Waste Heat Recovery Projects in Quebec: When a Feasibility Study Is Required

By GrantHub Research Team · · Lire en français

Waste Heat Recovery Projects in Quebec: When a Feasibility Study Is Required

If your Quebec facility produces excess heat from industrial processes, you may be wondering when a feasibility study is mandatory before moving ahead with a waste heat recovery project. In Quebec, a formal feasibility study is not just a best practice — it is often a funding requirement. The provincial Waste Heat Recovery — Stream 1: Feasibility Study program covers up to 75% of study costs, to a maximum of $150,000.

Understanding when this study is required can save you time, reduce risk, and keep your project eligible for larger infrastructure funding later.


When Is a Feasibility Study Required for Waste Heat Recovery in Quebec?

A feasibility study is required when you plan to apply for provincial funding to build a waste heat recovery system, not just explore the idea.

Under Quebec’s waste heat recovery funding framework, projects are divided into stages:

Situations where a feasibility study is required

You must complete a formal feasibility study if:

  • You plan to apply to the Infrastructure Implementation stream (Stream 2) for capital funding
  • Your project involves capturing and redistributing thermal waste from industrial or commercial operations
  • The technical design, energy output, or financial return of the system has not been fully validated
  • Public funding will be used to support construction or installation

The Quebec government explicitly states that a feasibility study is mandatory before submitting an infrastructure funding application.

Situations where a feasibility study may not be required

A feasibility study may not be required if:

  • The project is already fully engineered and financed without public funds
  • You are not seeking provincial infrastructure funding
  • The system is a minor modification with no technical uncertainty

However, even in these cases, completing a study can strengthen internal decision-making and reduce approval delays.


What Counts as a Feasibility Study Under Stream 1?

The Waste Heat Recovery — Stream 1: Feasibility Study program supports studies that assess both technical and financial viability.

Key requirements of the study

An eligible feasibility study must:

  • Evaluate available sources of waste heat
  • Analyze capture, storage, and distribution options
  • Estimate energy efficiency gains and greenhouse gas reductions
  • Include capital costs, operating costs, and return on investment
  • Demonstrate whether the project is viable enough to move to implementation

Eligible expenses typically include:

  • Engineering and technical analyses
  • Energy modelling and system design scenarios
  • Financial and economic assessments
  • External consultant and professional fees

The program covers up to 75% of eligible costs, with a maximum contribution of $150,000.

Tools like GrantHub’s eligibility matcher can help you confirm whether your proposed study meets Stream 1 requirements and filter similar programs by province and industry in seconds.


Who Should Apply for the Waste Heat Recovery Feasibility Study Grant?

This funding is designed for organizations planning medium- to large-scale heat recovery systems.

Eligible applicants typically include:

  • Manufacturing and industrial facilities
  • Commercial or institutional building owners
  • Energy-intensive operations with continuous heat output
  • Organizations operating in Quebec

Manufacturing facilities are explicitly eligible when the project focuses on capturing and redistributing waste heat from production processes.


Common Mistakes to Avoid

Assuming the feasibility study is optional
Many applicants start designing infrastructure without realizing Stream 2 funding requires a completed study first.

Submitting a high-level concept instead of a formal study
The program does not fund basic ideas or internal memos. Detailed technical and financial analysis is required.

Including ineligible expenses
Construction, equipment purchases, and installation costs are not eligible under Stream 1.

Waiting too long to plan the study
Feasibility work can take months. Delaying it can push your infrastructure application into the next funding cycle.


Frequently Asked Questions

Q: Is the feasibility study mandatory before applying for infrastructure funding?
Yes. A completed feasibility study is required before you can apply to the waste heat recovery infrastructure implementation stream.

Q: How much funding can I receive for a feasibility study?
The program covers up to 75% of eligible costs, to a maximum of $150,000 per project.

Q: What types of expenses are eligible?
Eligible expenses include engineering studies, energy modelling, financial analysis, and external consultant fees related to the study.

Q: Can manufacturing facilities apply?
Yes. Industrial and manufacturing facilities in Quebec are eligible if the project focuses on capturing and redistributing waste heat.

Q: Is the grant considered taxable income?
In many cases, government assistance may be considered taxable. You should confirm treatment with your accountant or tax advisor.

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


Next Steps

If you are planning a waste heat recovery project in Quebec, confirming whether a feasibility study is required should be your first step. Completing it early protects your eligibility for larger infrastructure funding and strengthens your business case.

GrantHub helps you identify feasibility study funding, infrastructure grants, and related energy programs in one place — so you can plan each stage of your project with confidence.

See also:

  • How to Identify Eligible Energy Efficiency Measures for Quebec Grants
  • Energy Efficiency and Clean Tech Rebates for Canadian Businesses
  • How to Fund Energy Efficiency and Renewable Energy Feasibility Projects

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