Clean Fuels Fund: Funding for Indigenous-led clean production capacity projects

Program Category: Clean Energy, Sustainable Transportation

Program Sub-Category: Renewable Energy

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Status: Open

Funder

Natural Resources Canada (NRCan)

Deadline Details

Applications will be accepted until funding is no longer available.

Funder Organization Type

Federal Government

Natural Resources Canada continues to advance meaningful reconciliation with Indigenous Peoples and collaborated with Indigenous communities and partners to foster constructive dialogue to further develop initiatives. In a renewed commitment to Canadian clean fuel production, Budget 2024 announced a re-tooling of the Clean Fuels Fund program and a new call for proposals which includes a separate stream for Indigenous-led Projects to encourage Indigenous entrepreneurship in the clean fuels space. 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 Indigenous-led Projects stream 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 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.

Only one organization can be designated as the recipient of CFF funding. For joint ventures, consortiums, or the like, the applicant organization will become the legal signatory to the funding agreement and will be responsible for managing the project and reporting on results.

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.

Other Eligible Applicants

Indigenous-owned Businesses
Businesses / 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 capital projects, the Program will provide up to 50% of total project costs up to a maximum of $50MFor studies, the Program will provide up to 75% of total project costs up to a maximum of $5MThe Program will offer two types of contributions, depending on the type of project to be funded: Conditionally repayable contributions, and Non-repayable contributions.

Eligible Costs

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

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

Reporting Requirements

Progress reports and final reports