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Governments fund food processing energy efficiency

January 30, 2024  By Government of Ontario

More than $16 million worth of energy cost savings projects have been generated due to investments by the governments of Canada and Ontario through the Sustainable CAP, helping food processing businesses increase energy efficiency and lower their costs.

The cost-shared funding, provided through the Agri-Food Energy Cost Savings Initiative, will help 30 food processors lower their energy costs to be more competitive and sustainable. The initiative focuses on supporting projects that prioritize energy efficiency by investing in new technology and equipment, as well as building or facility modifications. This funding will contribute to an anticipated $3 million in annual operational cost savings for recipient businesses.

“It’s vitally important that we continue to strengthen the agri-food sector in Ontario and right across the country,” said Lawrence MacAulay, federal minister of agriculture and agri-food. “This new funding will help our food processors make their operations more sustainable and energy efficient while protecting their bottom line.”


Under the Agri-Food Energy Cost Savings Initiative, applicants could receive up to 20 per cent cost-share funding for eligible costs, to a maximum of $300,000 per business. Projects supported through the initiative are to be completed by March 31, 2025.

Some examples of investments made through this initiative include:

  • $6,368.70 for R Denninger Limited in Hamilton, to purchase a new pressure washing system that will reduce natural gas usage and operating costs;
  • Up to $16,819.61 for Front Road Cellars at Blueberry Hill in Norfolk County, to install solar power systems and high-efficiency heat pump and radiant heat source to make their operations more efficient and sustainable; and
  • Up to $165,000 for Marini Foods Limited in Toronto, to improve their roofing and HVAC to increase energy efficiency.

The Agri-Food Energy Cost Savings Initiative was developed following discussions with Ontario’s food processing industry. It is part of a series of initiatives the government has implemented to support food processing in the province, including committing up to $25 million through the Agri-Tech Innovation Initiative, for which applications open on Feb. 15.


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