Waste Heat Recovery Funding in Quebec: How It Supports the Energy Transition

Waste Heat Recovery Funding in Quebec: How It Supports the Energy Transition

Many Quebec businesses lose large amounts of usable energy through heat released from industrial processes, buildings, or equipment. Waste heat recovery funding in Quebec helps you study whether that lost heat can be captured and reused, cutting energy costs and greenhouse gas emissions at the same time. One of the province’s key tools for this is a feasibility study grant that covers most of the upfront analysis needed to move projects forward.

How Quebec’s Waste Heat Recovery Feasibility Study Funding Works

The Waste Heat Recovery — Stream 1: Feasibility Study program is designed to remove a common barrier to energy transition projects: the cost of technical and financial analysis before construction begins. Without a solid study, many waste heat projects never get approved or financed.

Here is how the program supports your business:

What the grant funds

This Quebec program provides funding to study an infrastructure project that would capture and distribute waste heat from one site to another use, such as space heating, process heating, or nearby buildings.

Key details include:

• Funding amount: Up to $150,000
• Cost coverage: Up to 75% of eligible study costs
• Purpose: Assess technical and financial feasibility of a waste heat recovery infrastructure project

Who can apply

You may be eligible if:

• You are planning a feasibility study for a waste heat recovery infrastructure project
• The study evaluates both technical viability and financial feasibility
• The study is required to apply later to the program’s infrastructure implementation stream (Stream 2)

Manufacturing plants, industrial facilities, and other high-energy-use operations are common applicants, especially where excess thermal energy is currently vented or dissipated.

Why this matters for the energy transition

Waste heat recovery plays a direct role in Quebec’s energy transition goals by:

• Reducing demand for new energy generation
• Lowering fossil fuel use for heating
• Improving overall energy efficiency in industrial and commercial sectors

By funding feasibility studies, the province helps de-risk projects early, making it easier for businesses to justify capital investments later.

Tools like GrantHub’s eligibility matcher can help you filter Quebec energy programs by industry and project type in seconds, which is useful if you are comparing waste heat recovery funding with other energy efficiency grants.

Eligible study expenses

While construction costs are not covered under Stream 1, eligible expenses typically include:

• Engineering and technical analyses
• Energy modelling and heat flow assessments
• Financial and economic feasibility analysis
• Professional fees directly related to the study

These studies form the foundation for a future application under the infrastructure implementation stream.

Common Mistakes to Avoid

1. Applying without a clear infrastructure concept
   The study must focus on a real, defined project. Vague ideas about “improving efficiency” are not enough.

2. Assuming construction costs are covered
   This stream funds studies only. Capital costs are addressed in a separate implementation stream.

3. Skipping the feasibility study before Stream 2
   The feasibility study is required before applying for infrastructure funding. Skipping it can disqualify your project later.

4. Underestimating timelines
   Feasibility studies take time to scope, complete, and review. Build this into your project schedule.

Frequently Asked Questions

Q: How much funding can I receive for a waste heat recovery feasibility study in Quebec?
You can receive up to $150,000, covering a maximum of 75% of eligible costs. You must fund the remaining portion yourself.

Q: Is the feasibility study mandatory before applying for infrastructure funding?
Yes. This study is required before submitting an application to the waste heat recovery infrastructure implementation stream.

Q: What types of businesses are eligible?
Industrial and manufacturing facilities are common applicants, but any organization planning a qualifying waste heat recovery infrastructure project may be eligible if program criteria are met.

Q: Are grant funds considered taxable income in Quebec?
In many cases, government grants are considered taxable income. You should confirm treatment with your accountant or tax advisor based on your business structure.

Q: How long does approval take?
Timelines vary depending on project complexity and application volume. Planning several months for review is a practical assumption.

GrantHub tracks hundreds of active grant programs across Canada—including Quebec energy and climate funding—so you can quickly check which ones match your business profile.

Next Steps

If your business releases unused heat, a feasibility study is often the first practical step toward turning that loss into savings. Waste heat recovery funding in Quebec reduces the financial risk of exploring these projects and supports long-term energy transition goals.

To go further, compare this program with other options like Energy Efficiency Grants in Quebec and Clean Technology Funding for Canadian Manufacturers. GrantHub helps you see how these programs fit together so you can plan your next move with confidence.