Plastics Challenge – Development of Next Generation Bio-Based Foam Insulation

From: Innovation, Science and Economic Development Canada

Natural Resources Canada (NRCan) is seeking the development of novel foam insulation products (spray foam and rigid foam board) that are bio-based (predominantly derived from domestic forest residue), and offer similar insulation values as petroleum-based products and are comparable in terms of cost.

Sponsoring department: Natural Resources Canada (NRCan)

Funding mechanism: Grant

Opening date: June 27, 2019
Closing date: August 27, 2019, 14:00 Eastern Daylight Time

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Challenge

Problem statement

The vast majority of foam insulation (rigid foam board and spray foam) are largely produced using petrochemical feedstocks. As such, they are produced from non renewable sources, emit significant greenhouse gas (GHGs) emissions during manufacturing and are difficult to recycle at end of life.

A few products on the market incorporate small quantities of bio-based material, up to 2% for "soy" spray foam and up to 25% lignin in IsoLignin polyurethane rigid foam.

NRCAN is seeking solutions that result in foam insulation products (either spray foam or rigid foam board) that: are predominantly derived from Canadian forest residue; have similar insulation values (within 20%) as currently available petroleum-based versions; would have similar cost (within 20%) as currently available petroleum-based versions; are less flammable than petroleum-based versions; are fully recyclable at end of life and, last but not least, would generate less (GHG) emissions during manufacturing.

Desired outcomes and considerations

Essential (mandatory) outcomes

Proposed solutions must:

  1. clearly indicate whether they will result in: A) bio-based spray foam insulation and/or B) bio-based rigid foam board.
  2. be predominantly bio-based (as close to 100% but not less than 60% by weight or volume) and derived from Canadian domestic forest residue
  3. have similar insulation values (for example closed cell spray foam R-value of 6.5 per inch) as petroleum-based versions (within 20%)
  4. have similar cost (within 20%) as currently available petroleum-based versions
  5. be non-flammable or considerably less flammable (at least twice as slow to ignite) than petroleum-based versions
  6. A. For bio-based spray foam insulation: proposed solutions must have the ability to be sprayed in place, similarly to currently available products.
    B. For bio-based rigid foam board: proposed solutions must have the ability to be extruded or shaped into rigid foam boards

Important:

  • Applicants may only submit one proposal for this challenge.
  • Applicants who choose to submit a proposed solution for spray foam insulation must explain in the ISC Application form in Section D, Question 1 (a), (Scope), how their solution meets all of the Essential (mandatory) outcomes, specifically 1 to 5 and 6A.
  • Applicants who choose to submit a proposed solution for rigid foam board must explain in the ISC Application form in Section D, Question 1 (a), (Scope), how their solution meets all of the Essential (mandatory) outcomes, specifically 1 to 5 and 6B.
  • Applicants who choose to submit a proposed solution that could be used for both spray foam and rigid foam board insulation must explain in the ISC Application form in Section D, Question 1 (a), (Scope), how their solution meets all of the Essential (mandatory) outcomes specifically 1 to 5, and 6A and 6B.

Additional Outcomes

Proposed solutions should:

  1. Be fully recyclable at the end of life,
  2. generate less GHG emissions during manufacturing.

Background and Context

  • In Canada and around the world, construction waste and plastic construction waste is a big problem.
  • According to Statistics Canada data, construction waste accounts for about 12% of all solid waste generated in Canada, most of which is currently disposed of in landfills.
  • We need new made in Canada solutions for making environmentally friendly construction products and for recycling/reusing them at end of life.
  • Living in Canada means often dealing with extremes, cold winters and hot summers. Insulation is essential for making our homes and buildings energy efficient and comfortable to live in.
  • Foam insulation, a type of plastic in foamed format, can be found in large rigid boards, or sprayed in place.
  • The Canadian Urethane Foam Contractors Association estimates that spray foam insulation is installed in between 300,000 to 400,000 Canadian homes every year, a number that has been growing by 30 to 40 percent every year over the last decade
  • Current foam insulation is made from petrochemicals, so non-renewable, generate significant GHG emissions during manufacturing, and are not easily recyclable at end of life.

Maximum value and travel

Multiple grants could result from this Challenge.

Funding of up to $150,000.00 CAD for up to 6 months could be available for any Phase 1 grant resulting from this Challenge.

Funding of up to $1,000,000.00 CAD for up to 2 years could be available for any Phase 2 grant resulting from this Challenge. Only eligible businesses that received Phase 1 funding could be considered for Phase 2.

This disclosure is made in good faith and does not commit Canada to award any grant for the total maximum funding value.

Travel

No travel is anticipated

Kick-off meeting

Teleconference/videoconference

Progress Review Meeting

Teleconference/videoconference

Final Review Meeting

Teleconference/videoconference

Eligibility

Solution proposals can only be submitted by a small business that meets all of the following criteria:

  • for profit
  • incorporated in Canada (federally or provincially)
  • 499 or fewer full-time equivalent (FTE) employeesFootnote *
  • research and development activities that take place in Canada
  • 50% or more of its annual wages, salaries and fees are currently paid to employees and contractors who spend the majority of their time working in CanadaFootnote *
  • 50% or more of its FTE employees have Canada as their ordinary place of workFootnote *
  • 50% or more of its senior executives (Vice President and above) have Canada as their principal residenceFootnote *

Application guide

Application guide

Evaluation Criteria

Part 1: Mandatory and Minimum Pass Mark Criteria

Proposals must meet all mandatory criteria (Questions 1a and 2) and achieve the minimum pass mark for Question 3 in order to be deemed responsive and proceed to Part 2.

Mandatory and Minimum Pass Mark Criteria (Applicant/Bidder's proposal must address)
Question Evaluation Schema

1 a. Scope

Describe your proposed solution and how it responds to the challenge. Include in your description the scientific and technological basis upon which your solution is proposed and clearly identify how your solution meets all of the Essential Outcomes (if identified) in the Desired Outcomes and Considerations section in the Challenge Notice.

Mandatory — Pass/Fail

Pass
The Applicant/Bidder's proposed solution is clearly articulated, within the scope for the challenge and addresses all Essential Outcomes (if identified) in the Challenge Notice.

Fail
There is little or no evidence that the proposed solution is likely to meet the challenge.
OR
The proposed solution is articulated as out of scope for the challenge.
OR
The proposed solution does not address all Essential Outcomes listed in the challenge.
OR
The proposed solution is poorly described and does not permit concrete analysis.

2. Current Technology Readiness Level (TRL)

  1. Indicate the current TRL of your proposed solution. (Drop Down Menu of the Application/Bid Submission Form)
  2. Describe the research and development activities that have taken place to bring the proposed solution to the stated TRL.

Mandatory — Pass/Fail

Pass: The Applicant/Bidder has demonstrated that the proposed solution is currently between TRLs 1 and 4 (inclusive), and provided justification by explaining the research and development (R&D) that has taken place to bring the solution to the stated TRL.

Fail: The Applicant/Bidder has not provided sufficient evidence to demonstrate that the current TRL is between 1 to 4 (inclusive) including:

  1. There is insufficient/no evidence provided for TRL judgment.
  2. The solution involves the development of basic or fundamental research.
  3. The solution is at TRL 5 or higher.
  4. Insufficient/unclear/no justification explaining the R&D that took place to bring the solution to the stated TRL.
  5. The explanation simply paraphrases the description of a given TRL level.

3. Innovation

Describe the novelty of your solution and how it advances the state-of-the-art over existing technologies, including competing solutions.

Point Rated with Minimum Pass Mark

The minimum pass mark for this criteria is 4 points.

0 points/Fail: The Applicant/Bidder has not demonstrated that the proposed solution advances the state-of-the-art over existing technologies, including available competing solutions; OR

The stated advancements are described in general terms but are not substantiated with specific, measurable evidence.

4 points:

  • The Applicant/Bidder has demonstrated that the proposed solution offers one or two minor improvements to existing technologies, including available competing solutions, that have potential to create competitive advantages in existing market niches.

6 points:

  • The Applicant/Bidder has demonstrated that the proposed solution offers three or more minor improvements to existing technologies, including available competing solutions, that together are likely to create competitive advantages in existing market niches; OR
  • The Applicant/Bidder has demonstrated that the proposed solution offers one significant improvement to existing technologies that is likely to create competitive advantages in existing market niches

8 points:

  • The Applicant/Bidder has demonstrated that the proposed solution offers two or more significant improvements to existing technologies, including available competing solutions that are likely to create competitive advantages in existing market niches and could define new market spaces; OR
  • The Applicant/Bidder has demonstrated that the proposed solution can be considered a new benchmark of state of the art that is clearly ahead of competitors and that is likely to define new market spaces

Part 2: Point-Rated Criteria

Proposals that do not achieve the overall minimum score of at least 55 points out of a possible 110 points (50%) will be declared non-responsive and given no further consideration.

The overall minimum score is determined by adding the Applicant/Bidder's scores from the following questions together (1b, 3, 4-13).

Point-Rated Criteria (Applicant/Bidder's proposal to address)
Question Evaluation Schema

1b. Scope

Describe how your proposed solution addresses the Additional Outcomes (if identified) in the Desired Outcomes and Considerations section in the Challenge Notice. If no Additional Outcomes are identified in the Challenge Notice, text entered in this section will not be considered.

If no Additional Outcomes are identified in the Challenge Notice, Bidders/Applicants will receive 10 points

  • Insufficient or no information provided to demonstrate that the solution will address any of the Additional Outcomes. 0 points
  • Information provided clearly demonstrates that the solution will address some (<50%) of the Additional Outcomes. 5 points
  • Information provided clearly demonstrates that the solution will address most (50% or more) of the Additional Outcomes. 8 points
  • Information provided clearly demonstrates that the solution will address all (100%) of the Additional Outcomes. 10 points

4. Phase 1 Science and Technology Risks

Identify potential scientific and/or technological risks to the successful development of the proof of concept and how they will be mitigated in Phase 1?

  • Insufficient or no information provided to demonstrate that the Applicant/Bidder has considered potential risks and mitigation strategies and/or information provided contains significant gaps. 0 points
  • Information provided demonstrates that the Applicant/Bidder has considered some potential risks and associated mitigation strategies but there are minor gaps in risks and/or associated mitigation strategies. 5 points
  • Information provided clearly demonstrates that the Applicant/Bidder has sufficiently considered the risks and defined associated mitigation strategies. 10 points

5. Benefits to Canada

Describe the benefits that could result from the successful development of your solution. Applicants/Bidders should consider the potential benefits using the following three categories:

  1. Innovation Benefits: Expected contribution towards the enhancement or development of new industrial or technological innovation within your firm. Assessment factors could include: potential spillover benefits, creation of intellectual property, impact on productivity of the new technology, etc.

  2. Economic Benefits: Forecasted impact on the growth of Canadian firms, clusters and supply chains, as well as its expected benefits for Canada's workforce. Assessment factors could include: number of jobs created, number of high-paying jobs, project-related revenue growth, etc.
  3. Public Benefits: Expected contribution to the broader public, including inclusive business and hiring practices (e.g., gender balance), investment in skills and training and environmental best practices. Assessment would consider the degree to which the Applicant/Bidder demonstrates that the solution is expected to generate social, environmental, health, security or other benefits to Canada. Assessment factors could include: solution-related environmental benefits, investment in local communities and solution-related impact on Indigenous communities.
  1. Innovation Benefits
    • Benefit not identified or insufficient claim of benefit. 0 points
    • Benefit has marginal increment or limited justification. 1.5 points
    • Benefit is significant and well justified. 3 points
  2. Economic Benefits
    • Benefit not identified or insufficient claim of benefit. 0 points
    • Benefit has marginal increment or limited justification. 1.5 points
    • Benefit is significant and well justified. 3 points
  3. Public Benefits.
    • Benefit not identified or insufficient claim of benefit. 0 points
    • Benefit has marginal increment or limited justification. 1.5 points
    • Benefit is significant and well justified. 3 points

6. Phase 1 Project Plan

Demonstrate a feasible Phase 1 project plan by completing the table.

Include:

  • Project milestones;
  • project activities under each milestone;
  • time required to complete each milestone (e.g., days, weeks and/or months);
    • (Indicate if any milestones and activities will be completed concurrently)
  • total time required to complete the project; and
  • key success criteria.

Note: Phase 1 cannot exceed 6 months and TRL 4.

  1. Insufficient or no information provided to demonstrate a feasible project plan for Phase 1 and/or the project plan exceeds the maximum duration indicated in the Challenge Notice. 0 points
  2. Project plan for Phase 1 is conceivably feasible but not clearly demonstrated and/or includes gaps. 5 points
  3. Information provided clearly demonstrates a feasible project plan for Phase 1. 10 points

7. Phase 1 Project Risks

Identify potential project risks (eg. Human resources, financial, project management, etc) to the successful development of the proof of concept and how they will be mitigated?

  1. Insufficient or no information provided to demonstrate that the Applicant/Bidder has considered potential risks and mitigation strategies and/or information provided contains significant gaps. 0 points
  2. Information provided demonstrates that the Applicant/Bidder has considered some potential risks and associated mitigation strategies but there are minor gaps in risks and/or associated mitigation strategies. 5 points
  3. Information provided clearly demonstrates that the Applicant/Bidder has sufficiently considered the risks and defined associated mitigation strategies. 10 points

8. Phase 1 Implementation Team

Demonstrate how your project implementation team has the required management and technological skill sets and experience to deliver the project plan for Phase 1 by completing the table. A member of the implementation team can have more than one role.

Include the labour rates and level of effort for each member. A day is defined as 7.5 hours of work, exclusive of meal breaks. The labour rates and level of effort will be reviewed as part of the evaluation for Question 10.

  1. Insufficient or no information provided to demonstrate that the project team has the required management and technological skill sets and experience to deliver the Phase 1 project plan. 0 points
  2. Information is provided but there are minor gaps in required management and/or technological skill sets and/or experience to deliver the Phase 1 project plan. 5 points
  3. Information provided clearly demonstrates that the project team has the required management and technological skill sets and experience to deliver the Phase 1 project plan. 10 points

9. Inclusivity

If your business were to receive funding from Innovative Solutions Canada, describe what actions (e.g., recruitment strategy, internships, co-op placements, etc.) might be taken in Phase 1 to support the participation of under-represented groups (e.g., women, youth, persons with disabilities, Indigenous people, visible minorities) in the research and development of the proposed solution.

Each bidder/applicant in their response to this question must focus only on describing relevant programs, policies, or initiatives that it currently has in place or would put in place to support the R&D effort in Phase 1. Do not provide any personal information of individuals employed by your company or that of your subcontractors in the response below.

  • No description and/or concrete examples of actions provided that would be taken to encourage greater participation of under-represented groups. 0 points
  • A description and concrete examples of actions to encourage greater participation of under-represented groups provided. 3 points

10. Phase 1 Financial Proposal

Demonstrate a realistic financial proposal for the Phase 1 project plan by completing the table.

  • Insufficient information provided and/or information provided significantly lack credibility. Does not demonstrate a realistic financial proposal for the Phase 1 project plan. 0 points
  • Information is provided but some costs appear to be either over or under estimated for the Phase 1 project plan. 5 points
  • Information provided contains credible elements to clearly demonstrate a realistic financial proposal for the Phase 1 project plan. 10 points

11. Phase 1 Financial Controls, Tracking and Oversight

Describe the financial controls, tracking and oversight that will be used to manage the public funds throughout Phase 1.

  1. Insufficient or no information provided to demonstrate the Applicant/Bidder's ability to manage public funds in Phase 1. 0 points
  2. Information provided is vague and/or contains gaps. The Applicant/Bidder has some controls, tracking and/or oversight in place to manage the public funds in Phase 1. 5 points
  3. Information provided clearly demonstrates that the Applicant/Bidder has strong financial controls, tracking and oversight to manage public funds in Phase 1. 10 points

12. Phase 2 Strategy

Describe a realistic strategy for the prototype development if selected to participate in Phase 2.

Responses should include:

  • anticipated barriers
  • key tasks
  • estimated cost
  • Insufficient or no information provided to demonstrate that the Applicant/Bidder has contemplated a realistic strategy for the Phase 2 prototype development. 0 points
  • Information provided demonstrates a conceivably realistic strategy for Phase 2 prototype development, however there are gaps and/or the strategy is vague. 5 points
  • Information provided demonstrates that the Applicant/Bidder has a clear and realistic strategy. 10 points

13. Commercialization Approach

Describe your overall commercialization approach for the proposed solution.

Responses should include:

  • Target markets (excluding Government of Canada)
  • Non-ISC funding sources
  • Transition to a commercially-ready product or service
  • Any other indicators of commercial potential and commercial feasibility
  1. Insufficient or no information provided to demonstrate that the proposed solution has commercial potential. 0 points
  2. Some information provided to demonstrate that the proposed solution has commercial potential, however there are gaps in the commercialization approach. 5 points
  3. A realistic commercialization approach is provided that demonstrates that the proposed solution has commercial potential. 10 points

Questions and answers

All incoming questions regarding this specific challenge should be addressed to solutions@canada.ca.

You can also consult the Frequently asked questions about the Innovative Solutions Canada Program.

A glossary is also available.

Is hemp a viable solution?

The challenge sponsoring department has indicated that the proposed solution would not be considered since the challenge seeks solutions that are, among other things, predominantly bio-based (as close to 100% but not less than 60% by weight or volume) and derived from Canadian domestic forest residue. Hemp would not meet the requirement of being from forest residue.

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