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Clean Fuels Fund: Production Capacity Build-out Projects

Program Category: Clean Energy, Climate Mitigation
Program Sub-Category: Renewable Energy
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Status: Open

Funder

Natural Resources Canada (NRCan)

Deadline Details

The program is currently accepting proposals. The Program will accept applications on a continuous intake basis until March 31, 2030, or until all funds are allocated, whichever comes first.

Funder Organization Type

  • Federal Government

Canada is committed to achieving net-zero greenhouse gas emissions (GHG) by 2050 and reducing emissions by 40-45% below 2005 levels by 2030. A key piece of the existing program-based support to the sector is the Clean Fuels Fund (CFF), a $1.5B commitment, launched in 2021 to establish and grow the clean fuels sector in Canada. 

In a renewed commitment to Canadian clean fuel production, Canada's Budget 2024 announced a re-tooling of the Clean Fuels Fund program and a new call for proposals which would have a commissioning date of 2030.Contributions made under the re-tooled Clean Fuels Fund (CFF) will: 

  • increase domestic clean fuel production capacity, supporting jobs in Canada, and reducing reliance on imports 

  • enhance competitiveness of Canadian clean fuels 

  • enable greenhouse gas reductions

  • support compliance flexibility for regulated parties under federal regulations (e.g. Output-Based Carbon Pricing System Regulations, Clean Fuel Regulations).

Eligible activities under the Program includes:

  • Capital Projects – includes the expansion or conversion of existing clean fuel facilities, and buildout of new facilities in Canada

  • Production Facility Feasibility Assessments (Studies) – which include feasibility studies and front-end engineering design (FEED) studies related to the buildout or expansion of clean fuel facilities in Canada.

Projects that do not directly result in new clean fuel production capacity are not supported. For example, fuel storage, distribution pipelines, or systems that facilitate the integration of clean fuels into end-use applications are not within the scope of the program.

The program does not consider the end use of the produced fuels.

See the Applicant Guide for required Minimum Production Capacity Levels, Technology Readiness Level, and Maximum Carbon Intensity.  

Eligible Community

To be considered for funding under the Program, applicants must be a legal entity validly incorporated or registered in Canada including not-for-profit and for-profit organizations, such as but not limited to:

  • Indigenous organizations and Indigenous communities
  • electricity or gas utilities

  • private sector companies

Funding Stacking Restrictions

Yes

Total Canadian government (includes federal, provincial, territorial, and municipal governments) contributions may not exceed 75% of total project costs, except in the case where the recipient is a provincial, territorial, regional, or municipal government or their department or agency, Indigenous business or community, or not-for-profit, in which case, the total Canadian government funding authorized will not exceed 100% of total project costs.

Other Eligible Applicants

Businesses / For-profit
Indigenous Organizations

Type of Funding

  • Non-repayable Contribution

Range of Funding Available per Project

  • Under $100 000
  • From $100 000 to $1 000 000
  • Over $1 000 000

Description of Funding

  • For capital projects the Program will provide up to 30% of total project costs up to a maximum of $50M

  • For studies the Program will provide up to 75% of total project costs up to a maximum of $5M

The Program will offer two types of contributions, depending on the type of project to be funded:

  • Conditionally repayable contributions for capital projects

  • Non-repayable contributions for:

    • feasibility and FEED studies

    • projects with non-profit organizations

    • projects with legal entities validly incorporated or registered in Canada that can demonstrate Indigenous ownership of the organization greater than 50% and who do not permit dividends to be paid or distributed to shareholders.

Eligible Costs

Engineering
Planning
Operational and Maintenance Costs
Capital Costs
Equipment/Material Purchase
Project Management
Staff Costs
Administration Fees

Eligible expenditures must be directly related to the project and in support of the project’s activities. These expenditures should be incremental to normal operations and would typically not continue after the project completion date.

Eligible expenditures include:

  • Salaries

  • Benefits

  • Professional Services

  • Reasonable travel costs

  • Capital expenses

  • Rental fees and leasing costs

  • License fees and permits

  • Costs associated with Environmental Impact Assessments

  • Overhead expenses

 

See the Applicant Guide for full details on eligible costs. 

Ineligible Costs

Any costs incurred prior to signing a funding agreement
Land Acquisition

Costs that are not accepted by the Program are costs that are not eligible for reimbursement and cannot be included in the total project costs. This includes but is not limited to

  • purchase of land

  • fines and penalties

  • lobbying activities for the purposes of obtaining contribution funding under the Program

The following costs could be counted toward total project costs but not eligible for reimbursement.

  • costs incurred between the date the Letter of Conditional Approval (LOCA) is issued and the day before the contribution agreement is signed.

  • in-kind contributions