Advanced Materials for Energy and Defence – Call for proposals applicant guide

Contents

• 1. Objectives
  • 1.1 Office of Energy Research and Development
  • 1.2 Energy Innovation Program: Advanced materials for energy and defence call for proposals
  • 1.3 Call objectives
• 2. Eligibility
  • 2.1 Eligible Canadian recipients
  • 2.2 Eligible projects
• 3. Preferred selection criteria
  • 3.1 Guidance for project alignment with Call objectives and eligibility criteria
  • 3.2 Guidance for non-technical project elements
• 4. Funding and support
  • 4.1 Contributions
  • 4.2 In-kind contributions
• 5. Timelines
• 6. Application process
  • 6.1 How to apply
  • 6.2 Applicant portal
  • 6.3 Contact us
  • 6.4 Next steps
• Annex
  • 1. Eligible, ineligible, and non-permissible expenditures
  • 2. Definitions
  • 3. Eligible expenditures – Costing memorandum
  • 4. In-kind contributions – Costing memorandum
  • 5. Reporting requirements
  • 6. Regulatory, reporting, and other requirements
  • 7. Technology readiness levels
  • 8. Disclaimer

1. Objectives

1.1 Office of Energy Research and Development

Leveraging over 50 years of experience and unique science and technology expertise, the Office of Energy Research and Development (OERD) leads the Government of Canada’s efforts in energy innovation and invests in the most impactful energy research, development, and demonstration (RD&D) projects that maximize environmental and economic outcomes. OERD’s programs target these four missions to realize a clean energy future and a sustainable natural resources sector: improve energy efficiency and processes to reduce emissions from energy end-use; accelerate electrification and maximize benefits of renewable heat and power; develop cleaner fuels pathways; and reduce reliance on diesel in rural, remote, and Indigenous communities. It invests in a wide range of organizations, including businesses, industry, non-profits, academia, other levels of government, and Indigenous organizations and funds energy research and development (R&D) in federal labs and research centres.

1.2 Energy Innovation Program: Advanced materials for energy and defence call for proposals

As part of Budget 2025, Canada announced $6.6 billion under the Defence Industrial Strategy (DIS) to strengthen national security and economic resilience by building a robust Canadian defence industrial base. As a pillar of the strategy, the DIS seeks to secure and deepen supply chains for key inputs of advanced defence technologies to ensure operational readiness and increased capabilities for the Canadian Armed Forces. Reliable access to these key inputs, including critical minerals and specialized materials and components, will help Canada mitigate the impact of geopolitical disruptions and minimize economic and national security risks.

Global demand for critical minerals, and for products that incorporate them, is expected to increase significantly in the coming decades, driven by the transition to a low-carbon economy and the growing need for enhanced security and defence capabilities. As such, there is a need to move quickly and fill gaps all along the critical mineral value chain and take action to further scale and integrate into the domestic supply chain network.

One such opportunity lies for advanced materials and components that are produced from feedstocks containing critical minerals, where Canada currently relies heavily on foreign production and supply. At the same time, Canada has demonstrated leadership in the advanced materials space, offering a strong foundation for further investment, particularly for clean energy technologies. Building on this strength, this call for proposals (CFP) aims to bolster domestic production of advanced materials and components for both clean energy and defence applications, reinforcing civilian and defence supply chains and supporting Canada’s long-term strategic resilience.

1.3 Call objectives

Impact statement

This CFP seeks to strengthen Canada’s critical minerals value chain and domestic materials production capabilities by advancing applied research and development (R&D) for materials and components targeting clean energy and defence-relevant applications.

Call objectives

This CFP will support projects that achieve this goal by meeting both of the following Call objectives:

1. Integrate with and/or improve reliable access to domestic and/or allied critical mineral and materials supply chains.
2. Accelerate materials and process innovation for advanced materials and components used in clean energy- and defence-relevant applications through technology readiness level advancement.

2. Eligibility

2.1 Eligible Canadian recipients

This CFP is open to for-profit legal entities validly incorporated or registered in Canada, specializing in technology development and committed to advancing innovative solutions through critical growth stages toward commercialization.

All applicants must provide:

• A commercialization plan: a clear trajectory for establishing a competitive presence within Canadian or allied critical mineral value chains.
• An Intellectual Property (IP) strategy: a robust plan to protect the long-term value of the technology and establish freedom to operate in its target market.

Preference will be given to applicants headquartered in Canada who maintain primary ownership of both Background IP (developed prior to or independent of the project) and Project IP (conceived or developed during the project). For more information on IP requirements, please see Section 3.2.4.

Indigenous owned for-profit organizations are encouraged to apply.

For the purposes of this applicant guide, the term “Indigenous” is understood to include Inuit, Métis, and First Nations individuals, or any combination thereof.

Please note, for-profit organizations include university spin-offs, so long as they are validly incorporated or registered in Canada and can provide a 9-digit business number (BN) by the full project proposal (FPP) phase.

2.1.1 Applicant organization contribution

The applicant organization responsible for the submission of a project proposal through this CFP process will be required to make a cash contribution to their proposed project. While the contribution amount does not need to be confirmed at the expression of interest (EOI) phase, applicants are encouraged to provide detailed information, if available.

Projects that are invited to submit a FPP will be required to provide a Letter of Confirmation of Applicant Organization Contribution with details regarding the contribution amount. This template will be provided via the applicant portal.

2.1.2 Project partners

Partners are defined as organizations providing cash or in-kind contributions to the project.

The CFP envisions successful project proposals will include diverse project teams and/or partnerships that possess cross-sector expertise and demonstrate a mutual commitment to applying combined knowledge to deliver on the proposed project. The CFP will implement a preference for projects with a diverse consortium of partners or project team members with cross-disciplinary backgrounds (for example, academics, military and energy experts, other industry partners).

While project partners do not need to be confirmed at the EOI phase, applicants should provide information, if available. Projects that are invited to submit an FPP will be required to provide a letter of contribution for each partner identified. Note that the strength of the letters of contribution will be considered during the FPP evaluation.

Applicants are permitted to work on their project with partners that do not qualify as eligible applicants, such as federal government labs, and other government departments so long as the funding from Natural Resources Canada (NRCan) is not being used to pay for the federal government's own internal operations, or towards the acquisition of land, buildings, works, machinery and equipment or construction or creation of assets for the federal government.

2.2 Eligible projects

2.2.1 Eligibility criteria

To be eligible for funding through this CFP, applied R&D projects must meet all the following criteria.

Projects must:

• Pursue one of the following technology pathways:
  1. Development of an innovative advanced material(s) or component(s)

  or

  2. Development of an innovative process(es) to produce advanced materials or components
• Use feedstock(s) that contain, or strategically avoid, at least one critical mineral from the Call’s defence-critical raw materials list, as follows:
  • aluminium
  • beryllium
  • cobalt
  • gallium
  • germanium
  • graphite
  • lithium
  • manganese
  • platinum
  • rare earth elements
  • titanium
  • tungsten

  Where a project strategically avoids a material on this list, a feedstock material used in the proposed project must contain at least one critical mineral from Canada’s Critical Minerals List.

• Start at a technology readiness level (TRL) between 3 – 6 and seek to achieve at least one level of TRL advancement by the time of project completion (see Annex 7). Projects must be undertaking active, applied R&D within this range.
• Develop materials, components, or processes for the late-midstream to early-downstream segments of the critical mineral value chain.
• Target both a clean energy and a defence end-use application.
  • Some examples of clean energy end-use themes include:
    • electrochemical energy storage and conversion systems
    • electrical energy generation or conversion systems
    • advanced structural materials that are used in clean energy
  • Some examples of defence end-uses include:
    • avionics, land vehicles, uncrewed and autonomous systems
    • Defence end-uses should seek to directly support Canada’s key sovereign capabilities found in the Defence Industrial Strategy and defence equipment or infrastructure
  • In all cases, the innovation in the material, component, or process should demonstrate an improvement over incumbent technologies that addresses a need in or directly benefits the end use applications.

2.2.2 Ineligible projects

Ineligible projects are those that:

• Perform foundational research only. Please note foundational research is also an ineligible project activity.
• Perform demonstration or deployment of technology only. Please note demonstration and deployment activities are also ineligible project activities.
• Perform process optimization (that is, incremental improvement) only.
• Develop materials, components, or processes for the upstream mining extraction, refining, or basic material processing segments in the critical mineral value chain.
• Target an energy-only end-use application, or a defence-only end-use application.

3. Preferred selection criteria

This CFP will apply a set of preferences in selecting the final portfolio of projects to be invited for funding. These preferences include:

• Projects with a diverse consortium of partners or project team members with cross-disciplinary backgrounds (for example, academics, military and energy experts, other industry partners).
• Projects whereby the lead applicant is headquartered in Canada and maintains primary ownership of both Background IP (developed prior to or independent of the project) and Project IP (conceived or developed during the project).

NRCan reserves the right to apply the following additional criteria when selecting projects at the EOI and FPP stages:

• Projects that support departmental priorities such as regional balance in Canada, advancing inclusion, diversity, equity, and accessibility (IDEA) in the natural resources sector, and socio-economic considerations.

3.1 Guidance for project alignment with Call objectives and eligibility criteria

This section of the applicant guide is intended to provide applicants with additional guidance to ensure their proposed project meets Call objectives and eligibility criteria, as outlined in Section 1.3 and 2.2, respectively.

3.1.1 Objective 1

To ensure that projects supported through this CFP can sufficiently meet Call objective 1, integrate with and/or improve reliable access to domestic and/or allied critical mineral and materials supply chains, applicants should consider how their proposed project fits into broader energy and defence value chains (see Figure 1 below), including:

• the critical mineral contained in the feedstock and origin of the feedstock that will be used for the proposed project’s material, component, or process innovation
• the key performance indicator(s) that will be used to measure whether the material, component, or process innovation is successful
• the final product or application in both the energy and defence sectors into which the material or component will be integrated, or which will benefit from the proposed innovation

Figure 1. High-level depiction of project activities as situated in broader materials for energy and defence value chains.

Critical mineral feedstock

Project feedstock(s) must contain, or strategically avoid, at least one critical mineral from the Call’s defence-critical raw materials list (see Eligibility criteria, Section 2.2).

For projects using a feedstock that contains a critical mineral(s) from the Call’s defence-critical raw materials list, applicants must:

• Identify the primary critical mineral(s) contained in the feedstock(s) from the Call’s defence-critical raw materials list.

For projects using a feedstock that strategically avoids a critical mineral(s) from the Call’s defence-critical raw materials list (for example, innovations that substitute one critical mineral for another that may not be on the list), applicants must:

• Identify the primary critical mineral(s) from the Call’s defence-critical raw materials list being strategically avoided in the feedstock.
• Provide a rationale describing why and how the identified material is being avoided.
  • Examples of a rationale for the strategic avoidance of a critical mineral from the Call’s defence-critical raw materials list may include, but is not limited to, improved price stability, more reliable Canadian/allied suppliers, or simplified transportation logistics.
• Identify what critical mineral(s) from Canada’s Critical Minerals List will be contained in the project’s feedstock as an alternative to that which will be strategically avoided from the Call’s defence-critical raw materials list.

Projects will also be asked to identify the supplier(s) and country(ies) of origin (that is, source(s)) of project feedstock(s) for both immediate project implementation and the future commercialized technology. Should the project be invited to FPP, projects must present a plan for the eventual shift to domestic or allied suppliers if they are currently not available.

3.1.2 Objective 2

Project activities related to the material, component, or process innovation

All projects supported through this CFP must meet Call objective 2, accelerate materials and process innovation for advanced materials and components used in clean energy- and defence-relevant applications through technology readiness level advancement.

To meet Call objective 2, all projects must validate the performance of the material, component, or process that was developed over the course of the project. This will be established through the testing or evaluation of the material, component, or process. As such, applicants must ensure that their project has already completed the fundamental research required for their technology development, and that the project will focus on applied R&D.

Applicants will be asked to identify a specific project goal(s) with a key performance indicator(s) that represents the metric(s) by which project success will be measured. The project must include activities or a dedicated phase of work for the performance validation (that is, testing) of the material, component, or process innovation.

The project’s material, component, or process innovation must be developed for the late-midstream to early-downstream segments of the critical mineral value chain. For example:

• For batteries: Materials and components that are incorporated directly into a battery cell without further processing, such as cathode active material, anode active material, electrolytes, and current collectors. An exception is made for cathode precursor (pCAM) which is considered in-scope for this CFP.
• For fuel cells: Materials and components that are incorporated directly into a fuel cell or fuel cell stack without further processing, such as the cathodes, anodes, electrolytes, gas diffusion layers, catalyst coated membranes.
• For solar: The production of solar PV cells, such as thin-film PV cells, that can be incorporated directly into solar PV modules.
• For alloys: The production of alloy materials once elemental metals have been purified, such as permanent magnets or other value-added multi-metal containing materials.

Lastly, all projects will be asked to describe how environmental sustainability practices will be incorporated into the project and what plans or practices will be implemented to reduce potential negative environmental impacts of the material, component, or process innovation.

3.1.3 Material end-use applications in clean energy and defence

The project’s technology pathway must target a material end-use application in both clean energy and defence.

For the purpose of this CFP, the material end-use is defined as the last step in the material value chain and refers to the final assembly that is critical to the application or product. Projects must clearly define and provide compelling descriptions for the targeted material end-use applications in both clean energy and defence. Projects should provide evidence to substantiate the relevance of both proposed material end-use applications, and at a minimum justify the achievement of specific characteristics required for the targeted end-uses. Examples of evidence above this minimum requirement include, but are not limited to, customer engagement in the energy and/or defence sectors, identification of offtake market options, the achievement of specific energy and/or defence performance criteria to meet requirements, or alignment to relevant defence and energy end-uses through operating environment(s) or condition(s).

Applicants will be asked to elaborate on the following elements to describe their project’s clean energy and defence end-uses:

• The specific improvements the project seeks to achieve in the clean energy and/or defence end-use applications.
• The specific key performance indicators that will be used to track the anticipated improvements.
• How the anticipated improvements are a competitive alternative to existing commercially available or incumbent technologies.
• The linkages to Canada’s Defence Industrial Strategy defence capabilities and Government of Canada clean energy objectives (for example, Critical Minerals Strategy, mandate letters, etc.).

Examples of technology pathways and end-use applications

Eligible projects must include:

1. an identified technology pathway (material, component, or process innovation)
2. at least one end-use application in clean energy
3. at least one end-use application in defence

The following examples outline possible technology pathways and end-use applications. These examples are not exhaustive and are for reference only.

Examples of material or component types	For batteries: cathodes (including precursor cathode active material) anodes electrolytes current collectors For fuel cells: cathodes anodes electrolytes gas diffusion layers catalyst coated membranes For solar photovoltaic (PV) modules: solar PV cells Advanced alloys: superalloys high entropy alloys shape memory alloys permanent magnets
Energy end-use application examples	Batteries for: stationary energy storage transportation Fuel cells for: transportation stationary power combined heat and power Solar PV cells for: power generation Advanced alloys for: electric motors generators transformers energy storage energy infrastructure
Defence end-use application examples	Aerospace (e.g., aerospace platforms, avionics) Ammunition (e.g., common ammunition, battle-decisive munitions, small arms, missiles and bombs) Digital systems (e.g., quantum computing, high-assurance communications equipment) Fixed infrastructure and deployment shelters (e.g. Northern micro-grids) Mobility (e.g., land vehicles or surface ships, including icebreakers and marine systems) Personnel protection Portable power (e.g. soldier systems, wearable systems, attritable systems) Sensors (e.g., marine sensors, quantum sensors) Space (e.g., space-based intelligence; surveillance and reconnaissance, satellite communications, space launch) Uncrewed and autonomous systems (e.g., uncrewed and autonomous land, aerial, underwater and surface systems, including uncrewed collaborative platforms, robotics) Weapons systems (e.g., naval, land, air)

Examples of eligible projects

Illustrative examples that combine all the above elements for a project developing an innovative material or component:

• Novel lithium metal anodes for high performance batteries to be incorporated into military drones
• Novel rare earth element- or manganese-based permanent magnets for electric motors to be incorporated into military land vehicles

Illustrative examples that combine all of the above elements for a project developing an innovative process:

• Novel scale-up process for integrated Proton Exchange Membrane Fuel Cell gas diffusion layers for stationary power applications at military bases
• Novel scale up process for the production of photovoltaic cell materials for remote power to military infrastructure

3.2 Guidance for non-technical project elements

3.2.1 Buy Canadian

Applicants should describe how their project supports the Government of Canada’s Buy Canadian approach by maximizing Canadian suppliers, Canadian content, and domestic economic benefits. Where relevant, projects should clearly identify work performed in Canada, partnerships with Canadian firms, domestic research and development, and the use of Canadian-produced materials to strengthen Canada’s industrial capacity, supply chains, and defence readiness. Projects will be evaluated on how well the project demonstrates commercially reasonable efforts to support the Buy Canadian Policy.

3.2.2 Inclusion, diversity, equity and accessibility (IDEA)

To further OERD’s objectives to support projects that advance inclusion, diversity, equity and accessibility (IDEA), applicants will be asked to describe how their proposed project creates tangible, societal benefits and how they will be retained in Canada and made accessible to a variety of Canadians, including equity-seeking groups and those living in Canada’s Northern and Arctic regions. Applicants will be asked to describe how their project will benefit Canadian society, including, for example, through the establishment of a diverse project team or partnerships, project-level job creation, support for Northern and Arctic prosperity, advancement of energy security, and prioritization of domestic procurement for project equipment and services.

3.2.3 Project location

Under the Impact Assessment Act (2019), NRCan is required to assess whether projects that it may fund, carried out in whole or in part on federal lands or outside Canada, are likely to cause significant adverse environmental effects. Please ensure when filling out the “Project Locations” section of the application form that you disclose all relevant locations, referencing Sections 81 – 83 of the Impact Assessment Act. For further information, please see Annex 6.3.

3.2.4 Intellectual property (IP) requirements

Intellectual property (IP) represents the intangible assets—both formal and informal—that form the competitive foundation of modern technology development.

• Formal IP includes registered protections such as patents, trademarks, industrial designs, and copyrights.
• Informal IP consists of proprietary knowledge such as trade secrets and technical know-how.

Formal or informal IP rights may be pursued by an organization based on various strategic considerations, such as sector-specific trends, competitor activity, and cost.

As part of this CFP, all applicants must articulate an IP strategy that supports their path to commercialization. This strategy should demonstrate how the organization intends to protect the value of its technology and manage freedom to operate risks within its target markets. Freedom to operate refers to the ability to use or commercialize a product, process or service without infringing on the intellectual property rights owned by someone else.

As such, all applicants must explain how each of the three following IP categories are relevant to the project:

• Background IP, which refers to pre-existing IP developed prior to or independent of the proposed project, but is required to carry out the proposed project or for the exploitation of the Project IP.
• Project IP, which refers to IP that will be conceived, produced, developed, or reduced to practice in carrying out the proposed project.
• Other relevant IP, which refers to IP owned or filed by your organization that may not be relevant to the proposed project but may demonstrate your organization's IP maturity or competitive market position in the target market for your innovation.

Applicants can use Background IP as part of their project, including Background IP from outside of Canada, so long as the IP is licensed to the applicant for use in Canada. A successful contribution agreement with NRCan will require that all IP that arises from the project (that is, Project IP) vest in, or be licensed to, the funding recipient. If no IP is expected to arise from the project, applicants will be required to justify this position.

3.2.5 Knowledge dissemination

Applicants will be asked to describe the knowledge products that will be produced as part of the project and how these products will be disseminated. Knowledge dissemination, including the sharing of project insights, successes, and barriers, is a key element of technology innovation. Applicants are required to participate in knowledge dissemination activities either during the project or after project completion. Applicants may choose to allocate a portion of their funding toward these activities, so long as the activities occur during the reimbursement period as outlined in section 4.1. Applicants are required to provide NRCan with copies of their knowledge products (for example, summary report, slide deck, data, infographics) as part of regular reporting expectations outlined in Annex 5: Reporting requirements.

4. Funding and support

4.1 Contributions

The CFP is open to projects requesting a contribution percentage up to 75% of total project costs. The minimum contribution from EIP is $1,500,000, and the maximum contribution is $5,000,000. Funding is available between April 1, 2027, and March 31, 2032.

The requirements for minimum contribution, maximum contribution, maximum government stacking percentage, and project life are outlined in the table below:

Maximum Call contribution percentage (% of total project cost)	Minimum contribution	Maximum contribution	Maximum government stacking percentage (% of total project cost)	Project life
75% (Up to 100% for Indigenous applicants)	$1.5M	$5M	100%	Up to 5 years

Collaboration and leveraging for all project components are expected and may be a factor in the review of FPPs. Stacking of funding (that is, total government support for a project) will be supported to a maximum of 100% of the total project cost.

Total project cost refers to the total cost of the project and includes both eligible expenditures (defined in Annex 1.1) and ineligible expenditures (defined in Annex 1.2). (Total project cost) = (Eligible expenditures) + (Ineligible expenditures). Total project cost does not include non-permissible expenditures (defined in Annex 1.3).

Contribution percentage (% of total project cost) refers to the maximum percentage of funding provided by the CFP for total project cost (cannot exceed the maximum contribution). The balance is to be funded by the recipient or from other sources.

Minimum contribution refers to the minimum amount of funding provided by the CFP for total project cost and must also align with the contribution percentage limitations.

Maximum contribution refers to the maximum amount of funding provided by the CFP for total project cost and must also align with the contribution percentage limitations.

Maximum government stacking percentage (% of total project cost) refers to the maximum level of total Canadian government (federal, provincial, territorial, and municipal) funding authorized by this CFP. Prior to signing contribution agreements, a recipient will be required to disclose all anticipated sources (Canadian and non-Canadian) of funding for the proposed project, including approved in-kind funding, clearly identifying contributions from other Canadian government sources (federal, provincial, territorial, and municipal, including federal laboratories). This stacking limit must be respected when assistance is provided. In the event that actual total government assistance to a recipient exceeds the eligible expenditures, NRCan will adjust its level of contribution from the CFP (and seek reimbursement, if necessary) so that the stacking limit is not exceeded. Eligible expenditures are defined in Annex 1.1. Note that other programs may have different stacking limits for federal funding, and it is the responsibility of the applicant to ensure that they are within the eligible range for their project across all funding programs they apply to.

4.2 In-kind contributions

In-kind contribution means a cash-equivalent contribution for which no cash is exchanged but that is essential to the project and would have to be purchased by the proponent on the open market, or through negotiation with the provider, if it were not provided to the project proponent.

The CFP accepts in-kind contributions as part of the total project cost, subject to the definitions and limitations described in Annex 4. As per Annex 1.2, in-kind support is ineligible for reimbursement.

5. Timelines

The following timelines are anticipated for the CFP. NRCan, at its sole discretion, reserves the right to modify these anticipated timelines.

Steps	Dates
Open for Expressions of interest (EOI) applications	June 1, 2026
Deadline for EOI applications	July 3, 2026
Notification of EOI results	Summer 2026
Deadline for Full project proposal (FPP) submissions	Summer/Fall 2026
Project selection/notification	Fall 2026
Due diligence	Winter 2026 – 2027
Drafting and signing of contribution agreement	Winter 2026 – 2027

6. Application process

6.1 How to apply

To apply, applicants must complete and submit their expression of interest via the application portal by 1:00 p.m. ET on July 3, 2026.

The CFP’s project selection process has two phases:

• Expression of interest (EOI) phase, open to all eligible applicants
• Full project proposal (FPP) phase, open to invited applicants only

Applicants are responsible for ensuring that they meet the eligibility criteria and that their EOI is fully completed and successfully submitted by the deadline. The Energy Innovation Program will not accept submissions for this CFP after the stated deadline.

Please note that due to the volume of inquiries received and to ensure the fairness of the process, the program team will not have meetings or calls with individual applicants during the intake period. Questions about the CFP or the process should be directed to: eipenergydefence-pieenergiedefense@nrcan-rncan.gc.ca.

6.2 Applicant portal

• Access the EOI portal

6.3 Contact us

For any questions regarding the CFP, please contact NRCan at eipenergydefence-pieenergiedefense@nrcan-rncan.gc.ca. During regular operations, NRCan will strive to respond within two business days.

6.4 Next steps

6.4.1 Full project proposal phase

NRCan will notify the applicants who are invited to the FPP phase and send them information on the FPP timelines and submission requirements.

Applicants must provide all mandatory information to be considered for funding. An invitation to the FPP phase does not represent a funding commitment from NRCan.

NRCan may request supplementary information at various points in the review process.

6.4.2 Due diligence assessment

All applicants selected for funding will undergo a due diligence assessment, which will include four main components: financial, technical, legal and regulatory due diligence. Selected applicants will have two months to fulfill all due diligence requirements. Note that if regulatory obligations are triggered, more time would be required to complete the due diligence assessment.

As part of financial due diligence, selected applicants will be asked to complete a detailed budget and statement of work template which will be thoroughly assessed by the assigned NRCan project team. Applicants may also be selected by NRCan for a 3rd party financial audit or be asked to provide their three major financial statements (cash flow, income and balance sheet) to evaluate the organization’s financial health. Applicants will be asked to provide documentation to support budget estimates.

Technical due diligence will be assessed by reviewing the applicant’s detailed budget and statement of work template. A panel of science and technology advisors will evaluate project complexity, feasibility and timelines.

Applicants will be asked to provide legal proof of registration in Canada as part of the legal due diligence. Within the detailed budget and statement of work, there are sections dedicated to permits and conflict of interest, which are also part of the legal due diligence performed by NRCan.

Regulatory due diligence encompasses obligations under the Impact Assessment Act and the legal duty to consult with Indigenous peoples set out in section 35 of the Constitution Act, 1982. During the due diligence phase, NRCan must assess any regulatory obligations it may have for each project and complete all federal requirements related to these Acts before funding can be disbursed. As per sections 82 and 83 of the Impact Assessment Act, NRCan must not provide financial assistance for a project to be carried out, in whole or in part, on federal lands/outside Canada, unless the project is not likely to cause significant adverse environmental. As per section 35 of the Constitution Act, 1982 Canada has a legal duty to consult with Indigenous peoples when contemplating funding a third party to carry out a project that might adversely impact potential or established Aboriginal or treaty rights. NRCan is responsible to evaluate each project to understand how and when a project could adversely impact these rights. The full project proposal, detailed budget, and statement of work template contain questions and information that are specifically used to assess NRCan’s regulatory obligations and will help inform how to fulfill this requirement.

Applicants undergoing due diligence will be notified whether their project passes the due diligence assessment. Applicants whose projects pass the due diligence assessment will be invited to work with NRCan to draft, sign, and execute a contribution agreement. NRCan reserves the right to review and subsequently terminate the due diligence process if there is a change in partners, collaborators, or vendors without a clear rationale and indication that it does not change the scope of the project and the intended benefits, investments, and activities in Canada, and an attestation that there is no legal risk relating to but not limited to intellectual property.

6.4.3 Contribution agreement

Any funding under the CFP will be contingent upon the execution of a contribution agreement. Until a written contribution agreement is signed by both parties, no commitment or obligation exists on the part of NRCan to make a financial contribution to any project, including any expenditure incurred or paid prior to the signing of such contribution agreement.

The contribution agreement is with the applicant only, not partners, collaborators, or vendors. While the program does not oversee or otherwise have involvement in the contracts or other arrangements made between partners, collaborators, or vendors, applicants need to advise NRCan if there are any changes to these contracts or other arrangements such that NRCan can review for potential impacts to the scope of the project and the intended benefits, investments, and activities in Canada as well as to the legal risk relating to but not limited to intellectual property.

More information on NRCan contribution agreements will be made available to successful applicants following notification of the proposal results.

6.4.4 Service standards

NRCan maintains a suite of service standards on the expected timelines for each phase of program delivery. The service standards for NRCan’s programs are available at the following link: Natural Resources Canada’s Service Standards for Transfer Payment Programs.

Annex

1. Eligible, ineligible, and non-permissible expenditures

1.1 Eligible expenditures

Eligible Expenditures for an approved project must be directly related to, and necessary for, the implementation and conduct of a project and will include:

• Salaries and benefits for employees on the payroll of the recipient for the actual time spent by the employees on the project
• Training and workshops
• Professional, scientific, technical and contracting services
• Travel expenditures, including meals and accommodation, based on National Joint Council Rates, adjusted to reflect costs in Northern and remote areas, where appropriate
• Capital expenditures such as the purchase, installation, testing and commissioning of qualifying equipment, materials and products, including diagnostic, testing tools and instruments, and original equipment manufacturer equipment warranty (including extended warranties where deemed appropriate to mitigate risk and lack of capacity)
• Other expenses related to the project or activity including:
  • laboratory and field supplies, and materials
  • printing services and translation
  • data collection services, including processing, analysis and management
  • facility costs for seminars, conference room rentals etc. (excluding hospitality)
  • construction insurance
  • accreditation
  • license fees and permits
  • honoraria
  • training
  • field testing services
• Overhead expenditures, provided they are directly related to the conduct of the project and can be attributed to it. Overhead expenditures can be included as eligible expenditures to a maximum of 15% of eligible expenditures. Overhead expenditures include:
  • administrative and corporate support provided directly to the project by the recipient's employee(s), valued on the same basis as professional staff time
  • routine laboratory and field equipment maintenance, based on the actual expenditure to a recipient
  • office operating expenses directly related to the conduct of the project (for example, faxes, telephone, photocopies, internet, SAT phones, and office equipment)
  • costs associated with further distribution of funding
  • a predetermined overhead percentage (based on evidence provided by the recipient of expected overhead expenditures at the time of contribution agreement negotiation), may be set and subsequently applied to each claim, in order to avoid unnecessary administrative burden to funding recipients
• GST, PST or HST, net of any tax rebate to which the recipient is entitled

Further details are described in Annex 3.

1.2 Ineligible expenditures

Costs ineligible for reimbursement from the CFP (but permitted as part of the proponent’s contribution to the total project cost) will include:

• all costs incurred within the total project cost period but outside the eligible expenditure period are considered as ineligible expenditures
• overhead expenses exceeding 15% of eligible expenditures may be included as ineligible expenditures and count towards the proponent’s portion of the total project cost provided that the sum of overhead expenses (eligible plus ineligible) does not exceed 15% of the total project cost
• the reimbursable portion of federal and provincial taxes
• in-kind costs

From time to time, the CFP may determine that some of the proponent’s project costs will not be eligible for reimbursement but may be included towards the proponent’s contribution to the total project cost. These costs will be considered ineligible expenditures and should be included in the Ineligible Expenditures section of the budget at the FPP phase. The program will provide guidance to the proponent as required.

1.3 Non-permissible expenditures

The program uses transfer payments to provide financial assistance in the form of Grants and Contributions to other organizations or individuals selected as eligible recipients to undertake their activities or projects. These funds cannot be used for the federal government's own internal operations, or towards the acquisition of land, buildings, works, machinery and equipment or construction or creation of assets for the federal government.

Additionally, expenditures ineligible either for reimbursement or for inclusion as part of the total project cost (non-permissible costs) include the purchase of land.

1.4 Collaboration with federal laboratories

Projects in collaboration with federal laboratories are eligible, but no preference will be given to projects with federal laboratory participation. Applicants will be required to clearly articulate in the application how the collaboration will address specific technical RD&D challenges and ensure relevancy and alignment between industry and federal interests. The roles and responsibilities of the parties and the terms of the collaborator’s participation in the project must be clearly identified and may require a separate agreement. Costs associated with the federal laboratories should be included under the Partners and Budget section of the EOI and FPP.

2. Definitions

Accessibility: An overarching goal that refers to how the project’s direct and indirect benefits are accessible to a wide range of community groups and stakeholders to realize a barrier-free environment. A barrier could include anything that hinders full and equal participation in society regardless of distinct identities and needs. Removing barriers ensures more equitable opportunities and supports are available for all members of society.

Achieved technology readiness level (Achieved TRL): The level that a technology is said to have achieved if it has met all requirements for that specific level and all prior levels. The achieved TRL refers to the level of the technology, and the TRL requirements it has achieved prior to the beginning of the proposed project.

Advanced materials: In the context of this CFP, refers to a state of a material or component which has been engineered for a specific purpose or to confer improved properties or performance, as opposed to raw materials that require processing.

Background intellectual property (Background IP): Pre-existing IP developed prior to, or independent of, the project but is required to carry out the proposed project or for the operation of the Project IP.

Contribution: Funding provided by Canada under the contribution agreement toward Eligible Expenditures.

Defence-critical raw materials: Refers to the call-specific list of eligible materials that applicants may use in their feedstock for their material, component, or process innovation. The list includes aluminium, beryllium, cobalt, gallium, germanium, graphite, lithium, manganese, platinum, rare earth elements, titanium, and tungsten.

Diversity: The acceptance and respect of various human dimensions including race, gender, sexual orientation, ethnicity, socio-economic status, religious beliefs, age, physical abilities, political beliefs or other ideologies.

Due diligence start date: The date on which the proponent was notified that it succeeded to the due diligence stage.

Eligible expenditure period: Recipients will be allowed to start incurring eligible expenditures from the date a recipient’s project has been conditionally approved (and pending a due diligence review) or April 1 of the fiscal year in which the contribution agreement is signed and ending on the contribution agreement completion date. Retroactive expenditures will be limited to 30% of NRCan’s contribution.

Eligible expenditures: Costs incurred within the eligible expenditure period, either directly by the proponent or through a third party, which are cash disbursements made with respect to the activities set out in the proposal.

Energy security: In the context of this CFP, refers to projects that improve the reliability and resilience of Canada’s energy systems and the critical mineral value chains from which their inputs are sourced. This could include, but is not limited to, projects that improve the freeze-thaw resilience of Northern energy systems.

End-use application: The last step in the material value chain. The end-use application refers to the final assembly that is critical to the application or product.

Equity: A condition or state of fair, inclusive and respectful treatment of all people based on their distinct identities and needs; removing systemic barriers to ensure all members are fully supported and have opportunities to advance. Equity does not mean treating people the same without regard for individual differences.

Equity-seeking group: Group of people who, because of systemic discrimination, face barriers that prevent them from having the same access to the resources and opportunities that are available to other members of society, and that are necessary for them to attain just outcomes.

Formal intellectual property (Formal IP): Registered protections such as patents, trademarks, industrial designs, and copyrights.

Freedom to operate: The ability to use or commercialize a product, process or service without infringing on the intellectual property rights owned by someone else.

IDEA: Inclusion, diversity, equity and accessibility.

Inclusion: The extent to which diverse members of a group (society/organization) feel valued and respected.

Indigenous individuals: Includes Inuit, Métis, and First Nations individuals, or any combination thereof.

Indigenous applicant or recipient: Community, government, or organization governed by Indigenous individuals. This includes but is not limited to band councils, tribal councils, incorporated for-profit and not-for-profit Indigenous controlled organizations, and self-governing Indigenous entities.

Indigenous-owned project: A project led by an applicant with 51% or greater Indigenous ownership who hold a controlling interest in project activities.

Informal intellectual property (Informal IP): Consists of proprietary knowledge such as trade secrets and technical know-how.

Innovative: Can describe technology or an approach that is a development, iteration, or efficiency improvement of an existing concept, product, or method that disrupts existing markets or industries. Technological innovations may apply incremental updates or larger systems changes.

Intellectual property (IP): Intellectual property is an intangible and created asset that has legal protection from unauthorized use, distribution or sale.

Northern communities: Communities located north of the limit of isolated permafrost – approximately 50° north latitude.

Novel: A new or original technology or approach that does not resemble something formerly known or in existence. Emphasis on the originality since novel technologies often refer to inventions at the preliminary stage of development. Something novel may suggested an unprecedented innovation.

Other relevant intellectual property (Other relevant IP): IP owned or filed by your organization that may not be relevant to the proposed project but may demonstrate your organization's IP maturity or competitive market position in the target market for your innovation.

Planned technology readiness level (Planned TRL): The level that a technology is expected to have achieved by the time of the proposed project completion.

Pre-commercial: A product, technology or method that has not entered the marketplace yet.

Profit: In relation to the project, net operating profit as determined by Generally Accepted Accounting Principles.

Project: The Applicant’s proposal, as submitted to NRCan.

Project intellectual property (Project IP): IP that will be conceived, produced, or developed to execute the proposed project.

Technology development: Advancing innovative technology through critical growth stages, from proof-of-concept to market launch, and ensuring that it is viable, reliable, and scalable for broader market integration.

Total project cost: The contribution and other verifiable contributions either received or contributed by the proponent from the due diligence start date to the completion date and directly attributable to the Project.

University spin-off: A company that was founded by students, scientists, or employees of an academic institution to develop or commercialize technology or technological innovations developed from academic/university research. University spin-offs must be a separate legal entity and not an extension of or controlled by the academic institution.

3. Eligible expenditures – Costing memorandum

3.1 Salaries and benefits

3.1.1 Salaries

Salaries include wages for all personnel with direct involvement in the project such as engineers, scientists, technologists, draftsmen, researchers, laboratory, experimental and shop labour. All eligible personnel must be employees on the proponent’s payroll. Payment in terms of shares, stock, stock options and the like are not eligible. The amount invoiced shall be actual gross pay for the work performed and shall include no markup for profit, selling, administration or financing.

The eligible payroll cost is the gross pay of the employee (normal periodic remuneration before deductions). Normal periodic remuneration rates are the regular pay rates for the period excluding premiums paid for overtime or shift work. The payroll rate does not include any reimbursement or benefit conferred in lieu of salaries or wages. When hourly rates are being charged for salaried personnel, the hourly rates shall be the periodic remuneration (annual, monthly, weekly, etc.), divided by the total paid hours in the period including holidays, vacation, paid sickness time.

Labour claims must be supported by suitable records such as time sheets and records and be held for verification at time of audit. Management personnel are required to maintain appropriate records of time devoted to the project.

3.1.2 Benefits

Benefits are defined as a reasonable prorated share of expenses associated with the direct labour cost such as the employer’s portion of Canada Pension Plan, Quebec Pension Plan and Employment Insurance, employee benefits such as health plan and insurance, Worker’s Compensation, sick leave and vacation plus any other employer paid payroll related expenses. Items such as salary bonuses and other salary incentives, stock options or vehicle use, which have no relationship to the project, or which have been charged on an indirect basis are non-eligible. The determination of the fringe benefits amount shall be in accordance with generally accepted cost accounting principles. In general, fringe benefits rate provided in the project estimate shall be computed once during the life of the project and agreed on prior to the signing of the Agreement. If retroactive adjustments are made, these must be indicated on claims for progress payments for NRCan approval.

3.2 Professional, technical, and scientific contracting services

Sub-contractors and consultants: The nature of goods or services to be acquired shall be set out in the proposal estimate. The amount eligible from a sub-contractor or a consultant shall be the actual contract mount.

3.3 Travel, meals, and accommodation costs

Unless stated otherwise in the contribution agreement between NRCan and the proponent, National Joint Council Rates that are in effect at the time of expenditure incurrence, adjusted to reflect costs in Northern and remote areas, where appropriate, shall be used in reimbursing the following expenses:

• Travel, food and lodging costs to meet with NRCan officials
• Travel, food and lodging costs necessary for other project activities, for example, field trials and demonstrations at locations away from the proponent's usual location; project planning and review meetings between the principal proponent and its partner(s)

3.4 Capital expenditures

3.4.1 Materials

Materials include those consumed in carrying out the project, including those utilized in the production and operation of models, prototypes and pilot plants. Only utilities consumed to operate equipment, or processes are eligible and may be metered and reported separately from the total utility cost. Utilities used for buildings are not eligible.

Materials purchased solely for the project and issued from the proponent’s inventory are eligible. All materials shall be charged to the project at the net price excluding GST after deducting all trade discounts and similar credits. Surplus materials shall be credited to the project at the original purchase price.

3.4.2 Equipment

Equipment consists of equipment acquired or constructed exclusively for the project. In order to be eligible, such equipment must be identified in the project cost estimate and approved by the Minister. All such equipment shall be charged to the project at the net price (excluding GST) after deducting all trade discounts and similar charges.

Where such equipment is obtained from another division of the proponent or from a related company, the eligible expenditures shall not exceed fair market value and shall not include any markup for profit, administration, selling or financing expense.

3.5 Other expenses

3.5.1 Testing services

Eligible testing services are those conducted by testing organizations or accredited laboratories, such as the Canadian Standards Association, Underwriters Laboratories and must be essential to the success of the project. Testing services shall be charged at actual cost. Regulatory costs, where required may be eligible, for example, testing to comply with environmental standards. All such costs should be identified in the original proposal cost estimates.

3.5.2 Overhead expenses

With regard to overhead expenses, they may include:

• administrative support provided directly to the project by the proponent’s employee(s), valued on the same basis as professional staff time
• routine laboratory and field equipment maintenance, based on the actual cost to the proponent that is directly related to the project
• heat, hydro, and office operating costs (for example, faxes, telephone), provided that they are directly related to the project

Overhead costs will be negotiated and agreed to on an individual basis with project proponents before signing a contribution agreement. They will not exceed 15% of eligible expenditures.

4. In-kind contributions – Costing memorandum

4.1 Purpose, definitions, eligibility, and value

4.1.1 Important note

The program accepts in-kind contributions (defined below) as part of the total project cost, subject to the definitions and limitations described in this section. As per Annex 1.2, in-kind support is ineligible for reimbursement.

Proposed in-kind contributions that are deemed acceptable by NRCan officials must be supported by a formal commitment from the project proponent to provide them, prior to any commitment on Program funding to the proposed project being made.

4.1.2 Purpose

The purpose of this section is to identify the kinds of non-cash contributions (“in-kind support”) that are acceptable as part of the overall funding for the project from the project proponent, and to provide guidance on how to put a value on those contributions.

4.1.3 Definitions for this section

In-kind contribution: A cash-equivalent contribution for which no cash is exchanged but that is essential to the project and would have to be purchased by the proponent on the open market, or through negotiation with the provider, if it were not provided to the project proponent.

Fair market value: The average dollar value the project proponent could get for a contributed asset in an open and unrestricted market, between a willing buyer and a willing seller (the proponent) who are acting independently of each other. As a guide, it should approximately represent the original cost minus the depreciation.

Most favoured customer: A customer given the deepest discount from the normal selling price for a good or service sold to it by the project proponent.

Collaborators: Organizations that are involved in the implementation of the project without providing in-kind or financial contributions to the project.

Project proponent: Refers to the funding recipient and its partners and collaborators.

Asset section: A useful and valuable good, service or other support provided to the project.

Internal rate: The rate that would be charged by the component of the project proponent that provides the service to the component of the proponent that receives it.

4.1.4 Eligibility of in-kind contributions

To be eligible as an in-kind contribution:

• The contributed asset must be from one of the categories identified in Categories of eligible in-kind support.
• It must be essential to a project's success and would otherwise have to be purchased by the project proponent.
• Its value must be determinable and verifiable.
• Its valuation must be confirmed by NRCan officials or its auditors and agreed upon by the project applicant and NRCan.

4.1.5 Assessing the value of in-kind contributions

Two different approaches to the valuation of in-kind support are possible:

• Using the fair market value, as described above.
• Using the incremental cost – the cost to the project applicant or its partners and collaborators of providing the contributed asset over and above normal operating costs.

4.2 Categories of eligible in-kind support

4.2.1 Salaries and benefits

This category addresses the provision of the project partner’s employees’ time to undertake work, such as research, technology development and assessment, and expert analysis that is wholly and directly in support of the project.

The value of services of an employee of the project’s partner provided to the proponent should be at Fair Market Value for the type of service provided and that these services are consistent with the duty for which the employee is normally paid.

4.2.2 Professional, scientific and contracting services

This category addresses the provision of analytical and technical services. Analytical and technical services include routine laboratory and field technical services such as data collection, laboratory analyses and measurements, and field measurements, exclusive of equipment maintenance. These services may be provided by a component of the project proponent’s overall organization or provided to the project proponent by a third party.

The value of analytical and technical services provided by or to the proponent should be the lesser of the project proponent’s Internal Rate for the service if that service is provided internally (that is, within the project proponent's organization), or the incremental cost to the project proponent if it is provided by a third party.

4.2.3 Provision of equipment and laboratory and field supplies and materials

This category includes equipment, laboratory supplies and field supplies that are provided by or to the project proponent, and the provision of access to, and use of, proprietary software and databases owned by or provided to the project proponent.

Values assessed for equipment and laboratory and field supplies and materials provided to the project must meet the following criteria:

• The value of supplies and materials shall not exceed the selling price to the provider’s most favored customer at the time of provision.
• The value of equipment shall not exceed the fair market value of equipment of the same age and condition at the time of provision.
• If the equipment is special purpose, one-of-a-kind, its value shall not exceed the cost to the provider of its design, testing and manufacture.
• The value of access to, and use of, proprietary software and databases should be the incremental costs to the project proponent of providing that access and use, such as staff time involved, including providing any required instruction on their use. Costs associated with developing the software or databases are ineligible as an in-kind contribution.

4.2.4 Travel, meals, and accommodation costs

Unless stated otherwise in the contribution agreement between the NRCan and the proponent, National Joint Council Rates that are in effect at the time of expenditure incurrence, adjusted to reflect costs in Northern and remote areas, where appropriate, shall be used in assigning a value to the following expenses:

• travel, food and lodging costs to meet with NRCan officials
• travel, food and lodging costs necessary for other project activities, for example, field trials and demonstrations at locations away from the proponent's usual location; project planning and review meetings between the principal proponent and its partner(s)

4.2.5 Overhead expenses

With regard to overhead expenses, they may include:

• Administrative support provided directly to the project by the proponent’s employee(s), valued on the same basis as professional staff time (as described under category 1).
• Routine laboratory and field equipment maintenance, based on the actual cost to the proponent that is directly related to the project.
• Heat, hydro, and office operating costs (for example, faxes, telephone) telephone, provided they are directly related to the project.
• Overhead costs will be negotiated on an individual basis with project proponents. The total of overhead expenses (eligible and ineligible) will not exceed 15% of total project cost.

5. Reporting requirements

5.1 Outcome reporting

After entering into a contribution agreement with NRCan, proponents of successfully funded projects will be required to report on a quarterly and yearly basis to ensure that targets and objectives are being met.

As some outcomes may only be realized after funding has ended, ongoing data collection and assessment will be required for a period of five years following the project’s completion date.

The frequency of reporting will be determined based on the risk of the recipient/project as established by the departmental risk management model but will include, at a minimum, annual reporting.

The reporting requirements for recipients will be as follows:

5.2 On a regular basis

• A financial report signed by the Chief Financial Officer or Duly Authorized Officer of the organization which outlines eligible expenditures incurred.
• A project cash flow statement and/or budget.
• As applicable, commercially reasonable efforts to support the Buy Canadian Policy.
• A report using a template supplied by NRCan that shall provide a status of activities in sufficient detail to allow progress to be evaluated and periodic tracking of performance indicators. The report should identify any concerns that NRCan should be made aware of and explain how they are being addressed.

5.3 At the end of the project

It will be considered to be the 'end of the project' once the final (if more than one) reporting, as outlined in the contribution agreement, has been completed to the satisfaction of NRCan.

Reports may include:

• A financial declaration as to the total amount of contributions or payments received from other sources in respect of the project.
• A financial declaration as to the total amount of Canadian government funding received in respect of the project.
• A project completion report to describe how project activities have contributed to the achievement of the objectives of the project, which may include confidential information for internal government use only, including:
  • a review of the results of the project in comparison to the original deliverables and work plan, with explanations of any deviations
  • a review of the project's performance measures to describe the benefits that have or will accrue as a result of the project including energy efficiency, environmental impact, costs and paybacks, and any other appropriate measures such as productivity and quality improvements
  • a description of the recipient's knowledge dissemination activities and/or tech transfer activities (where applicable)
  • a final project cost table
• A communications summary, using a template supplied by NRCan, that describes the project and its results, which may be translated by NRCan and made publicly available.
• A public narrative report, which can be in any format and must include certain key information: project objectives, overview, summary of achievements, progress, main outputs and outcomes, key lessons learned, and next steps.
• Where applicable, copies of any non-proprietary reports requested by NRCan arising from and prepared during the course of the project.

Alternative means of public reporting that are more contextually and culturally appropriate may be substituted for Indigenous recipients.

5.4 For a period of 5 years following the end of the project

Annually, an updated follow-on report, using a template supplied by NRCan, to report on short term, intermediate term, and, to the extent possible, long-term outcomes. Regular communication between NRCan and the recipients will be established to monitor progress.

5.5 Non-repayable contributions

Contributions under these programs will be non-repayable, as they will be for pre-commercial (technology readiness level 1-9) activities and the benefits from the contribution will be accrued broadly rather than to the recipient. The projects being supported under these programs are pre-commercial in nature and thus not anticipated to generate revenues as the technologies require further adaptation, improvements, and de-risking to be commercially profitable.

This is in accordance with the Directive on Transfer Payments, Appendix E, Section E-15, which permits non-repayable contributions under such circumstances when "the benefits from the contribution accrue broadly rather than to the recipient". The benefits of these contributions will accrue broadly: the environmental benefits will include more efficient energy usage, increased renewable energy production, reduced impacts on air, water, and soil, among others, and these environmental goods will benefit Canadians as a whole. In the long term, the competitive benefits resulting from the program will also result in more sustainable employment. And economic development opportunities for Canadians, including Indigenous communities, in the natural resource sectors. Primary activities are also intended to provide input into policies, codes, standards, and regulations while enabling the transfer of knowledge and building of capacity through implementing green technologies in Canada. This is of particular importance in Canada's remote communities.

5.6 Other terms and conditions

Approved projects may be subject to one or more external audits (recipient audits) to ensure that the terms of the contribution are respected. The requirements for recipient audits will be determined on a risk-based assessment on a project-by-project basis.

The conditions related to the disposition of assets acquired by the recipient with funding provided by NRCan shall be identified in the contribution agreement.

6. Regulatory, reporting, and other requirements

6.1 Inclusion, diversity, equity and accessibility (IDEA) workplaces and policies

NRCan recognizes the importance of a diverse and inclusive workforce for the resilience of Canada’s economy and the benefit of Canadian society. To better understand applicants’ approaches to creating more equitable and inclusive workplaces and policies, NRCan is collecting voluntary information that will be aggregated and anonymous. This information will be used to inform future outreach, program development, and efforts to promote IDEA in the clean energy sector.

6.2 Duty to consult

NRCan has a legal duty to consult with Indigenous groups when a contemplated Crown conduct, such as the provision of funding, may have adverse impacts on existing or potential Aboriginal and treaty rights. Federal departments and agencies are responsible for understanding how and when an activity could have an adverse impact on Aboriginal and treaty rights, and consultation should occur prior to the federal government taking any action.

While applicants to the program are not required to consult with Indigenous groups as part of the application process, they will be required to report at the FPP phase if they have already conducted consultation or engagement activities in relation to the project proposal or as part of their ongoing operations or corporate commitments.

6.3 Impact Assessment Act

As per the Impact Assessment Act, NRCan is required to assess whether RD&D projects carried out, in whole or in part, on federal lands are likely to cause significant adverse environmental effects. At the FPP phase, applicants will be asked to identify if the project will be carried out in whole or in part on federal lands. If so, an impact assessment may be required during due diligence for successful applicants.

6.4 Information sharing permissions

During the application process, applicants will confirm whether they provide permission for NRCan to share their application with other relevant funding organizations. For projects that may not obtain funding under the program, this will allow the program to provide the opportunity for maximum exposure and guidance across other federal funding programs or providers.

6.5 Trusted Partners

To facilitate co-funding with provincial/territorial and industry funders, NRCan is working in collaboration with a network of other funding organizations across Canada. By giving NRCan the authority to share your proposal with our “Trusted Partners” (TP), you allow NRCan to explore possible co-funding opportunities, referrals, or follow-on funding opportunities.

Please note that NRCan will only share these applications with TPs where NRCan has a non-disclosure agreement in place and for the purposes of referring proposals for funding consideration or exploring the possibility of co-funding.

6.6 Other conditions

• No Member of the House of Commons shall be admitted to any share or part of the contribution agreements, or any resulting benefit.
• Where appropriate, projects will be subject to appropriate environmental assessments prior to the release of any funds.
• The proponent will comply with the Conflict of Interest Act, the Conflict of Interest and Post-Employment Code for Public Office Holders.
• Funding may be cancelled or reduced in the event that departmental funding levels are reduced by Parliament. Agreements will include provisions to this effect.
• Proponents will be required to acknowledge the financial support of Canada in all public information produced as part of the project.
• As part of project monitoring requirements, NRCan will have the right to visit and inspect all project sites, upon providing a reasonable notice to project proponents.

6.7 Confidentiality and security of information

The Access to Information Act (the “Act”) governs the protection and disclosure of information, confidential or otherwise, supplied to a federal government institution. This Act is a law of public order; as such the Government of Canada, including NRCan, cannot contract out of it.

Paragraph 20 (1) (b) of the Act states that:

• A government institution [such as NRCan] shall refuse to disclose any record requested under the Act that contains financial, commercial, scientific or technical information that is confidential information supplied to a government institution by a third party and is treated consistently in a confidential manner by the third party.

Pursuant to Paragraph 20 (1) (b) of the Act, NRCan will protect the applicant’s confidential information supplied to NRCan from disclosure if:

• The applicant’s information supplied to NRCan contains financial, commercial, scientific or technical information; and,
• The applicant consistently treats such information in a confidential manner.

Accordingly, NRCan will protect the applicant’s confidential information in its possession to the same extent as the applicant protects said confidential information in its own establishment: If the applicant chooses to send the proposal or other confidential information to NRCan by e-mail, NRCan will respond to the proposal by e-mail. Similarly, if the applicant’s correspondence is through regular mail, NRCan’s response will be in like manner. However, in all cases, NRCan will use e-mail correspondence to the applicants for all non-confidential matters.

NRCan recognizes that e-mail is not a secure means of communication, and NRCan cannot guarantee the security of confidential information sent via e-mail while it is in transit. Nonetheless, applicants who regularly use e-mail to communicate confidential information within their own organizations may choose to interact with the program via the program’s email address: eipenergydefence-pieenergiedefense@nrcan-rncan.gc.ca

For more information on this subject, a careful reading of the entire section 20 of the Access to Information Act is greatly encouraged.

7. Technology readiness levels

TRL is a measure used to assess the maturity of evolving technologies (devices, materials, components, software, work processes, etc.) during its development and in some cases during early operations. Generally speaking, when a new technology is first invented or conceptualized, it is not suitable for immediate application. Instead, new technologies are usually subjected to experimentation, refinement, and increasingly realistic testing. Once the technology is sufficiently proven, it can be incorporated into a system/subsystem.

TRL	Short definition	Description	Examples of activities
1	Basic principles observed and reported.	Lowest level of technology readiness. Scientific research begins to be translated into applied research and development (R&D).	Activities might include paper studies of a technology's basic properties.
2	Technology concept and/or application formulated.	Invention begins. Once basic principles are observed, practical applications can be invented. Applications are speculative, and there may be no proof or detailed analysis to support the assumptions.	Activities are limited to analytic studies.
3	Analytical and experimental critical function and/or characteristic proof of concept.	Active R&D is initiated. This includes analytical studies and laboratory studies to physically validate the analytical predictions of separate elements of the technology.	Activities include components that are not yet integrated or representative.
4	Component(s)/subsystem(s) and/or process validation in a laboratory environment.	Basic technological components are integrated to establish that they will work together.	Activities include integration of "ad hoc" hardware in the laboratory.
5	Semi-integrated component(s)/subsystem(s) and/or process validation in a simulated environment.	The basic technological components are integrated for testing in a simulated environment.	Activities include laboratory integration of components.
6	System and/or process prototype demonstration in a simulated environment.	A model or prototype that represents a near desired configuration.	Activities include testing a model or prototype in a simulated or laboratory environment.
7	Prototype system ready (form, fit, and function) for demonstration in an appropriate operational environment.	Prototype is ready for demonstration in an operational environment and is at planned operational level.	Activities include prototype field testing in a real-world operational setting.
8	Actual technology completed and qualified through tests and demonstrations.	Technology has been proven to work in its final form and under expected conditions.	Activities include developmental testing and evaluation of whether it will meet operational requirements.
9	Actual technology proven through successful deployment in an operational setting.	Actual application of the technology in its final form and under real-life conditions, such as those encountered in operational tests and evaluations.	Activities include using the innovation under operational conditions.

7.1 TRL guiding principles

The following principles should be applied when determining the TRL of a technology:

• Start with the broader technology development stage: When determining a TRL, it is best to start with the general development stage of the technology before assessing the specific TRL.
• Err on the side of conservative: If there are uncertainties as to whether a technology is at a certain TRL, the lower TRL should be assigned.
• Ensure the operating environment is well understood: A key aspect of the various TRLs is the testing environment of a technology. It is important to be clear in understanding the real-world conditions expected and if and how the testing environment (for example, laboratory, simulated or operational) represents these conditions.
• A TRL is only valid for the specific operational environment for which it was tested: If a developed technology is to be deployed in an operational environment that was different than the one it was tested for, the technology would no longer be considered fully developed and would need to be tested and refined for the new operational environment to be considered at the same TRL.
• It’s important that the proposed project is considered when determining the TRL, rather than just the core technology.
  • For example, a project testing new feedstocks for a clean fuel production technology previously operated at pilot scale may start at a TRL of 4 or 5 if bench-scale experiments are required, despite the technology itself being at a TRL of 7 and ready for scale-up to demonstration.

For the purpose of determining your achieved and planned TRL, please note:

• Achieved TRL: The achieved TRL is the level that a technology is said to have achieved if it has met all requirements for that specific level and all prior levels. The achieved TRL refers to the level of the technology, and the TRL requirements it has achieved prior to the beginning of the proposed project.
• Planned TRL: The planned TRL is the level that a technology is expected to have achieved by the time of the proposed project completion.

If you are not sure what the achieved TRL of your project is, please check out the TRL assessment tool to help you narrow it down.

8. Disclaimer

NRCan reserves the right to alter or cancel any call for expressions of interest, call for proposals, funding amounts and/or deadlines associated with any program component, or to cancel any application process at its sole discretion. Any changes will be communicated to registered applicants via the NRCan website.

Any costs incurred for the submission of any EOI or of FPP are at the project applicant’s own risk. In all cases, any funding under any submission, review and assessment process will be contingent upon the execution of a contribution agreement.

Until a written contribution agreement is signed by both parties, no commitment or obligation exists on the part of NRCan to make a financial contribution to any project, including any expenditure incurred or paid prior to the signing of such contribution agreement.