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The Market Development Incentive Payments (MDIP) Fund


The MDIP Fund was established by the Governments of Canada and Alberta to develop and support the expansion of Alberta natural gas in Canada.

A major goal of the MDIP Fund is to undertake projects to demonstrate alternative applications of natural gas as well as their greenhouse gas (GHG) emission-reduction benefits over other fuels through two specific streams:

  • Transportation Stream: Canada's transportation sector accounts for approximately 25% of the nation's energy use and the vast majority of this energy (99%) is derived from conventional fossil fuels such as gasoline and diesel fuel. Alternative fuels, such as natural gas, have a lower carbon content relative to conventional fuels such as gasoline and diesel. The increased awareness and use of natural gas can contribute to a reduction in greenhouse gas emissions (GHGs) in the Canadian transportation sector.

The Transportation stream is now ready to accept project submissions for the establishment of a local support network.

  • Combined Heat and Power (CHP) Stream:
    Using natural gas to produce both heat and power for buildings reduces GHG and criteria air contaminants emissions when compared to the most efficient gas fired combined cycle plant and much more compared to coal generation.


The CHP stream is now ready to accept project submissions to Round 2 of the Request for Project Proposals, which demonstrate CHP applications.

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