The Ontario Clean Technology Advantage May 2012

A two-hour flight from many major U.S. cities

Knowledge | Innovation | Technology 3 Zoom in on the Ontario Clean Technology Alliance

Top 10 reasons to invest in Ontario 1. Stable, highly talented, motivated workforce 2. Access to the North American market (NAFTA) 3. Openness to diversity and multiculturalism 4. Economic engine of Canada 5. World class research institutions 6. Innovation leadership 7. Low risk business environment 8. Superior infrastructure 9. Business incentives 10. Quality of life Knowledge | Innovation | Technology 4

By 2015, 75,000 highly skilled people will be working in Canada’s clean technology industry, with the vast majority in Ontario Ontario supports over 2,400 environmental industry companies that generate over 8 billion annually Ontario is a clean technology demonstration hub for the North American market The Ontario Clean Technology Alliance is well positioned to lead Canada’s clean technology industry, projected at $60 billion by 2020 Ontario’s clean technology advantage Knowledge | Innovation | Technology 5

In support of new job creation, Ontario’s colleges and universities have introduced new programs related to the clean energy economy, including: Wind turbine technician training Green business management Renewable energies technician training Sustainable energy and building technology Clean and renewable energy engineering technology Ontario’s clean technology advantage includes advanced skills training Knowledge | Innovation | Technology 6

Hamilton: Samuel, Son & Co., steel and aluminum components Waterloo Region: Enermodal Engineering, green building consulting Windsor-Essex: CS Wind Corp., wind tower manufacturer London: KACO New Energy Inc., solar inverters Sarnia-Lambton: BioAmber Biosuccinic Acid Plant, North America’s 1 st Guelph: Canadian Solar Inc., solar module components Niagara Region: DMI Canada Inc., wind tower manufacturer Chatham-Kent: Mecasolar, solar tracking systems SOMA: Siemens Canada Ltd., wind turbine blade manufacturer Greater Toronto Area: General Electric, Smart Grid innovation centre Ottawa: Plasco Energy Group, green power from household waste Knowledge | Innovation | Technology Ontario Clean Technology Alliance success stories 7

8 Knowledge | Innovation | Technology Canada ranks #1 for business!

Knowledge | Innovation | Technology In 2012 the combined federal- provincial corporate income tax averages 26% – 13 points less than the U.S. rate By 2015 tariffs on all manufacturing inputs reduced to zero, creating a national Free Trade Zone Most of Canada’s population of 34.7 million people live within 200 kilometers of the United States Accumulated Foreign Direct Investment (FDI) into Canada reached $562 billion in 2010 Canada – a sound choice for new investment and trade 9

Canada also has the: World’s soundest banking system Lowest taxes on new business investment in the G7 Among the lowest R&D costs in the G7, 12.9% lower than the U.S. Tax credits can save foreign investors, on average, up to 30 cents on the dollar invested in R&D in Canada It takes only one procedure and five days to register a new company in Canada Canada has a low-risk business and regulatory environment Knowledge | Innovation | Technology 10 Standing among 142 countries. Ranking based on the degree of soundness of financial institutions. Source: Global Competitiveness Report,

Ontario clean technology R&D and tax incentives include: Knowledge | Innovation | Technology Ontario Business Research Institute Tax Credit (OBRITC) Ontario Innovation Tax Credit Ontario Power Authority Feed-in Tariff Program Ontario Emerging Technologies Fund Ontario Innovation Demonstration Fund Ontario Power Authority Conservation Fund More listed at 11

Ontario’s NAFTA advantage Knowledge | Innovation | Technology What this means for your company: New market opportunities – access to over 450 million consumers in North America New partnerships New investors New links in supply and production chains New choices for consumers Economic growth 12

Ontario’s wind power advantage Knowledge | Innovation | Technology Ontario is the largest producer of wind energy in Canada Ontario has over 1,950 MW of installed capacity (as of Jan 2012) In 2011 alone, Ontario installed over 500 MW of new capacity Ontario is expected to install more than 5,600 MW of new wind energy capacity by 2018 By 2018 Ontario will have attracted $16.4 billion in private investment Ontario’s existing infrastructure helps with both supply of components and transmission of energy 13

Ontario’s Feed-In Tariff Program Knowledge | Innovation | Technology In 2012 the Ontario’s Feed-in Tariff (FIT) Program had its 2-year review The program has created more than 20,000 jobs, and is on track to create 50,000 jobs and attract over $27 billion in private-sector investment A North American leader in clean energy, Ontario has 2,000 current FIT contracts representing over 4,600 MW of generated power In 2012, another 2,900 MW of FIT projects are currently moving through environmental approvals The province of Ontario is forecasted to generate 10,700 MW of non- hydro renewable energy generation by

15 Knowledge | Innovation | Technology Global market potential for smart grid solution providers is expected to range from $15 to $31 billion annually by 2014 In 2011 Ontario launched a $50 million Smart Grid initiative GE invested $40 million in a smart grid technology centre in Markham, Ontario, that will focus on researching, developing and manufacturing grid modernization techniques Ontario’s Smart Grid opportunity Talk to Ontario Clean Technology Alliance members about the advantages of locating smart grid industry and service providers in this province!

Knowledge | Innovation | Technology Ontario borders four of five Great Lakes in North America, has more than 250,000 other lakes, countless rivers and rich groundwater resources Ontario’s water industry companies employ approximately 22,000 people and sell technologies and services around the world A global centre for water-related patent activity, especially membrane separation, filtration and flocculation technologies Ontario’s environmental strengths include water conservation as well as water and wastewater treatment technologies Companies rely on leadership from the Ontario Government in regulations, standards, source water protection, watershed management and water efficiency. The Water Opportunities and Water Conservation Act builds on Ontario’s expertise in water protection services and technology 16 Ontario’s clean water advantages

Knowledge | Innovation | Technology Federal Government Southern Ontario Development Program funding: $19.5 million Project valued at $50 M Eight Ontario universities participating 60 private sector partners Consortium aims to develop and independently validate new and existing technologies and demonstrate full-scale operational equipment 17 Southern Ontario Water Consortium

Knowledge | Innovation | Technology London’s Water Validation Testing Centre enables real time, full-scale tests of new technologies to make waste water into potable water Hamilton Water/Wastewater Demonstration and Training Centre offers pilot facilities to support and improve water and wastewater technologies – includes the Hydromantis SimuWorks, a state of the art development platform The University of Waterloo is home to The Water Institute – a hub facilitating innovative research, education and training and a host to nine other centres and institutes – including the Canadian Water Network. The Institute was created to sustain Canada’s water supply, while meeting the demands of industrial and community users 18 More of Ontario’s clean water R&D project highlights

Ontario’s solar advantage Knowledge | Innovation | Technology Ontario is home to the 10 largest solar farms in Canada and is the leading generator of photovoltaic power in Canada Ontario wind and solar energy generated more electricity for the province than coal did in 2011 By 2018, Ontario’s solar PV market is expected to drive$12.9 billion of total private investment and create over 74,000 jobs 19

International Airports: Toronto Pearson Ottawa Macdonald-Cartier Hamilton The Region of Waterloo St.Catharines/Niagara District Windsor London Sarnia Guelph Ontario offers excellent air travel options Knowledge | Innovation | Technology 20

Largest and busiest freeway network in Canada Efficient 400-series highways and municipal expressways Ports connect major manufacturing, processing, transportation services and logistics expertise Well developed highway, rail, and shipping Knowledge | Innovation | Technology 21

GO Transit interregional public transit system carries 50 million/passengers/year The Corridor, a VIA Rail passenger train service area The Toronto Transit Commission’s (TTC) subway system, linked with buses, hybrid buses and streetcars carries ~ 1.5 million riders/day Established mass transit system Knowledge | Innovation | Technology 22

One of the most extensive and integrated telecommunication networks in North America The largest “free calling” area in North America 100% Digital Telecom Infrastructure High speed data services Internet connectivity E-business services Highly integrated telecommunications network Knowledge | Innovation | Technology 23

Greater Toronto Area (GTA) The largest city-region in Canada Generates 1/5 th of Canada’s GDP Home to 40% of Canada's headquarters 5 universities and 6 colleges A skilled workforce comprised of approximately 3 million people Knowledge | Innovation | Technology 24

Ottawa: the creative economy capital Knowledge | Innovation | Technology Home to over 130 clean technology companies with about 3000 employees 40 scientific research labs and organizations including CANMET Energy Technology Centre (CETC) Companies include: Cyrium (clean tech solar), Plasco (green power) Highest percentage of university graduates in the country 5 universities and 3 colleges 25

Knowledge | Innovation | Technology Over 510,000 people – with access to a labour market of over 2 million Home to Mohawk College & McMaster University – leads the NSERC Photovoltaic Innovation Network The Port of Hamilton – Largest on the Canadian Great Lakes Well-established supply chain of manufactures and service providers Quality Water and Wastewater Demonstration and Training centre Hamilton: global centre for clean technology excellence 26

Waterloo Region – Canada’s Technology Triangle 20 Knowledge | Innovation | Technology Home to Canada’s 1 st solar neighbourhood Diverse economy (IT, manufacturing, R&D and insurance) Talented labour force supporting RIM (BlackBerry), Toyota, Canadian Solar, Photowatt, Arise Technologies Renewable energy research and programming at three post-secondary institution Diverse. Innovative. Entrepreneurial.

Think Niagara, Think Original! Strategic location with multi-modal transport network R&D: Class 100 print and fire lab- Wavelength selective thin film solar cell Partnerships: Niagara-Port Colborne Wind Energy Manufacturing Cluster Initiative Established supply chain in advanced manufacturing Highly skilled, well-educated workforce >200,000 Knowledge | Innovation | Technology 28

Renewable energy hub: 17 companies employing over 1000 people in 2012 Busiest Can/U.S. border crossing Solar PV potential of kWh/kW, wind potential of 5-6 m/sec Integrated local supply chain New investments: CS Wind, HHV, Schletter, Windtronics, Youil, HUCH Diversification of existing companies into renewable energy industry Windsor-Essex: growth, prosperity, sustainability Knowledge | Innovation | Technology 29

London: a world of opportunities Knowledge | Innovation | Technology Revolutionary WindEEE Dome is world’s first 3D wind chamber, can produce any type of wind system, and is capable of testing and assessing city blocks, wind farms, transmission lines and solar panels Fraunhofer International Composites Research Centre Diverse economy plus talented and loyal workforce 30 WindEEE Dome conceptual design

Sarnia-Lambton: powering a sustainable world US border location: with easy access via highway, rail, and deep water port Bio-industrial Park and Energy Park with marine terminals Bio-industrial Innovation Centre, University of Western Ontario and Lambton College offer alternative energy and process technologies programs Highly skilled workforce, low cost of living, modern community Knowledge | Innovation | Technology 31

Guelph: a city making a difference Growing economic area of over 120,000 people Established manufacturing supply chain base Close to planned Ontario renewable energy projects Access to talent/R&D at local and area universities/colleges Commitment to renewable energy through Community Energy Initiative Knowledge | Innovation | Technology 32

Municipality of Chatham-Kent: a winning proposition for your business! Easy access to international transportation markets Excellent wind and solar resources Well educated, available workforce Significant cluster in manufacturing and power Local and area universities and colleges with programs supporting industry Unbeatable quality of life and low cost of living Knowledge | Innovation | Technology 33

Southwestern Ontario Marketing Alliance (SOMA) − partnership in action! Strategic location in Ontario’s heartland of prosperity Excellent wind and solar resources Sponsors skills development in workforce Removes barriers to business and industrial growth Over 200 green manufacturers and service providers within seven municipalities Knowledge | Innovation | Technology 34

Ontario offers openness to diversity and multiculturalism Knowledge | Innovation | Technology 35

Excellent culture and sports facilities Knowledge | Innovation | Technology 36

Canada is a constitutional monarchy Canada has a three-tiered system with Federal, Provincial, and Municipal levels of government Municipal governments are under provincial jurisdiction and governed by an elected mayor and council Safe, stable, and well governed Knowledge | Innovation | Technology 37

Low crime Highly stable Little threat from terrorism Highly developed infrastructure Ontario cities and towns offer a superior lifestyle Knowledge | Innovation | Technology Canada has the most liveable destinations in the world! Economist Intelligence Unit (EIU) 38

Speak to an Ontario Clean Technology Alliance member to find out how Ontario’s advantages can support your business. More information at: Get to know us! Ontario’s clean technology advantage Knowledge | Innovation | Technology 39

The Ontario Clean Technology Advantage May 2012