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Clean Fuels Fund

Canada’s economy will need to be powered by clean power and clean fuels to meet its goal of net-zero emissions by 2050

Fuelling the future

Recognizing the essential role of clean fuels, Canada’s Strengthened Climate plan includes broad economic policies, such as the proposed Clean Fuel Standard, increases to the carbon pollution price, the Hydrogen Strategy for Canada, and investments to grow the clean fuels market.

This commitment was re-affirmed in Budget 2021 with an investment of $1.5 billion over five years. This money will establish a Clean Fuels Fund, that will de-risk the capital investment required to build new or expand existing clean fuel production facilities (including facility conversions). Support is also available for feasibility and front-end engineering and design (FEED) studies and for establishing biomass supply chains.

The supply chains will improve logistics for the collection, supply, and distribution of biomass materials (e.g. forest residues, municipal solid waste, and agriculture crop residues) as a feedstock in clean fuel production facilities. Resources are also available to address gaps and misalignment in codes, standards and regulations related to the production, distribution and end use of clean fuels.


Building new domestic
production capacity

The call for project proposals closed on October 13, 2021.

Build new or retrofit or expand existing clean fuel production capacity.


Establishing biomass supply
chains

The call for project proposals will open spring 2022.

Help establish biomass hubs to provide a reliable and timely supply of raw materials or feedstock in proximity to production facilities.


Developing enabling codes and standards

Help develop enabling codes and standards to support the evolution of new clean fuels technologies as they enter the market.

Opportunities for Indigenous-led clean fuel projects

We recognize the unique opportunity clean fuels present for Indigenous businesses and communities and encourage Indigenous participation on all projects. We held a dedicated Request for Information for interested Indigenous businesses and communities to collect information, assess project readiness and gauge interest.

Using that feedback, we have designed a process to increase Indigenous participation for all projects.

NEW! Funding for Indigenous-led projects to build clean fuels production capacity

  •  Applications will be accepted until funding is no longer available
 

The evaluation process

below info

1. Completeness Review

The Program reviews applications to ensure all required mandatory information has been included in the application package and ensures there were no technical/systemic issues with attachments.

Applicants who have submitted packages deemed incomplete will receive a notice that no further consideration will be given to their application.

2. Mandatory Criteria Review

The Program assesses the applications deemed complete against mandatory criteria as outlined in the program guide.

Applicants whose projects meet mandatory criteria will receive a notice indicating that their application will be fully assessed by the Evaluation Committee.

Applicants whose projects do not meet mandatory criteria will receive a notice that no further consideration will be given to their application.

3. Evaluation Committee

A multi-disciplinary, multi-department Evaluation Committee, composed of technical and financial experts, assess applications that meet all mandatory criteria, and rate them against the program’s merit criteria grid. Once all applications are assessed, the Evaluation Committee prepares the strategic funding recommendations that takes into account application scoring and other criteria to ensure program goals/targets are met.

4. Investment Committee Validation

The Investment Committee, composed of Director Generals from multiple government departments, reviews and validates the strategic funding recommendations ensuring the recommendations align with the Program’s key objectives, and endorses the recommended projects for final approval.

5. Final Project Decision

Recommended projects are reviewed and approved for funding by the Program’s delegated authority.

Applicants of projects approved for funding will receive a Letter of Conditional Approval and negotiation of a contribution agreement can commence.

Applicants who’s projects meet/exceed the established merit threshold, yet do not rank high enough to access the funding available, will receive a Letter of Regret that includes a statement notifying applicants that should additional funding become available in the future the project may be given further consideration.

Applicants, whose projects do not meet the established merit threshold, will receive a Letter of Regret.

 

Benefits of growing the clean fuels market

Growing the clean fuels market will seizing the opportunities for clean fuels to build a sustainable, low-carbon future that will support Canadians through:

Jobs

Creating new clean fuels jobs across Canada in construction and operation, and providing job opportunities for workers in conventional energy sectors.

Economic opportunities

Opening new markets for conventional energy, waste, and cleantech companies, and for agriculture and forestry while becoming a strong industry for regional markets and international exports.

Environmental benefits

Helping reduce emissions in hard-to-abate sectors such as oil and gas extraction, freight, and mining.

Video Transcript

Canada’s net-zero future will be powered by clean power and clean fuels.

We are on our way.

More than 80% of Canada’s electricity comes from clean sources.

Clean fuels like biofuels and hydrogen make up 5% of Canada’s energy supply today but they could make up nearly 60% by 2050.

Producing and using more clean fuels in Canada will help decarbonize transportation and industries like steel and cement making all while keeping energy jobs in Canada.

That’s why the Government of Canada is launching the Clean Fuels Fund

Helping Canada remain an energy supplier of choice in a low-carbon future.

Find out more – nrcan.gc.ca/clean-fuels-fund

We’re taking an all-of-government approach

Including clean fuels in Canada’s net-zero future will take an all-of-government approach, using a comprehensive suite of measures. Here’s how the government is laying the foundation for our clean energy future.

Energy Innovation Program, Clean Fuels and Industrial Switching : We’re providing funding to advance technological solutions to reduce emissions in industrial fuel switching and the production of clean fuels. New technological solutions in these sectors are critical to address hard-to-abate segments of industrial emissions and create pathways for the use of cleaner fuels.

Hydrogen Strategy for Canada: A framework to power Canada’s low-carbon energy future while positioning us to become a world leader in hydrogen technologies.

Carbon capture, utilization and storage strategy (CCUS): Leading the development of a federal strategy that will enable the Canadian CCUS industry to realize its GHG reduction and commercial potential.

Clean Fuel Standard: This standard is part of Canada’s climate plan to reduce emissions, accelerate the use of clean technologies and fuels, and create good jobs in a diversified economy and across multiple sectors. These sectors include clean technology, agriculture, and low-carbon energy sectors, such as biofuels and hydrogen.

Regulatory Co-operation on Codes and Standards for Low Carbon Fuels in transportation: Governments and industry in Canada and globally are supporting the alignment of codes and standards and the development of new ones, for the production, distribution and use of clean fuels and the electrification of transportation.

Canada’s Infrastructure Bank - Zero Emission Bus Program: The bank is investing $35 billion to attract substantial private and institutional investment in new infrastructure, advise public sponsors on infrastructure priorities, and develop a centre of expertise.

Carbon Pollution Pricing: Canadians see the costs of a changing climate all around us. Climate change is driving stronger storms, wildfires, and record-breaking heat waves. Taking climate action is an enormous opportunity to create jobs and advance economic growth, save households money by increasing their home’s energy efficiency, and ensure the air we breathe is clean and healthy.

Strategic Innovation Fund Net Zero Accelerator: Making sure Canada is a top destination for businesses to invest, grow, and create jobs and prosperity for Canadians is one of the Government's top priorities. The Strategic Innovation Fund's objective is to spur innovation for a better Canada by providing funding for large projects.

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