Canada’s economy will need to be powered by clean power and clean fuels to meet its goal of net-zero emissions by 2050
Fuelling the future
Recognizing the essential role of clean fuels, Canada’s Emissions Reduction Plan includes broad economic policies, such as the Clean Fuel Regulations, increases to the carbon pollution price, the Hydrogen Strategy for Canada, and investments to grow the clean fuels market.
Budget 2021 invested $1.5 billion over five years to establish a Clean Fuels Fund to de-risk the capital investment required to build new or expand existing clean fuel production facilities (including facility conversions). Support was also available for feasibility and front-end engineering and design (FEED) studies, and the establishment of biomass supply chains to improve logistics for the collection, supply, and distribution of biomass materials (e.g., forest residues, municipal solid waste, and agriculture crop residues) as a feedstock in clean fuel production facilities. Resources were also available to address gaps and misalignment in codes, standards and regulations related to the production, distribution and end-use of clean fuels.
Budget 2024 announced the retooling of the Clean Fuels Fund and its extension to March 31, 2030. Support will be available to de-risk capital investments and studies that expand Canada’s clean fuel production capacity, and to address gaps and misalignment in codes, standards and regulations. The program will shift to a continuous intake process to deliver funding faster and will streamline negotiations and decision-making processes to expedite delivery.
Indigenous-led building new domestic production capacity
Intake 2 accepting applications
Current funding available: This call for proposals will provide funding for up to $50 million per project to a maximum of 50% of total project costs for capital projects and up to $5M per project to a maximum of 75% of total project costs for studies.
Current program timeframe: For Intake 2, projects must be completed by March 31, 2030
Application deadline: The program is currently accepting proposals. The program has the authority to close the intake at any time, such as when the program has received more completed applications than funds available.
Submission of a complete application does not guarantee funding.
Building new domestic production capacity
Intake 2 accepting applications
Current funding available: This call for proposals will provide funding up to $50 million per project to a maximum of 30% of total project costs for capital projects and up to $5M per project up to a maximum of 75% of total project cost for studies.
Current program timeframe: Projects must be completed by March 31, 2030 for Intake 2
Application deadline: The program is currently accepting proposals. The program has the authority to close the intake at any time, such as when the program has received more completed applications than funds available.
Submission of a complete application does not guarantee funding.
Establishing biomass supply chains
Closed for applications
Funding available: This first national call for proposals is funding up to $5 million per project to a maximum of 50% for non-Indigenous applicants or 75% for Indigenous applicants
Status: This call for proposals is closed.
Developing enabling codes and standards
Help develop enabling codes and standards to support the evolution of new clean fuels technologies as they enter the market.
Benefits of growing the clean fuels market
Growing the clean fuels market will seizing the opportunities for clean fuels to build a sustainable, low-carbon future that will support Canadians through:
Jobs
Creating new clean fuels jobs across Canada in construction and operation, and providing job opportunities for workers in conventional energy sectors.
Economic opportunities
Opening new markets for conventional energy, waste, and cleantech companies, and for agriculture and forestry while becoming a strong industry for regional markets and international exports.
Environmental benefits
Helping reduce emissions in hard-to-abate sectors such as oil and gas extraction, freight, and mining.
Video Transcript
Canada’s net-zero future will be powered by clean power and clean fuels.
We are on our way.
More than 80% of Canada’s electricity comes from clean sources.
Clean fuels like biofuels and hydrogen make up 5% of Canada’s energy supply today but they could make up nearly 60% by 2050.
Producing and using more clean fuels in Canada will help decarbonize transportation and industries like steel and cement making all while keeping energy jobs in Canada.
That’s why the Government of Canada is launching the Clean Fuels Fund
Helping Canada remain an energy supplier of choice in a low-carbon future.
Find out more – nrcan.gc.ca/clean-fuels-fund
We’re taking an all-of-government approach
Including clean fuels in Canada’s net-zero future will take an all-of-government approach, using a comprehensive suite of measures. Here’s how the government is laying the foundation for our clean energy future.
Energy Innovation Program, Clean Fuels and Industrial Switching : We’re providing funding to advance technological solutions to reduce emissions in industrial fuel switching and the production of clean fuels. New technological solutions in these sectors are critical to address hard-to-abate segments of industrial emissions and create pathways for the use of cleaner fuels.
Hydrogen Strategy for Canada: A framework to power Canada’s low-carbon energy future while positioning us to become a world leader in hydrogen technologies.
Carbon capture, utilization and storage strategy (CCUS): Leading the development of a federal strategy that will enable the Canadian CCUS industry to realize its GHG reduction and commercial potential.
Clean Fuel Regulations: This standard is part of Canada’s climate plan to reduce emissions, accelerate the use of clean technologies and fuels, and create good jobs in a diversified economy and across multiple sectors. These sectors include clean technology, agriculture, and low-carbon energy sectors, such as biofuels and hydrogen.
Regulatory Co-operation on Codes and Standards for Low Carbon Fuels in transportation: Governments and industry in Canada and globally are supporting the alignment of codes and standards and the development of new ones, for the production, distribution and use of clean fuels and the electrification of transportation.
Canada’s Infrastructure Bank - Zero Emission Bus Program: The bank is investing $35 billion to attract substantial private and institutional investment in new infrastructure, advise public sponsors on infrastructure priorities, and develop a centre of expertise.
Carbon Pollution Pricing: Canadians see the costs of a changing climate all around us. Climate change is driving stronger storms, wildfires, and record-breaking heat waves. Taking climate action is an enormous opportunity to create jobs and advance economic growth, save households money by increasing their home’s energy efficiency, and ensure the air we breathe is clean and healthy.
Strategic Innovation Fund Net Zero Accelerator: Making sure Canada is a top destination for businesses to invest, grow, and create jobs and prosperity for Canadians is one of the Government's top priorities. The Strategic Innovation Fund's objective is to spur innovation for a better Canada by providing funding for large projects.