Large industrial and infrastructure projects in Quebec generate significant unused heat. The Waste Heat Recovery — Stream 2: Infrastructure implementation program helps businesses and project owners turn that lost energy into usable heat by covering most of the build cost. The program can fund up to 75% of eligible expenses. The maximum is $40 million per project.
This guide explains who qualifies, what costs are covered, and how to apply with confidence.
Stream 2 focuses on building and connecting heat recovery infrastructure, not studies or pilots. It supports the construction of heat networks that capture waste heat from one or more emitters and deliver it to one or more users.
This program is administered by the Ministère de l’Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs (MELCCFP) as part of Quebec’s energy transition measures.
The program is designed for project owners responsible for building and operating the heat recovery system.
Your project may be eligible if:
Waste heat must come from qualifying sources, such as:
The recovered heat must be reused to meet real heating needs, not simply dissipated.
Stream 2 is built for large-scale implementation, so eligible costs go well beyond equipment alone.
Eligible expenses include:
Tools like GrantHub’s eligibility matcher can help you quickly confirm whether your infrastructure costs align with Stream 2 rules before you apply.
While each project is assessed individually, successful applications usually follow a clear path:
Because of the funding size, expect a rigorous review process.
Missing the heat network requirement
Stream 2 is not for standalone equipment. A connected heat distribution network is mandatory.
Including ineligible operating costs
Day-to-day operating expenses after commissioning are not eligible.
Underestimating documentation needs
Weak engineering or cost breakdowns slow reviews or lead to rejection.
Assuming 100% funding
The program caps funding at 75%, even for strong projects.
Q: Does my project need to include a heat distribution network?
Yes. Building and connecting to a heat network is a core eligibility requirement under Stream 2.
Q: How much funding can one project receive?
A project can receive up to 75% of eligible costs, capped at $40 million.
Q: Are internal staff salaries eligible?
Yes. Internal salary costs for project development and execution can be eligible, within program limits.
Q: What types of waste heat sources qualify?
Eligible sources include industrial discharges from incinerators, data centres, and wastewater facilities.
Q: Is the funding considered taxable income?
The funding is generally treated as government assistance. You should confirm the tax treatment with your accountant or tax advisor.
Q: Where can I find more programs like this?
GrantHub tracks a wide range of energy and infrastructure grants across Canada, making it easier to find programs that match your project.
Waste Heat Recovery — Stream 2 offers rare, large-scale infrastructure funding for Quebec projects that are ready to build. The key is matching your technical design and budget to the program’s strict requirements.
GrantHub tracks hundreds of active grant programs across Canada, including Quebec energy and infrastructure funding. Checking which programs fit your project profile can help you plan your next move with clarity.
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