Biofuels Production Incentive

Open

Accepting applications on a continuous intake basis until December 31, 2027.

Canada’s biodiesel and renewable diesel subsector has been under increasing competitiveness challenges from changes in policy and resulting market dynamics. The Biofuels Production Incentive is designed to protect the resiliency of domestic producers to stabilize this important sector and preserve its potential for growth.

The Incentive will provide a tiered per-litre incentive structure providing support for eligible fuel produced in the 2026 and 2027 calendar years and will prioritize the use of North American feedstocks and sale of the fuel into the Canadian market.

Additionally, the incentive provided will be non-repayable. These measures will help accelerate the growth and development of the domestic biofuels industry.

Funding

Funding stream - Biofuels Production Incentive

Open

Funding for existing biodiesel and renewable diesel producers

Who can apply

To be considered for funding under the Incentive, an applicant must be a legal entity validly incorporated or registered in Canada including not-for-profit and for-profit organizations who is currently a producer of biodiesel and renewable diesel eligible to create credits under the Clean Fuels Regulations that uses North American feedstocks and sells the fuel produced to the Canadian market.

Program benefits

Funding the existing production of biodiesel and renewable diesel will:

  • assist existing biodiesel and renewable producers to remain operational, protecting jobs throughout the clean fuel supply chain
  • stabilize biodiesel and renewable diesel production, boosting the value of Canada’s clean fuels sector
  • lessen reliance on imports, which will help increase Canada’s energy security

Request the applicant’s guide and form

To request the Applicant’s Guide and Form, please email the program at bpi-ipb@nrcan-rncan.gc.ca.

Contact us

Email the Biofuels Production Incentive at bpi-ipb@nrcan-rncan.gc.ca.