Directors’ compensation for the fiscal year ending December 31, 2006,
including salary, allowances and other benefits was within the annual compensation ranges listed below.
Positions
Total Annual Compensation
Additional Performance Based Compensation
President & CEO
Senior Vice President
Vice Presidents
Directors & Senior Professionals
$220,000
$155,000
$140,000
$ 95,000
$ 0
$ 0
$ 0
$ 0
Chairman of the Board
Directors of the Board
$ 12,000 stipend**
$ 5,000 stipend**
–
–
–
–
$290,000
$185,000
$175,000
$120,000
–
–
–
–
$58,000
$25,000
$15,000
$ 6,000
* This information is not part of the audited statements.
** All Directors of the Board received a meeting fee of $550 per meeting.The Directors of the Board who sit on the Investment
and Project Review Committees received a meeting fee of $1,500 per committee meeting.
SDTC 2006 AR 29
Board of Directors
SDTC is governed by a Board of Directors reflecting the broad interests of the public, private and academic sectors in Canada. It is composed of 15 members, seven of whom are appointed
by the Government of Canada and eight of whom are appointed by Members of the Foundation. The Board has four committees: the Corporate Governance Committee, the Human
Resources Committee, the Project Review Committee, and the Audit and Grant Investment Committee.
Members of the Board are subject to conflict of interest guidelines requiring them to declare potential conflicts of interest and refrain from participating in any discussions regarding
matters that could give rise to a conflict of interest.
Name
Title
Board Committee
James M. Stanford, O.C
Chairman SDTC, President, Stanford Resource Management, Chairman of OPTI
Canada Ltd, Retired President and CEO, Petro-Canada
Consultant, Forest and Trade Policy
Chairman, President & Chief Executive Officer, Neurochem Inc.
Chairman of the Board, Chrysalix Energy Management Inc.
Corporate Director
Chairman
Emeritus Professor - Université de Montréal
Executive Vice President, Government Affairs & Business Development,
RBC Financial Group
President, University of Waterloo
Corporate Director, Brookfield Asset Management
Executive Director, Pollution Probe
Senior Vice President, Government and Corporate Affairs, Jacques Whitford Ltd.
Director
President, Parr Johnston Economic and Policy Consultants
President, Pollock Advisory and Management Services, and former Executive Director,
BIOCAP Canada and the Pembina Institute for Appropriate Development
Executive Vice President, Investments, Business Development Bank of Canada
CGC & HRC
HRC*
T.M. (Mike) Apsey, C.M.
Dr. Francesco Bellini, O.C., O.Q., G.U.
Michael J. Brown
Dr. Angus Bruneau, O.C.
Dr. Alain Caillé, FRSC
Charles S. Coffey, O.C.
Professor David Johnston, C.C.
David Kerr
Ken Ogilvie
Jane E. Pagel
Edythe A. Marcoux (Dee)
Dr. Elizabeth Parr-Johnston, D Litt.
David Pollock
Dr. Jacques Simoneau
HRC
PRC
PRC
AC
AC*
PRC
PRC*
CGC & AC
CGC* & AC
HRC
AC
Committee Chair *, Audit and Grant Investment Committee AC, Corporate Governance Committee CGC, Human Resources Committee HRC, Project Review Committee PRC
Member Council
The Members of the Foundation include 15 leaders who, together, provide an informed and representative perspective on, and contribution toward, the achievement of SDTC’s mission and
goals.  Originally, it was required that seven of those Members be appointed by the Government of Canada, with those seven appointing the remaining eight.  In future, as vacancies occur,
new appointments will be made by Members only.
Name
Title
Pierre Alvarez
Mary Louise Bernard
Carl Brothers, P.Eng.
James Knight
Hans R. Konow
Dr. Louis LaPierre
Manon Laporte
Rita M. Mirwald*
Mark Nantais
David Runnalls
Dr. Indira Samarasekera, O.C.**
Andrew T.B. Stuart
Katherine Trumper
Judith A. Whittick***
Dr. Joseph D. Wright
President, Canadian Association of Petroleum Producers
First Nation Band Councillor, Assembly of First Nations
General Manager, Frontier Power Systems Inc.
CEO, Federation of Canadian Municipalities
President and CEO, Canadian Electricity Association
Professor Emeritus, Université de Moncton
President and CEO, Enviro-Access Inc.
Senior Vice President, Corporate Services, Cameco Corporation
President, Canadian Vehicle Manufacturers’ Association
President and CEO, International Institute for Sustainable Development
Vice President, Research, University of British Columbia
Chairman, Sustainability Shift Inc.
Management Consultant, Full Circle Architecture
President and CEO, C-Core
Retired (April 2006) President and CEO, Pulp and Paper Research Institute of Canada
*Resigned in July 2005 ** Resigned in January 2005 ***Resigned in June 2006
30 Building the clean tech economy
SDTC Team
SDTC comprises a growing, dedicated team headquartered in Ottawa and supported by a large network of allies and stakeholders.
The following list includes all full time staff hired by SDTC as of December 31, 2006.
Name
Job Title
Vicky J. Sharpe
Maria Aubrey
Brad Brohman
Stephane Chartrand
Johanne Dery
John Dodd
Doug Feniak
Aida Filipovic-Ouimet
Kate Fleming
Steve Higgins
Duane F. Holmes
Alain Jegen
Sabrina Kalapati
Blaine Kennedy
Carole Lapensée
Andrée Mongeon
Ron Quick
Shelley Murdock
Guy Roy
Angela Saddington
Sheila Schindel
Shannon Sethuram
Shanaz Sigouin
Gertie Smedts-Baglin
Diana Smithson
Eric Terreau
Sailesh Thaker
Zoltan Tompa
Keith Watson
Rick Whittaker
Philip Wong
President and CEO
Senior Vice President, Operations
Director, Governance
Director, Finance
Applications Administrator
Manager, Screening and Evaluation (Conversion Processes and Energy Utilization)
Manager, Projects
Manager, Projects
Manager, Projects
Manager, Corporate Performance
Manager, Contracts
Manager, Screening and Evaluation (Enabling Technologies)
Administrative Assistant
Manager, Screening and Evaluation (Renewable Energy and Industrial Utilization)
Executive Assistant to the Senior Vice President, Operations
Director, Communications
Manager, Screening and Evaluation (Hydrogen and Transportation)
Executive Assistant to the Vice President, Industry and Stakeholder Relations
Applications Administrator
Governance and Operations Administrator
Manager, Applications
Accountant
Executive Assistant to the Vice President, Investments
Records Administrator
Executive Assistant to the President and CEO
Manager, Data and Records Management
Vice President, Industry and Stakeholder Relations
Manager, Applications
Manager, Screening and Evaluation (Water and Soil)
Vice President, Investments
Senior Manager, Projects and Quality Assurance
Sustainable Development Technology Canada
45 O’Connor Street, Suite 1850
Ottawa, ON K1P 1A4
www.sdtc.ca
Telephone: 613.234.6313 Fax: 613.234.0303
[email protected]
SDTC 2006 AR 31