Funding for Indigenous-led clean production capacity projects
Program Category:
Clean Energy, Sustainable Transportation
Program Sub-Category:
Renewable Energy
Status: Open
Funder
Natural Resources Canada (NRCan)
Deadline Details
Applications will be accepted until funding is no longer available.
Funder Organization Type
- Federal Government
Canada’s clean fuels industry must immediately, and significantly, increase its current capacity to play the critical role needed in our net-zero future. To do this, it will be essential to overcome the barrier of the upfront capital cost that private sector investment faces in the buildout of new clean fuels production capacity.
To that end, the Clean Fuels Fund will provide the private sector with cost-shared, conditionally repayable funding to build new, or retrofit or expand existing, clean fuel production facilities in Canada.
Support is also available for feasibility studies, basic engineering studies and detailed front-end engineering studies for new facilities, facility expansions or facility conversions.
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 funding of Indigenous-led clean production capacity projects in Canada.
Eligible Community
To be considered for funding under the Program, applicants must be one of the following:
- Legal entities validly incorporated or registered in Canada including not-for-profit and for-profit organizations that can demonstrate a minimum of 50% Indigenous ownership, which can include:
- Indigenous Communities
- Indigenous Businesses
- Development corporations
- Electricity or gas utilities
- Private sector companies
- Industry associations
- Research associations
- Academic institutions
Funding Stacking Restrictions
Yes
Total Canadian government contributions may not exceed 75%, except in the case where the recipient is an Indigenous owned business or community, not for profit organizations, a provincial, territorial, regional, or municipal government or their department or agency, in which case, the total Canadian government funding authorized will not exceed 100% of total project costs.
Specific Eligibility Requirements
To be considered for funding under the Program, projects must satisfy all of the following:
- All of the mandatory project eligibility criteria listed below;
- Provide all mandatory information and documentation listed throughout this Guide; and
- Demonstrate that investments will be used to undertake projects in Canada.
Eligible Activity
- Production Projects: Eligible production projects include the build-out of new, or expansion of existing, clean fuel production capacity and facility conversions. Please note that production projects may be conditionally repayable as outlined in Section 13 of this guide.
- Feasibility Projects: Eligible studies include feasibility studies, basic engineering studies and detailed front-end engineering studies for new facilities, facility expansions or facility conversions. In addition, due to the strong synergies between hydrogen and natural gas, feasibility studies to assess the techno-economic feasibility of blending hydrogen into natural gas systems would be eligible. Please note that feasibility projects are non-repayable.
Eligible Fuel Types
- Eligible liquid or gaseous clean fuels include but are not limited to: hydrogen, ethanol, renewable diesel, co-processing of biocrude, sustainable aviation fuel, synthetic fuel, renewable natural gas, methanol, and ammonia.
Technological Readiness Level
- Production projects must use, and feasibility projects must assess, fuel production technologies in advanced stages of technological readiness (TRL 9) and that are designed for commercial deployment, with the intent to operate the technology at commercial scale during its life cycle.
Minimum Production Capacity Thresholds
- This Program targets commercial-scale projects in advanced states of technological readiness. As such, the Program has set a minimum production capacity threshold for liquid fuel facilities, renewable natural gas and hydrogen facilities eligible for both production and feasibility projects. Please contact Natural Resources Canada for more information.
Maximum Carbon Intensity
- The eligibility of clean fuel types supported under this part of the program will depend on the fuel’s life cycle carbon intensity. The Program defines an eligible clean fuel as follows:
- Carbon intensity of eligible liquid clean fuels must be equal to or below 50 gCO2e/MJ.
- Carbon intensity of eligible gaseous clean fuels must be equal to or below 36 gCO2e/MJ.
Commissioning and Project Completion Date
- Feasibility Projects must be completed by no later than March 31, 2026.
- Production Projects must demonstrate an official commissioning date of no later than March 31, 2026.
- End to End Projects must demonstrate an official commissioning date for the production facility build-out project of no later than March 31, 2026.
Other Eligible Applicants
Indigenous-owned BusinessesBusinesses / For-profit
Other
Indigenous Organizations
Academic Institutions
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 Production Projects the Program will provide up to 50% of total project costs to a maximum of $150M. At the time of application, applicants must demonstrate that• A minimum of 25% of total project costs have been secured through firm financing.• No more than 25% of total project costs are yet to be secured.
Project contributions for Production Projects will be conditionally repayable, except for:• Projects with not-for-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.
For Feasibility Projects the Program may provide up to 75% of total project costs to a maximum of $5M. At the time of application, applicants must demonstrate that:• A minimum of 25% of total project costs have been secured through+ firm financing
Percentage of Project Funded
50%Eligible Costs
EngineeringDesign
Planning
Operational and Maintenance Costs
Capital Costs
Equipment/Material Purchase
Project Management
Staff Costs
Administration Fees
Research and Development
Natural Resources Canada will reimburse recipients for eligible expenses the recipient has incurred starting on the date of execution of the Contribution Agreement.
Ineligible Costs
Any costs incurred prior to signing a funding agreementLand Acquisition
Non-eligible expenditures are expenditures that may be eligible for consideration of total project costs, but are not eligible for reimbursement from the Program
Additional ineliglbe costs include...
• Fines and penalties
• Lobbying activities for the purpose of obtaining contribution funding under the Program
• Lobbying activities for the purpose of obtaining contribution funding under the Program
Reporting Requirements
Progress reports and final reports