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 (CFS), 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 to establish a Clean Fuels Fund, to 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 the establishment of biomass supply chains to 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
Building out new, retrofitting, or expanding existing clean fuel production capacity.
Establishing biomass supply
Help establish biomass hubs to provide fuel producers with a reliable and timely supply of raw materials or feedstock in close proximity to production facilities.
Develop 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 have designed a distinct process with measures to increase Indigenous participation for all projects. We have launched a dedicated Request for Information for interested Indigenous parties to collect information, assess project readiness and gauge interest. This will be followed by a dedicated call for project proposals for projects led by Indigenous businesses and/or communities.Learn more about the request for information
Benefits of growing the clean fuels market
Seizing the opportunities for clean fuels to build a sustainable, low-carbon future that will support Canadians through:
Creating new clean fuels jobs across Canada in construction and operation, and providing job opportunities for workers in conventional energy sectors.
Opening new markets for conventional energy, agriculture and forestry, waste and clean tech companies, while becoming a strong industry for regional markets and international exports.
Helping drive down emissions in hard to abate sectors like oil and gas extraction, freight, and mining.
We’re taking an all of Government approach
Cementing clean fuels in Canada’s net-zero future will take an all of Government approach, using a comprehensive suite of measures. Here’s how Government is laying the foundation for our clean energy future.
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, utilisation 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 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, including 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 development of new ones, for the production, distribution and use of clean fuels, and 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, advising public sponsors on infrastructure priorities, and developing 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.
Email the Clean Fuels Program
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