Clear Results. Clear Thinking. · Clear results . Clear thinking . “By bringing together the people with ideas, ... series of documents being developed to provide strategic insights

Clear Results. Clear Thinking.

2005 Annual Report

Funding snapshot (for all approved funding rounds as of December 31, 2005)

SDTC has approved 75 clean technology projects for funding since 2002.

Climate Change Clean Air Clean Water Clean Land

Funding by sector (for all approved funding rounds as of December 31, 2005)

SDTC supported projects provide solutions for major economic sectors in Canada.

Report ContentsAbout SDTC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-11Anatomy of a project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Message from the Chairman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Message from the President and CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Performance versus objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18-21 Auditor’s report and financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23-31Contact information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Board of Directors, Member Council and SDTC Team . . . . . . . . . . . . . . 32-33

SDTC at a glanceSDTC acts as the primary catalyst in building a sustainable development technology infrastructure in Canada .

Current funding period: To 2010Total funding rounds to date: 7Total SDTC portfolio value: $618 millionFunds allocated to date: $169 millionDollars leveraged from private sector SMEs: $329 millionDollars leveraged from private sector MNEs: $40 millionDollars leveraged from other funders: $80 millionProportion of leveraged dollars from private sector: 60 %Proportion from government and academia: 13 %Average SDTC contribution (percentage): 27 %SDTC contribution (dollar range): $153K-$8 .6 millionTotal eligible project cost (project size range): $332K-$34 .5 millionFirst applications for clean water and clean land: August 2005Proportion of projects with combined clean air/climate change benefits: 77 %

Canada’s clean technology potentialSince its inception, SDTC has encountered an active clean technology sector.Funding applications received since first round in April 2002: 1,084Number of organizations involved in applications: 2,800Total funds requested to date: $2 .3 billion

Economic sector Percentage of funded projects Current investment

Funding recipientsSDTC makes non refundable contributions to project consortia, which may be led by any member of a technology’s supply chain: Academics and Researchers | Technology Developers | Manufacturers | Distributors | Retailers | Industrial and Commercial End Users • 82% of SDTC funded consortia are industry led• 89% of SDTC consortia leaders are small or medium sized enterprises (SMEs), representing 85% of SDTC allocated funds• 11% of SDTC consortia leaders are multinational enterprises (MNEs), representing 15% of SDTC allocated funds• 88% of project IP (intellectual property) comes from the private sector

Energy Exploration and Production 24 % $ 42,178,192 Power Generation 16 % $ 27,006,556 Energy Utilization 25 % $ 42,918,120Transportation 12 % $ 19,963,280Agriculture 5 % $ 08,449,539 Forestry and Wood Products* 9 % $ 14,455,789Waste Management 9 % $ 14,870,564 *Complete sector name: Forestry, Wood Products, and Pulp and Paper Products

We’re in the business of clean technology

Sustainable Development Technology Canada is a not for profit Foundation established by the Government of Canada in 2001 . Our Foundation 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, arrest climate change, and improve the productivity, profitability and global competitiveness of Canadian industry .

We take on risk and build entrepreneurial strength

SDTC helps bring new technologies to market by supporting them through the stages of development

and demonstration: those critical phases that fall between research and commercialization which

the private sector does not fund because the technological and market risks are too great . We do more

than provide funding . We work directly with technology developers to strengthen their entrepreneurial

skills and business cases, enabling them to pursue and achieve success in the marketplace after their

SDTC funded work is completed .

We create the conditions for real results

By making it possible for technologies to move through the pre-commercialization stage, we protect the

substantial research investments made by governments, academic institutions and industry . Otherwise,

time, effort and money are lost . Innovations may leave the country or fail . By de-risking clean

technologies, we encourage downstream investment by the private sector, creating the best possible

chance for solutions to reach the market and generate revenue .

Canada reaps the rewards

The benefits to Canadians are economic, environmental and social . Clean technologies make our

industries more competitive . They conserve and make better use of natural resources . They address

directly issues of public health, and the costs of health care, that stem from the quality of our air, water

and land . Most importantly, they have a broad and inclusive impact: they truly bring advantages for all .

Sustainable Development Technology Canada

Clear results . Clear thinking .

“By bringing together the people with ideas, the entrepreneurs who can determine business potential, and investors who provide financial acumen, SDTC is helping take clean technologies through the demonstration stage. This role is important given the complicated, non-linear and risky nature of innovation efforts. We’ve seen the value of consortia in Alberta, where for the longest time the oil sands were not considered commercially viable. That’s all changed, thanks to the work of a consortium of government and industry partners.” Dr. Indira Samarasekera

President, University of Alberta and spearhead in establishing the Canada School for Sustainable Energy (in association with the Universities of Calgary and Lethbridge)

2005 AR �

Coaching companies for success

SDTC’s funding application process is rigorous

because it has to be . Preparing technologies

for the marketplace demands time, money and

practical thinking . To assist Canada’s clean tech

developers, SDTC holds workshops on

Entrepreneurial Excellence and routinely

provides mentorship and coaching to

applicants whose initial submissions to the

fund are not successful . Since its inception,

SDTC has helped 28 applicants strengthen their

applications through this kind of intervention:

14 have subsequently received

funding approval .

“Going through the SDTC process improved our ability to focus on what needed to be done to take our technology to market . We were able to develop a clear, solid value proposition that would help us secure future funding from the private sector for full commercialization .”

Steve Petrone, Ph.D. Founder and President Quantiam Technologies Inc .

Since its first call for funding applications in 2002, SDTC has connected

with entrepreneurs throughout Canada’s entire clean technology sector.

The Foundation has received submissions in 57 technology categories

from applicants in every province and one territory, involving a total of

2,800 organizations.

This has yielded a diverse portfolio of 75 funded projects

encompassing seven major economic sectors: energy exploration and

production; power generation; industrial, commercial and residential

energy utilization; transportation; agriculture; forestry and wood

products; and waste management.

SDTC chooses projects for their potential to improve the

productivity, efficiency and profitability of businesses in their associated

sectors while simultaneously delivering environmental benefits.

To increase the chances of success, SDTC requires every project to

involve a consortium of partners from the relevant supply chain.

These are the organizations necessary to deliver the specific technology

to the marketplace.

SDTC funded consortia may include product developers,

manufacturers, distributors, retailers, capital investors, demonstration

customers and industrial and commercial end users. By fostering

knowledge sharing and business connections between such

organizations, SDTC is helping build Canada’s clean tech networks

and infrastructure.

Broad . Relevant . Representative .

75 projects across 7 economic sectors

Photo courtesy of Suncor Energy Inc .

� Partnering for real results .

The hydrogen economy: from waste to revenue

One of the areas SDTC has identified for

potential Canadian clean tech leadership is

the hydrogen economy . A consortium led

by Sacré-Davey Innovations Inc . is wasting

no time trying to make that potential a reality .

Capturing and purifying waste hydrogen from

an electrochemical manufacturing facility,

the consortium aims to demonstrate the full

hydrogen value chain: capture, purification,

supply, storage, distribution and use .

The hydrogen is used alone or in combination

with other fuels or power sources to operate

a fleet of light duty trucks, transit buses and

a fuel cell system . Already, this project is

making international waves, attracting interest

from Asia, North and South America, and

the Middle East .

Consortium membersSacré-Davey Innovations Inc .Clean Energy Fuels CanadaDynetek Industries Ltd .Easy-wash Inc .Greater Vancouver Transit Authority dba TranslinkHydrogen Early Adopters FundHydrogen Technology and Energy Corp .Natural Resources Canada - Canadian Transport Fuel Cells AllianceNuvera Fuel CellsPowertech Labs Inc .QuestAir Technologies Inc .Westport Research Inc .

Clean technologies are cost intensive to develop and demonstrate.

This deters risk averse private investors and creates a funding gap that

government must step in to fill. SDTC has proven its strength in

performing that role.

In 2005, venture capital seed and early stage investments in the

energy and environmental technologies sector (a subset of clean tech)

totalled a modest $33 million. In comparison, SDTC’s funding

allocation of $86 million in that same period accounted for 72 percent

of trackable seed and early stage investment to the same subset. As the

largest active clean tech fund of its kind in the world, SDTC is Canada’s

market maker.

SDTC’s support for clean technologies must be based on clear

knowledge of where Canada stands to reap the greatest economic and

environmental benefits. The Renewable Electricity Generation SD

Business Case™ published by the Foundation in 2005 is the first in a

series of documents being developed to provide strategic insights into

specific economic sectors. Combining comprehensive stakeholder input

with objective SDTC analysis, it presents an industry led vision of

Canada’s future potential and investment opportunities in biogas, bio oil,

wind, solar power and stationary fuel cells.

SDTC will continue to identify and focus on key areas of potential

such as the bio based economy, energy exploration and production, and

the hydrogen economy. Also, it will advocate the need to close the gap,

for governments to forge connections with the private sector, providing

investment incentives and actively assisting with commercialization.

Meeting the need

72% of trackable seed and early investment

“Canada has a strong environmental industry that includes many smaller technology companies whose ideas for products need to be supported if they are going to compete with those from other countries. SDTC is helping identify product opportunities in which Canadian companies have the best chance of winning, both for the Canadian economy and the global environment. Two key areas of focus are electricity and hydrogen, which will likely be the two energy carriers in the future economy.”

Denis Connor Chairman, QuestAir Technologies Inc.

72% of trackable seed and early investment

“Without funding from SDTC, a lack of financial resources would have precluded us from developing a commercial prototype of our technology. Quite literally, our invention would have never seen the light. SDTC funding has given us a tremendous boost.”

Dr. Joseph Dableh President and CEO, Fifth Light Technology Ltd.

2005 AR 7

A bright idea

Lighting accounts for 30 to 60 percent of

the total electrical energy consumption in a

typical commercial building . That won’t always

be the case if Fifth Light Technology has

its way . Helped by a $3 million contribution

from SDTC, the company began demonstrating

its dimmable magnetic ballast fluorescent

lighting technology in Toronto in 2005 .

Achieving greater than projected energy

savings of 65 to 70 percent, Fifth Light

improves lighting quality while unnoticeably

reducing the amount of light produced . With

roughly a billion magnetic ballast fluorescent

lights in use throughout North America, these

results are compelling . If installed in 200 office

towers, Fifth Light’s technology would replace

the output of one large coal fired generator .*

* Based on estimate of 2 .2 million sq . ft . and 50,000 fluorescent fixtures, with coal fired generator output between 175 and 400 MW .

Consortium membersFifth Light Technology Ltd .Great West Life Realty AdvisorsLindsay Electronics New Orbit Technologies Inc .Toronto Hydro Energy Services Inc .

SDTC continues to carry out a vigorous program of directly funding

Canadian clean technology projects. In 2005, the Foundation issued two

calls for applications, including its first ever in the areas of clean water and

clean land. In total last year, SDTC allocated $86 million to 30 projects,

bringing its overall investment since inception to $169 million.

The impact of that funding will be felt as projects reach

completion and enter the marketplace. The average duration of an SDTC

project is 3.7 years. In 2005, seven of the Foundation’s initially funded

projects came to conclusion. Two of these achieved commercialization,

securing customers with contracted sales. In both cases, the inclusion of

customers within the project consortia clearly illuminated the end user

value of the technologies, affirming the importance of SDTC’s insistence

on engaging the entire supply chain. A third project was completed in

2005 fully ready for market.

The remaining four successfully demonstrated real world,

practical performance and are seeking investment from the private

sector to help gain market entry. Ten more projects are slated to

finish in 2006.

Funding with an impact

$169 million allocated to clean technology projects

8 Partnering for real results .

Poised for international leadership

For every million people, municipal wastewater

plants must dispose of some 20,000 dry tons

of waste, at high cost to city governments .

Los Angeles is hoping to change that with the

help of Paradigm Environmental Technologies’

MicroSludge processor, which pre-treats

waste being fed into conventional anaerobic

digestors . Normally such digestors eliminate

20 to 35 percent of waste sludge;

the remainder is either incinerated or hauled

to landfills or farmers’ fields, releasing methane

and carbon dioxide into the atmosphere .

Through its innovative pre-treatment,

MicroSludge liquefies waste sludge, enabling

conventional anaerobic digestors to convert

95 percent of it to biogas . This biogas can be

used to generate electricity and heat, reducing

the plant’s need for energy from electric

and gas utilities .

Consortium membersParadigm Environmental Technologies Inc . CH2M HILLChilliwack Waste Water TreatmentNational Research CouncilNatural Resources CanadaPowertech Labs Inc .

The total value of SDTC’s portfolio at the end of 2005 was $618 million,

$449 million of which was contributed by project participants. The

private sector plays a key role, responsible for 60 percent of the total

leveraged amount. This is an important indicator that Canadian

businesses believe clean technology has real market value and profit

making potential. Some 82 percent of SDTC project consortia are

industry led, and 88 percent of the intellectual property on which

SDTC projects are based comes from industry sources.

Intensifying interest from private sector investors combined with

support from SDTC and other funding sources has led Canada to become

a major player in the clean technology arena. In fact, Canada contributed

15 percent of North America’s clean tech venture capital investment last

year. Clean tech investments amounted to US$1.58 billion in 2005.

Strong participation by industry is crucial for SDTC to act, as

mandated, as a catalyst in the development of Canada’s sustainable

technology infrastructure. Through its fund, SDTC provides a point of

attraction for the private sector and helps raise awareness of clean tech

opportunities: only since the Foundation was established have Canadian

venture capital fora begun to hold clean tech parallel sessions.

Acting as a catalyst

$449 million from project partners

“SDTC helped us demonstrate to the industry on a large scale what our technology could do. We’ve had phenomenal results in the pilot at the Chiliwack Waste Water Treatment Centre. The whole industry’s going, ‘Wow, you’ve really nailed this thing.’ We’re way above the radar screen now. The whole U.S. is watching, and we have interest from Korea, the United Kingdom and France.”

Rob Stephenson Chief Technical Officer, Paradigm Environmental Technologies Inc.

“The 12.5 megatonnes is important. As a contribution coming from companies that are generally small (in other words, from entrepreneurial developments), that figure can be multiplied many times over into the future as these technologies are adopted more generally in Canada and, more importantly,

in the world.”

Ken McCready Principal, K.F. McCready & Associates (former CEO, TransAlta Corporation)

2005 AR 11

Addressing the energy dilemma

Canada’s rising energy needs are not unique .

The International Energy Agency, based in Paris,

projects a 70 percent increase

in worldwide demand for energy by 2030 .

This seems in direct conflict with the

environmental and health related need to

use less . We can help reconcile our growing

need for energy with environmental

considerations by using energy more

efficiently . Importantly, some 25 percent of

the technology solutions funded by SDTC

are intended to reduce the energy intensity

of industries such as steelmaking,

petrochemical production, food production,

forestry, pulp and paper, as well as lighting

and heating for commercial buildings such

as offices, schools and hospitals .

While SDTC has four distinct areas of focus (climate change, clean air,

clean water and clean land), the Foundation seeks out technologies that

can deliver benefits in multiple areas at once. This amplifies positive

environmental effects and creates opportunities for productivity and

profitability gains across industries and economic sectors. Within the

Foundation’s present portfolio, 77 percent of projects aim to deliver

co-benefits (climate change/clean air). In 2005, every project approved

had this co-benefit potential.

The technologies currently supported by SDTC have a

combined potential to reduce Canada’s greenhouse gas emissions by

12.5 megatonnes annually in 2010. This would be roughly equivalent

to improving the efficiency of all passenger vehicles in Canada by 16%.

These estimates are cautious, discounted by 90 percent to account for

potential technology failures and market uncertainties.

Canada is the second highest per capita energy consumer in

the world. Demand is only going to increase. It is imperative that clean

technologies both reduce environmental impacts and also increase

efficiency and competitiveness. An SDTC funded project led by

Highmark Renewables Inc. shows what can be achieved. Highmark has

developed an anaerobic digestion system that uses cattle manure to

produce energy, biobased fertilizer and reusable water. By cutting waste

and harnessing new energy sources, Highmark’s system can save a farm

up to $37,500 per 1,000 head of cattle each year.

Extending the benefits, creating value

77% of SDTC projects have co-benefits


Anatomy of a project

Carmanah Technologies Inc. and its consortium of partners were among the first recipients of SDTC

funding in 2002. Their project, which concluded successfully in 2005, provides a clear real world example

of why development and demonstration are critical phases for clean technologies, and of how SDTC’s

process creates the best possible conditions for success.

In Carmanah’s case, success meant translating $500,000 in SDTC funding into $8 million in

international sales of a fully commercialized clean technology.

From $500,000 in funding to $8 million in international sales

The Partners

• Carmanah Technologies Inc .• British Columbia Institute of Technology• BC Hydro

The Technology

Solar powered LED edge lit signage

Value proposition: take advantage of the practical, versatile use of solar energy for urban applications to save money, reduce energy consumption, and realize climate change and clean air benefits .

What’s unique? Previously, solar LED technology had been used only for navigational and garden lighting .

The Project

Develop and demonstrate three solar LED edge lit products:• Bus stop signage• Residential address signs• Traffic signs

Funding approval •

Preliminary application to SDTC•

Full proposal•

• April 30, 2002 • November 1, 2002• July 23, 2002Pre-application Commercialization

2005 AR 1�

Bus shelter

Carmanah’s CEO, Art Aylesworth, in a Toronto, ON, bus shelter outfitted with i-SHELTERTM solar powered LED lighting technology . More than 350 units were installed .

Street sign

Carmanah’s LED street name signs vastly improve nighttime visibility .

What the Demonstration Revealed

Bus stop signagePositive response from demonstration users in six North American cities revealed a new product possibility: solar LED illuminated bus shelters . Residential address signsFeedback from sample installation of 100 units indicated opportunities for product refinement, including price reductions and ability to customize . Traffic signsThe initial application, traffic markers in the UK, proved to be of limited market value . This prompted a refocus on a larger market opportunity: edge-lit street signs for North American cities .

Results

Bus stop signage1,300 bus stops and 1,200 bus shelters deployed in North America and Europe . Commercialization achieved with $8 million in sales .

Residential address signsRedesigned per feedback and awaiting patent protection .

Traffic signsSeveral hundred shipped to US cities for testing, the first ever LED street signs in service, and awaiting regulatory approval from State of Florida, the primary regulator in this area .

Project completion/Final reporting •

November 29, 2005 •• November 27, 2002

•

Pre-application Commercialization

Project execution

1� Partnering for real results .

When the federal government created SDTC in

2001, it envisioned a Foundation that would

measurably advance the country’s clean

technology capacity. I am pleased to say SDTC

took significant steps toward realizing that

vision last year.

The Foundation’s first few years were

devoted to laying the groundwork for long-term

success. This involved implementing unique

governance and business models, establishing

connections throughout the clean technology

community, and investing in auspicious, innovative

projects. As detailed in this report, all fronts

experienced significant and tangible progress

during 2005.

In 2004, the federal government expanded

SDTC’s mandate to include clean water and

soil technologies, adding $200 million to the

Foundation’s budget. SDTC considered this to

be a clear indication of confidence in its results

to date. SDTC received the additional funds in

April 2005 and issued a call for water and soil

projects in August.

By the end of 2005, seven SDTC funded

projects reached completion. Two have

commercialized and a third is market ready.

The others will finish final reporting in the first

part of 2006.

The completion of these projects is

important because the true measure of SDTC’s

value is in the impact of the technologies it funds.

Out in the marketplace, the environmental and

economic benefits of SDTC funded solutions will

move from projections into real measurements.

I was pleased to learn that SDTC’s

effectiveness has attracted the attention of groups

in other jurisdictions. Parties in British Columbia,

Alberta, California and Australia have all

expressed interest in emulating key aspects of the

Foundation’s approach.

While SDTC operates at arm’s length from

government, it remains accountable to Canadians

through the Minister of Natural Resources. The

Foundation’s Board of Directors and Member

Council include representatives of private industry,

academia and government. In 2005, validation of

SDTC’s distinctive business and governance

models came through two comprehensive reviews:

a Government of Canada audit, and a corporate

performance evaluation conducted by an

Message from the Chairman

2005 AR 15

independent agency. I’m proud to say that SDTC

received high marks in both cases. No significant

deficiencies were identified.

In accordance with its governance

practices, SDTC held an annual public meeting

once again in 2005. It produced a corporate plan

and an executive summary to the corporate plan

as well as an annual report and annual report

supplement.

SDTC strives to meet the needs of industry

and the demands of the marketplace while

honouring its duty to Canadians. The Foundation

maintains this fine balance by adhering to a series

of rigorous procedures and protocols. Its

application process, for example, is stringent and

exhaustive for two principal reasons: to protect

the investments of taxpayers, and to help build the

capacities of Canadian entrepreneurs operating in

the sustainable development sector. SDTC invests

only in projects that are likely to lead to practical

and viable applications capable of delivering

economic, environmental and health benefits

to Canadians.

The Government of Canada changed shortly

after SDTC’s fiscal year end. I am encouraged by the

commitment expressed by Prime Minister

Stephen Harper and his party to take actions that

will ensure clean air, water and land. I believe that

SDTC is well on the way to delivering the kinds

of technology based, made in Canada solutions

that the federal government is looking for.

SDTC’s accomplishments during 2005

were the product of much hard work. I’d like to

express my appreciation to Foundation staff, who

performed admirably during a year of sustained and

intense activity. I’d also like to thank the members

of our Board of Directors and Member Council for

their diligent work and astute guidance.

The remarkable results of 2005 indicate to

me that SDTC is poised to soar even higher in the

years to come.

James M. Stanford, O.C. Chairman of the Board of Directors


The roots (1) of the “sustainability infrastructure tree” emerging from the earth are beginning to take hold as technology developers, academics, private sector investors, governments and the eventual end-users of these products and services from industry, and the wider public, learn about sustainable technology advantages and returns.

The leaflet (2), indicating both multiple technologies and players, is “filling out”. There are over 2,800 companies and institutions that have applied to SDTC for funding. In turn, they have proposed a wide range of technology solutions, representing some 57 different categories. This is evidence that there is a growing base of expertise and solutions. Working with Partners

Our tagline (�) indicating “Partnering for real results” is a fundamental belief that guides our approach to work everyday. To attain our mission of “acting as the primary catalyst in building a sustainable development technology infrastructure in Canada,” we must work with and through others. These partnerships will be the backbone of a network of sustainable development players committed to success for many different, yet interconnected reasons. SDTC is committed to working in partnership with others. The following examples illustrate just how extensively partnerships are integrated into SDTC’s

processes. Our project screening and funding process is thorough and objective because of guidance from acclaimed experts. Work is shared and enhanced by SDTC partnering with environmental non-governmental organizations (ENGOs) and specialized consultants, who help applicants with emission impact calculations. Consortium members in a funded project help define technology performance characteristics for real world applications and may provide the point of first market entry for these products. We use third party evaluators to help identify process improvements in our organization, whose mindset is one of continuous learning and superior performance. Our relationships with regional research institutes and industry associations enable connectivity to new applicants. SDTC’s portfolio companies are strengthened in preparation for future market success by the involvement of private sector investors. We are better informed and can contribute to national strategies more extensively through our daily dialogue with government colleagues across the country. All these partnerships help to build a SD network and improve SDTC’s effectiveness to fulfill its mission.

Supporting real world solutions

Tangible, real results are a necessity for all businesses and SDTC is no different. We deliberately support those environmental technology options that potentially can deliver economic returns in the marketplace. SDTC

Message from the President and CEO

SD Infrastructure Takes Root

Four short and exhilarating years since SDTC’s inception have produced significant early results

from Canadian entrepreneurs backed by SDTC, who are contributing to the emerging clean

technology sector. Practical realization of the concepts behind the SDTC brand is occurring.

12

�

2005 AR 17

does not fund demonstration projects for technologies that once the subsidy is removed an uneconomic “orphan” technology remains that won’t be adopted by end users. Of course, there is risk that technologies may not perform as planned, however, should they meet practical specifications then the cost efficiency has been increased and the likelihood of market adoption enhanced. Through this business focus, SDTC increases the potential for measurable environmental and economic results.

Demonstrating early tangible results

Not surprisingly, these technologies take a while to prove out; on average our projects from the date of approval take 3.7 years to complete. Some opportunities we have supported will have the potential to create mas-sive market change; these disruptive technologies will take longer to attain market entry. In 2005 we saw our first seven consortia complete their projects. You can find more detail in this report. Already, two of these technologies have fast-tracked to market. The remaining five have attained the planned technology performance requirements at their respective levels of development. Of these five, three will require further work to strengthen their technology value proposition. The other two are seeking private sector investment to build the company and take it through the commer-cialization phase. If one examines the literature on technology development success rates, a commonly cited benchmark is that two out of 10 products/ technologies will succeed. It is still early days to be certain, however, there are indications that SDTC and its partners are producing results that exceed the norm.

Realizing the benefits

Canada must act now to take a leadership position because the window of opportunity is closing. SDTC has a diversified portfolio of projects, still the largest of its kind globally, that will provide real world solutions for major sectors driving the Canadian economy.

We need the continued commitment and support of all the players in the innovation chain to build on this portfolio so that Canada can truly be a leader in clean technology. We are at a watershed as our largest trading partner, the United States, as well as the European Economic Union and the massive Asian markets are awakening to the clean technology opportunity. The network in Canada is still fragile, with several energy oriented corporate funds recently reducing their funding of clean technologies. Regardless of one’s belief in environmental technology, Canada is inextricably involved as it must move from a commodity-based economy up the value chain to one of higher value added products and new services derived from our traditional industries. From what we have observed at SDTC, Canada has the entrepreneurial capacity and industry linkages to be a world leader in three areas: energy exploration and production, the hydrogen economy and the bio based economy. We need to pull together to become dominant in these arenas. Partnering is a critical element of the SDTC team’s ethos. We have come a long way in a very short time, encouraged by the Board, Member Council, the federal government and the private sector at large. None of this progress would have been possible without the dedication, enthusiasm, productivity and compe-tence of SDTC staff. Thank you so much.

Vicky J. Sharpe President and CEO


Total SOIs received since inception* 1,08� (based on eight calls for SOIs)

*SDTC launched its first round of funding in April 2002 and approved its first projects in November of that year .

Total SOIs received in 2005 186Round 7: 85Round 8: 101

Performance versus objectivesSDTC consistently met or exceeded its objectives in 2005, as it has done every year since its inception .

According to the terms of its Funding Agreement with the Government of Canada and those of the Act under which the Foundation was created, SDTC is required to report on specific aspects of its performance in this annual report and in other supplemental documents: the Supplement to the Annual Report and the Corporate Plan - Executive Summary . These are available online at www .sdtc .ca; hard copies may be obtained upon request .

Classification of emission impacts for �0 projects funded by SDTC in 200587 % have a direct impact on climate change13 % have an impact on clean air 100 % have climate change and clean air benefits

Classification of emission impacts for 75 projects funded by SDTC since inception 81 % have a direct impact on climate change19 % have an impact on clean air77 % have climate change and clean air benefits

Estimated total annual GHG reduction in 2010:attributable to �0 projects funded by SDTC in 2005 (90 percent discounted)1 .8 megatonnes*attributable to all 75 projects funded by SDTC since inception (90 percent discounted)12 .5 megatonnes*

* This figure remained constant between 2004 and 2005 due to adjustments and refinements to previous calculations . It derives from applicant projections based on accepted ISO and IPCC practices, and accounts for technology impacts and potential market penetration . SDTC discounts applicant projections by 90 percent to account for potential technology failures and market uncertainties .

Initial applications receivedEach year, SDTC is required to issue one call for initial funding applications (Statements of Interest, or SOIs) from Canada’s community of sustainable technology developers . The Foundation issued two calls in 2005, continuing the plan established in previous years . The second of these included submissions for clean water and clean land technologies, enacting SDTC’s broadened mandate .

Reducing GHG emissions and contributing to clean airAn objective of SDTC’s mandate is to support technologies that reduce the greenhouse gas emissions causing climate change and contribute to clean air, clean water and clean land . SDTC made its first call for clean water and clean land projects in 2005 . As a result, the figures here relate only to climate change and clean air benefits . The target for SDTC’s funded projects in 2005 was that 80% be related to climate change and 20% to clean air .

2005 AR 19

Investment percentages for projects funded by SDTC in 2005 30 projects with a total value of $294 millionSDTC: 29 % ($ 86 million)Private sector: 62 % ($ 181 million)Government: 9 % ($ 27 million)

Industry’s commitment to working with SDTC and to applying these relevant technologies is shown by the following:• 96% of funded projects were led by the private sector; and • of the non SDTC funds, 87% were provided by industry in 2005 .

Investment percentages for projects funded by SDTC since inception75 projects with a total value of $618 millionSDTC: 27 % ($ 169 million)Private sector: 60 % ($ 369 million)Government: 13 % ($ 80 million)

Protecting investmentsSDTC utilizes consortia and engages private sector investors to leverage its funding and ensure that its investments, averaged across its entire portfolio, represent no more than 33 percent . 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 27 percent .

Building capacitySDTC builds capacity within Canada’s clean tech community and among applicants to increase their potential for success . In 2005, the Foundation carried out the following activities .

Entrepreneurial Excellence (EE) WorkshopSDTC delivered its second focused EE workshop to Eastern Canadian clean technology developers that had previously submitted an SOI or formal proposal to SDTC . This full day event was co hosted by NGO partner Enviro-Access Inc . Participants received practical advice on how to advance the market readiness of their technologies, strengthen their applications and submit a successful SDTC proposal .

Of the 31 individuals who participated in the EE workshop, 93 percent said the information provided would help strengthen their technologies’ market readiness; 96 percent said they obtained information that would help them submit a proposal conforming to SDTC criteria .

SOI WorkshopIn conjunction with the EE workshop, SDTC delivered its first SOI workshop in 2005, providing entrepreneurs with advice on how to apply for SDTC funding .

Of the 42 participants who attended, 93 percent indicated the presentation was relevant to their business needs and 78 percent said they received good value for their time and expense .


SDTC and consortium-leveraged funding for total portfolio(for all approved funding as of December 31, 2005)

Round # Round SDTC funding Consortium-leveraged funding Total project

1 2002A $ 7,090,542 $ 20,319,933 $ 27,410,475

2 2002B $ 12,536,400 $ 33,194,216 $ 45,730,616

3 2003A $ 15,815,932 $ 45,056,365 $ 60,872,297

4 2003B $ 27,228,847 $ 82,944,786 $ 110,173,633

5 2004A $ 21,306,866 $ 58,987,500 $ 80,294,366

6 2004B $ 43,404,615 $ 116,757,400 $ 160,162,015

7 2005A $ 42,458,838 $ 91,012,979 $ 133,471,817

Total $ 169,8�2,0�0 $ ��8,27�,179 $ 618,115,219

Round82005Bwillbeapprovedin2006.

Round 6 (2004B): SDTC and consortium-leveraged funding by economic sector(Receipt of initial applications: October 6, 2004; SDTC funding approval: June 22, 2005)

SDTC funding Consortium-leveraged funding Total project

Power Generation $ 7,377,436 $ 21,504,839 $ 28,882,275

Energy Utilization $ 16,970,329 $ 35,279,411 $ 52,249,740

Transportation $ 7,356,850 $ 15,303,150 $ 22,660,000

Agriculture $ 3,000,000 $ 8,130,000 $ 11,130,000

Forestry and Wood Products * $ 3,400,000 $ 9,340,000 $ 12,740,000

Waste Management $ 5,300,000 $ 27,200,000 $ 32,500,000

Total $ ��,�0�,615 $ 116,757,�00 $ 160,162,015

Round 7 (2005A): SDTC consortium-leveraged funding by economic sector(Receipt of initial applications: March 16, 2005; SDTC funding approval: October 5, 2005)

SDTC funding Consortium-leveraged funding Total project

Energy Exploration and Production $ 21,090,647 $ 42,605,119 $ 63,695,766

Power Generation $ 6,600,000 $ 14,547,000 $ 21,147,000

Energy Utilization $ 5,621,909 $ 12,848,819 $ 18,470,728

Transportation $ 540,554 $ 829,796 $ 1,370,350

Agriculture $ 3,585,164 $ 9,998,069 $ 13,583,233

Forestry and Wood Products * $ 1,950,000 $ 3,950,000 $ 5,900,000

Waste Management $ 3,070,564 $ 6,234,176 $ 9,304,740

Total $ �2,�58,8�8 $ 91,012,979 $ 1��,�71,817

*Completesectorname:Forestry,WoodProducts,andPulpandPaperProducts

Performance versus objectives

2005 AR 21

SDTC asset allocationsSDTC 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 .

Accountability and IntegrationSDTC continues to be a transparent and accountable organization, as indicated by the successful completion of a compliance audit conducted by Natural Resources Canada . The Foundation integrates its work with the Government of Canada by contributing to several federal strategies related to sustainability, including the Energy Sector Sustainability Sector Table by Environment Canada .

Future plansIn 2006, SDTC will issue two calls for submissions of applications (Statements of Interest, or SOI s), 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’s focus on key areas of strength as identified in the Foundation’s Renewable Electricity Generation SD Business Case™ will also be considered . Two rounds of funding will be approved in 2006, in June and October respectively .

SDTC will continue to refine and promote use of its online eGrant system, which in 2005 was enhanced to support applications for clean water and clean land projects . The eGrant system helps applicants produce complete and standardized submissions, which also benefits SDTC’s expert reviewers when evaluating each proposal .

The Foundation will continue to seek an investment level of around 30 percent across all projects and aim for a 3:1 ratio of industry partner contributions to SDTC investments . An evaluation of SDTC’s performance was conducted in 2005 and a full interim evaluation will be performed in 2006 for completion and release on June 30, 2006 .

SDTC will publish its next sector specific business case on Oil and Gas in 2006, and will continue developing a third on Transportation .

2005 AR 2�

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, 2005 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, 2005 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, CanadaFebruary 17, 2006

2� Partnering for real results .

Statement of Financial PositionDecember 31, 2005, with comparative figures for 2004

2005 200�

Assets

Current assets: Cash and cash equivalents $ 2,272,052 $ 1,340,729 Goods and services tax refund receivable 67,052 64,382 Prepaid expenses 69,489 44,253 2,�08,59� 1,��9,�6�

Investments (note 2) 541,059,847 344,084,032

Capital assets (note 3) 275,235 433,086

$ 5��,7��,675 $ ��5,966,�82

Liabilities and Deferred Contributions

Current liabilities: Accounts payable and accrued liabilities $ 1,009,128 $ 798,741

Deferred lease inducements 13,570 29,854

Deferred contributions: Expenses of future periods (note 4) 542,720,977 345,137,887

Commitments (notes 5 and 7)

$ 5��,7��,675 $ ��5,966,�82

See accompanying notes to financial statements .

2005 AR 25

Statement of OperationsYear ended December 31, 2005, with comparative figures for 2004

2005 200�

Revenue: Amortization of deferred contributions (note 4) $ 19,748,570 $ 13,428,961

Expenses: Investment fund management fees 516,601 362,615 Governance 542,088 424,926 Mandatory reporting 595,895 347,489 Project screening and evaluation 1,588,979 1,249,196 Project contracting and monitoring 469,595 306,542 Infrastructure development and outreach 688,364 434,966 Financial audit 46,594 11,250 General administration 563,059 482,944 Amortization of capital assets 236,402 162,205 Outsourced services 753,778 972,965 Other 411,809 97,146

6,413,164 4,852,244

Project disbursements 13,335,406 8,576,717 19,7�8,570 1�,�28,961

Excess of revenue over expenses $ – $ –



Statement of Cash FlowsYear ended December 31, 2005, with comparative figures for 2004

2005 200�

Cash provided by (used in):Operating activities: Excess of revenue over expenses $ – $ – Items not involving cash: Amortization of capital assets 236,402 162,205 Amortization of deferred lease inducements (16,284) (13,268) Amortization of deferred contributions (19,748,570) (13,428,961) Changes in non-cash operating working capital items 182,481 75,042 (19,��5,971) (1�,20�,982)

Investing activities: Purchase of capital assets (78,551) (149,856) Purchase of investments (net) (196,975,815) (245,127,204) Investment income 17,331,660 9,308,946 (179,722,706) (2�5,968,11�)

Financing activities: Grant contribution 200,000,000 250,000,000 Increase in cash and cash equivalents 9�1,�2� 826,90�

Cash and cash equivalents, beginning of year 1,340,729 513,825

Cash and cash equivalents, end of year $ 2,272,052 $ 1,��0,729

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 .


2005 AR 27

Notes to Financial StatementsYear ended December 31, 2005

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, the Federal government provided additional funding of $200 million to the Foundation . This will expand the Foundation’s mandate to June 30, 2015 .



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 RateComputer hardware 30%Computer software 50%Office furniture and equipment 20%Leasehold improvements Term of lease

(c) 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 .

2005 AR 29


2. Investments:

2005 200� Market Value Book Value Market Value Book Value

Money market funds $ 24,540,787 $ 24,538,732 $ 29,041,431 $ 29,017,838Fixed income securities 514,146,825 516,521,115 317,410,313 315,066,194

$ 5�8,687,612 $ 5�1,059,8�7 $ ��6,�51,7�� $ ��,08�,0�2

(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 to be 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 .

�. Capital assets:

2005 200� Accumulated Net book Net book Cost amortization value value

Computer hardware $ 89,540 $ 51,558 $ 37,982 $ 27,779Computer software 159,160 135,425 23,735 64,187Office furniture and equipment 271,278 145,632 125,646 154,263Leasehold improvements 315,212 227,340 87,872 186,857

$ 8�5,190 $ 559,955 $ 275,2�5 $ ��,086

During the year, capital assets were acquired at an aggregate cost of $78,551 (2004 - $149,856) .Cost and accumulated amortization at December 31, 2004 amounted to $756,638 and $323,552, respectively .

�0 Partnering for real results .


�. 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:

2005 200�

Balance, beginning of year $ 345,137,887 $ 99,257,902 Grant received 200,000,000 250,000,000Investment income 17,331,660 9,308,946 562,�69,5�7 �58,566,8�8

Less amount amortized as revenue (19,748,570) (13,428,961)

$ 5�2,720,977 $ ��5,1�7,887

5. Commitments:During the year, the Foundation awarded grants for a maximum amount of $86 .7 million (2004 - $54 .2 million) . Total disbursements to eligible recipients during the fiscal year were $13 .3 million (2004 - $8 .6 million) . Since incorporation, the Foundation has awarded grants for a maximum of $168 .8 million, of which $24 .9 million has been disbursed as of the end of the fiscal year . The balance of the awarded grants will be recorded as expenses in subsequent years as funds are disbursed .

The Foundation has entered into commitments to sublease space for its Ottawa office location, and fund projects for the following gross amounts:

Projects Office Total

2006 $ 19,092,253 $ 212,661 $ 19,304,9142007 6,249,274 3,000 6,252,2742008 1,897,359 2,500 1,899,8592009 367,863 – 367,863 $ 27,606,7�9 $ 218,161 $ 27,82�,910

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 .

2005 AR �1


7. Subsequent events:On January 19, 2006, the Foundation entered into a long-term operating lease to rent office space at 45 O’Connor Street in Ottawa . The lease commences on July 1, 2006 and is for a term of 108 months . Future minimum lease payments are as follows:

2006 $ 206,6382007 413,2762008 413,2762009 413,2762010 413,2762011 and thereafter 1,943,190

$ �,802,9�2

Senior Management and Directors’ compensation*

In accordance with the Funding Agreement, SDTC Senior Management and Directors’ compensation for the fiscal year ending December 31, 2005, including salary, allowances and other benefits was within the annual compensation ranges listed below .

Positions Total annual compensation Additional performance based compensation**

President & CEO $ 220,000 – $ 260,000 $ 0 – $ 58,000Senior Vice President $ 155,000 – $ 185,000 $ 0 – $ 25,000Vice President $ 140,000 – $ 165,000 $ 0 – $ 15,000Directors - Management $ 95,000 – $ 115,000 $ 0 – $ 6,000

Chairman of the Board $ 12,000 stipend*** Directors of the Board $ 5,000 stipend***

* Note: This information is not part of the audited statements .** SDTC Management may receive a bonus .*** All Directors of the Board received a meeting fee of $550 per meeting . Effective June 2005 the meeting fee was increased to $1,500 for the Directors of the Board who sit on the Investment and Project Review Committees .

�2 Partnering for real results .

Board of DirectorsSDTC 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;

Retired President and CEO, Petro-Canada Chairman

T. M. (Mike) Apsey, C.M. Consultant, Forest and Trade Policy HRC

Dr. Francesco Bellini, O.C., O.Q., G.U. Chairman, President & Chief Executive Officer, Neurochem Inc .

Michael J. Brown Chairman of the Board, Chrysalix Energy Management Inc . PRC

Dr. Angus A. Bruneau, O.C. Chairman of the Board, Fortis Inc . PRC

Dr. Alain Caillé, FRSC Emeritus Professor - Université de Montréal CGC & HRC

Charles S. Coffey, O.C. Executive Vice President, Government Affairs & Business Development, RBC Financial Group HRC*

Professor David Johnston President, University of Waterloo AC

David Kerr Chairman, Falconbridge Ltd . AC*

Ken Ogilvie Executive Director, Pollution Probe PRC

Jane E. Pagel Vice President, Government and Corporate Affairs,

Jacques Whitford Ltd . PRC*

E.A. (Dee) Marcoux Director CGC & AC

Dr. Elizabeth Parr-Johnston President, Parr Johnston Economic and Policy Consultants CGC* & AC

David Pollock President, Pollock Advisory and Management Services, and former Executive Director, BIOCAP Canada and the Pembina Institute for Appropriate Development HRC

Dr. Jacques Simoneau President and Chief Executive Officer, Hydro-Québec CapiTech inc . AC

Committee Chair * Audit and Grant Investment Committee AC Corporate Governance Committee CGC Human Resources Committee HRC Project Review Committee PRC

The people of SDTC

This Annual Report is printed on paper containing post-consumer waste.

Sustainable Development Technology Canada230 Queen Street, Suite 250Ottawa, Ontario K1P 5E4

www.sdtc.ca

Telephone: 613 .234 .6313 Fax: 613 .234 .0303info@sdtc .ca

2005 AR ��

Member CouncilThe 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 Council members only .

Name Title

Pierre Alvarez President, Canadian Association of Petroleum Producers Mary Louise Bernard AFN Renewal Commissionaire, Assembly of First NationsCarl Brothers, P.Eng. General Manager, Frontier Power Systems Inc . James Knight CEO, Federation of Canadian MunicipalitiesHans R. Konow President and CEO, Canadian Electricity Association Dr. Louis LaPierre Professor Emeritus, Université de MonctonManon Laporte President and CEO, Enviro-Access Inc . Rita M. Mirwald* Senior Vice President, Corporate Services, Cameco CorporationMark Nantais President, Canadian Vehicle Manufacturers’ Association David Runnalls President and CEO, International Institute for Sustainable Development Dr. Indira Samarasekera, O.C.** Vice President, Research, University of British Columbia Andrew T.B. Stuart President and CEO, Sustainability Shift Inc . Katherine Trumper Management Consultant, Full Circle Architecture Judith A. Whittick President and CEO, C-COREDr. Joseph D. Wright President and CEO, Pulp and Paper Research Institute of Canada * Resigned in July 2005 . ** Resigned in January 2005 .

SDTC TeamSDTC 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, 2005 .

Name Title

Vicky J. Sharpe President & CEOMaria Aubrey Senior Vice President, OperationsStephane Chartrand Director, FinanceJohanne Dery Applications AdministratorAida Filipovic-Ouimet Manager, ProjectsKatherine Fleming Manager, ProjectsAshley Hannah Administrative Assistant, Office of the President and CEOSteve Higgins Manager, Corporate PerformanceDuane F. Holmes Manager, ContractsSabrina Kalapati Administrative AssistantBlaine Kennedy Manager, Screening and Evaluation (Renewable Energy and Industrial Utilization)Andrée Mongeon Director, CommunicationsRon Quick Manager, Screening and Evaluation (Hydrogen and Transportation)Matthew Rudenko Manager, ProjectsAngela Saddington Executive Assistant to Senior Vice-President, OperationsSailesh Thaker Vice President, Industry and Stakeholder RelationsSheila Schindel Manager, ApplicationsShanaz Sigouin Executive Assistant to the Executive TeamGertie Smedts-Baglin Records Administrator Diana Smithson Executive Assistant to the President and CEOZoltan A. Tompa Manager, ApplicationsKeith Watson Manager, Screening and Evaluation (Water and Soil)Rick Whittaker Vice President, InvestmentsPhilip Wong Manager, Screening and Evaluation (Oil and Gas)

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Documents

Clear Results. Clear Thinking. · Clear results . Clear thinking . “By bringing together the people with ideas, ... series of documents being developed to provide strategic insights