Carbon Capture, Utilization, and Storage (CCUS) Front-End Engineering and Design (FEED) Call for Proposals – Applicant Guide

Leveraging over fifty 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. OERD invests in a wide range of organizations, including businesses, industry, non-profits, academia, other levels of government, and Indigenous organizations and funds energy R&D in federal labs and research centres.

1.2 Energy Innovation Program Carbon Capture, Utilization, and Storage (CCUS) Front-End Engineering and Design (FEED) Call for Proposals

Carbon Capture, Utilization, and Storage (CCUS) is a proven and crucial tool for reducing emissions, particularly for sectors that are challenging to decarbonize. CCUS can effectively reduce emissions in hard-to-abate industries such as iron, steel, chemicals and cement production, where it often represents the most cost-effective deep decarbonization option. Furthermore, it enables the production of low-carbon electricity and clean fuels, including blue hydrogen, which can be used to decarbonize a wider range of sectors. By providing a pathway for low-carbon energy sources, CCUS also enhances Canada's economic competitiveness and trade opportunities.

To position Canada as a leader in CCUS solutions, this call for proposals supports proponents undertaking the complex, resource‑intensive engineering and project definition activities required to complete Front‑End Engineering Design (FEED) studies for CCUS projects. A FEED study represents a pivotal stage in the project development lifecycle. It is a detailed engineering effort that follows preliminary and conceptual design studies that fully validate the feasibility of the proposed project and outline the preferred design pathway. The primary purpose of a FEED study is to provide a comprehensive evaluation of the project scope, a detailed Class 3 cost estimate, a refined risk register, and a robust project schedule.

1.3 CCUS FEED Call objectives

This Call will support FEED studies for advanced CCUS projects in Canada, with the aim of addressing the following objectives:

Facilitate the advancement of CCUS capital projects from late-stage demonstration to final investment decisions; and
Advance knowledge sharing on cost-effective CCUS capital project development, helping accelerate the deployment of CCUS projects across Canada.

Eligible recipients

2.1 Eligible Canadian recipients

Eligible Canadian recipients include the following legal entities validly incorporated or registered in Canada:

For profit organizations
Utilities
Indigenous organizations:

Indigenous communities or governments
Tribal Councils or entities that fulfill a similar function (e.g., general councils)
National or regional Indigenous councils, or tribal organizations
Indigenous (majority owned and controlled by Indigenous people) for-profit or not-for-profit organizations

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

The applicant must be the entity that either owns or is responsible for the capital investment for the specific scope of assets associated with the FEED study.

2.2 Project partners

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

Applicants must identify all key partners and their roles in the CCUS value chain, from capture to transport to storage or utilization. This must be supported by official documentation, such as Memoranda of Understanding (MoUs), Joint Venture (JV) agreements, or letters of intent between all involved parties.

Applicants are permitted to work with partners on their project that do not qualify as eligible applicants, such as other government departments, so long as the funding from 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.

3. Eligible projects

3.1 Project scope

FEED projects will be assessed on their value for public funding support, including the solution’s long-term commercial potential and contribution to the growth and maturity of Canada’s CCUS ecosystem, such as the extent to which the CCUS technology or application differs from projects already constructed in a comparable context in Canada.

Projects must fall under one of the following categories:

Point-Source CCUS: Projects focused on the capture of CO₂ from industrial facilities, such as cement plants, iron and steel production, chemical plants, upstream oil and gas plants, upgraders and refineries. This also includes capture from abated natural gas power generation.
Carbon Dioxide Removal (CDR): This category includes negative emissions technologies such as Direct Air Capture (DAC) and Bioenergy with Carbon Capture and Storage (BECCS). For DAC projects, the application must provide detailed evidence of a suitable location that meets the specific needs of DAC technology. This includes a confirmed access to low-carbon energy sources to power the facility and a viable plan for transporting the captured CO₂ to a secure geological storage site.
CCUS Transportation and Storage Infrastructure: Projects centered on the development of dedicated CO₂ transportation pipelines and/or regional storage hubs. As a hub's viability depends on its ability to serve multiple capture projects, applications under this category must provide a detailed plan for the hub's development, including the number of prospective emitters to be connected, a plan for non-discriminatory open access, and an analysis of the CO₂ stream specifications for each potential emitter. The application must demonstrate that the hub can manage the potential for impurities in the CO₂ streams from various sources.

Note: CCUS infrastructure projects for the purpose of enhanced oil recovery are not eligible.

All projects focused on FEED of only part of the CCUS value chain will be required to submit plans for other parts of CCUS value chain that are not directly included in this FEED (i.e. FEED projects for only capture would require supporting documents that contextualize their plans for transport and storage aspects or vice versa).

Projects that are already receiving funding from other NRCan programs may be considered ineligible for this Call.

3.2 Eligible project development status

In order to assess the eligibility of proposals based on stage of development, the program is referring to the front-end loading (FEL) framework for large capital project development, using the following definitions:

Phase	Focus	Activities	Expected cost estimate accuracy range Typical variation in low (L) and high (H) ranges
FEL 1 – Concept / Scoping	High level concept outlined	Outlines concept options, assessment of opportunity and high-level economics, outlines considerations for technology selection	L: -20% to -50% H: +30% to +100%
FEL 2 – Feasibility/Pre-FEED	Evaluation of preferred concept and location and confirmation of viability	Preliminary design basis, CAPEX/OPEX refinement, risk and schedule analysis	L: -15% to -30% H: +20% to +50%
FEL 3 – FEED Study	Full definition of project scope and cost to position for FID discussions	Detailed design, firm cost estimates (i.e., Class 3), execution plan, permitting package	L: -10% to -20% H: +10% to +30%

Eligible projects must be sufficiently advanced in their development to show that the feasibility of the overall concept has been fully assessed, key technical and economic uncertainties have been resolved, and a preferred design pathway has been selected. Eligible projects will have cleared the FEL 2 stage and be prepared to undertake FEL 3/FEED activities in a project supported by funding under this call.

Project selection will be based on an evaluation framework that requires demonstrable proof of technical and engineering maturity, commercial and financial viability, and implementation readiness. The table below outlines the necessary pre-FEED work that an eligible project must have completed, and the series of documents that applicants will be required to submit to demonstrate project eligibility and preparedness for the FEED stage.

Category	Pre-FEED work completed	Required documents
Technical and engineering maturity	Process and technical verification, confirming that the selected technology (or combination of technologies) is feasible, suitable for the intended application, and can meet performance targets. Any remaining minor technical gaps have been identified with plans for how to address. Operational assessments, including expected operating conditions, variability, integration with existing systems, utility requirements, and identification of key operational constraints. If multiple designs or configuration options were assessed, the trade-offs and rationale for the selected approach are documented, including technical, environmental, operational and economic considerations. Process requirements, including material and energy balances, preliminary process flow diagrams (PFDs), and key mass or heat integration schemes. Preliminary equipment sizing, including design assumptions for major equipment (e.g., reactors, compressors, heat exchangers, modular units, columns, power and heat generation units). System-level configuration, such as initial layouts, utility integration, infrastructure needs, and considerations for future expansion or modularization.	Preliminary Design Basis Memorandum (DBM) or Basis of Design (BoD) Heat and mass balance Preliminary diagrams Preliminary layouts or site plans Preliminary equipment lists and equipment sizing summaries Technology assessments Initial HAZID (Hazard Identification Report)
Commercial and financial viability	Preliminary capital cost estimate, including methodologies, assumptions, exclusions, and accuracy range. Preliminary operating cost estimate with assumptions for utilities, labor, maintenance, and feedstock. Other preliminary financial modeling and techno-economic analysis.	AACE Class 4 (Feasibility) cost estimates or equivalent for CAPEX and OPEX Revenue, offtake agreements, and/or business case analyses Financial/techno-economic modelling and sensitivity analysis.
Implementation readiness	High-level project schedule outlining engineering, permitting, procurement, construction, commissioning, and early operations. Risk assessment or risk register that identifies key technical, commercial, regulatory, supply chain, and project execution risks, along with initial mitigation strategies. Key project partners, technology providers, and engineering firms are identified and engaged. Project governance, decision-making processes, and reporting structures are defined. Internal and external resources (engineering, permitting, procurement, commercial) needed for the next phase are allocated or secured. Project has a clear plan for executing the next stage of engineering, including scope, roles, and anticipated deliverables.	Level 2 project schedule Risk assessment or risk register and mitigation plans Formal project governance and stage-gate approval records regulatory plan

3.3 Required knowledge sharing

Successful applicants will be required to participate in knowledge dissemination activities during project execution. Applicants must allocate a portion of their funding toward these activities during the reimbursement period as outlined in Section 4.1.

In addition to the reporting requirements established in Section 10 of the Applicant Guide, all funding recipients under this call are required to:

Publish a final outcomes report online that is shared publicly for the broader benefit of Canada.

3.4 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.

3.5 Project location

While some materials can be sourced from outside of Canada, all project activities must take place within Canada. The project must have significant tangible benefits to Canada and preference will be given to projects with the majority of their benefits, investments, and activities in Canada by applicants, partners, collaborators, or vendors.

Under the Impact Assessment Act (IAA) 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 not 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 IAA. For further information, please see section 11.3.

3.6 Intellectual Property (IP) requirements

Projects are not required to have generated IP prior to applying; applicants may continue to work on IP during the course of the project. Projects can use IP that already exists from outside of Canada as long as it is licensed to the applicant for use in Canada. A successful contribution agreement with NRCan will require that all IP that arises over the course of a project be vest in, or be licensed to, the funding recipient. If no IP is required or expected to be generated over the course of the project, applicants will be required to justify this position.

4. Funding and support

4.1 Contributions

The call is open to projects that request between $3,000,000 and $7,000,000, comprising up to 50% of eligible total project cost (or 75% for Indigenous applicants), over a period of up to a maximum of five years. Funding is available beginning on April 1, 2026.

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

Call contribution percentage (% of total project cost)	Minimum contribution	Maximum contribution	Maximum government stacking percentage (% of total project cost)	Minimum applicant cash contribution	Project life
Up to 50% (75% for Indigenous applicants)	$3,000,000	$7,000,000	50% (100% for Indigenous applicants and majority publicly owned utilities)	Equal or greater than the amount of requested contribution (No minimum for Indigenous applicants)	Up to 5 years

Stacking of funding (i.e. total government support for a project) will be supported to a maximum of 50% of the Total project cost, with Indigenous organizations and utilities that are majority publicly owned eligible for a 100% maximum. The applicant's cash contribution to the project must be equal or greater than the contribution requested from the Program. There is no minimum applicant contribution for Indigenous applicants.

Total project cost refers to the total cost of the project and includes both eligible expenditures (defined in section 5.1) and ineligible expenditures (defined in section 5.2). (Total project cost) = (Eligible expenditures) + (Ineligible expenditures). Total project cost does not include non-permissible expenditures (defined in section 5.3).

Call contribution percentage (% of total project cost) refers to the maximum percentage of funding provided by the Call towards 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 Call 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 Call 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 Call. 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 stacking limit, NRCan will adjust its level of contribution from the project (and seek reimbursement, if necessary) so that the stacking limit is not exceeded. Eligible expenditures are defined in section 5.1. 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 in the form of an asset for which no cash is exchanged but that is essential to the project and that would have to be purchased by the project proponent on the open market, or through negotiation with the provider, if it were not provided by the project proponent.

The Call accepts in-kind contributions as part of the total project cost, subject to the definitions and limitations described in section 9. As per section 5.2, in-kind support is ineligible for reimbursement.

5. Eligible, ineligible, and non-permissible expenditures

5.1 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.
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 (e.g. 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 section 8.

5.2 Ineligible expenditures

Costs ineligible for reimbursement from the Call (but permitted as part of 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 Call 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.

5.3 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.

6. Application process

6.1 How to apply

This call uses a continuous intake model, where applications are accepted and reviewed on a rolling basis until all available program funding has been allocated. There is currently no fixed date by which the call will close to applications. To apply, applicants must complete and submit their Expressions of Interest (EOI) via the application portal.

Phases

The Call’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

Phase 1. Expression of Interest (EOI)
Determine your eligibility to apply – Review the Applicant Guide. Complete and submit an EOI. EOI evaluation – EOIs will be reviewed by a Technical Review Committee , with three possible outcomes: a) if the EOI is deemed to be eligible and aligned with call objectives and the applicant will be invited to the FPP phase; b) if the EOI is deemed to be potentially eligible and aligned with call objectives but incomplete or requiring further clarification, applicants may be offered the opportunity to re-submit their proposal once they’ve addressed any identified issues/deficiencies, and; c) if the EOI is deemed to be ineligible, or misaligned with call objectives, applicants will be notified that they will not be invited to the FPP phase.
Phase 2. Full Project Proposal (FPP) - Invited applicants only
Complete and submit an FPP. FPP evaluation – FPPs will be reviewed by a Technical Review Committee, with three possible outcomes: a) if the FPP is deemed to be eligible and aligned with call objectives and the applicant will be invited to the due diligence phase; b) if the FPP is deemed to be potentially eligible and aligned with call objectives but incomplete or requiring further clarification, applicants may be offered the opportunity to re-submit their proposal once they’ve addressed any identified issues/deficiencies, or; c) if the FPP is deemed to be ineligible, or misaligned with call objectives, applicants will be notified that they will not be invited to the due diligence phase.

Applicants are responsible for ensuring that they meet the eligibility criteria and that their EOI and FPP are fully completed when submitted.

Questions about the Call or the process should be directed to: ccusfeed-cusceiic@nrcan-rncan.gc.ca.

6.2 Additional evaluation criteria

NRCan reserves the right to prioritize projects at the EOI and FPP stage that:

support departmental priorities such as regional balance in Canada, strategic value and socio-economic considerations, and advancing IDEA in the natural resources sector
partner with Canadian organizations (when the project includes partnerships)
source materials, services, technologies and solutions from Canadian sources and suppliers; and
use and generate IP that is vested in Canada

Access the applicant portal

The Government of Canada’s official guidance on Artificial Intelligence (AI) recognizes that generative AI may be a valuable tool to applicants in the preparation of funding applications. In accordance with this guidance, applicants are responsible for ensuring that information included in their applications is true, accurate and complete and that references are appropriately cited. Generative AI in the development of an application for the program should be used for support purposes only such as improving efficiency, assisting non-native English and French speakers, and streamlining the application writing process.

6.3 Next steps and timelines

There is no deadline for EOI or FPP applications, with submissions reviewed on a rolling basis. It should; however, be noted that the time at which submissions are received may impact the order of priority for project review and selection.

If additional information or clarification is needed to complete NRCan’s review of the EOI or FPP, the Program will contact applicants to identify what is required via an information request. The Program will consider the date of reception of the additional information as the new date of reception of the application, and will continue its review accordingly.

6.3.1 Full project proposal phase

NRCan will notify the applicants who are invited to the FPP phase and send them information on the FPP submission requirements. There is no time requirement between the EOI and FPP submissions. As in the EOI phase, if the FPP is incomplete, applicants will be notified and asked to submit the missing information.

The Program will evaluate FPP submissions as they are received, provided that:

The application is complete;
Funds are available and the Project may be eligible for a contribution agreement.

An invitation to the FPP phase does not represent a funding commitment from NRCan. NRCan reserves the right to disqualify a project that is deemed materially different at FPP than the version presented in the EOI application. If invited to FPP, there will be an opportunity for you to fully explain the rationale for any changes since the EOI phase as these changes can have implications on project eligibility.

6.3.2 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 & 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.

6.3.3 Contribution agreement

Any funding under the Call 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.

6.3.4 Service standards

The service standards for NRCan’s programs are available at the following link: Service standards.

7. Definitions

7.1 Program definitions

Accessibility: an overarching goal to realize a barrier-free environment through the proactive identification, removal and prevention of barriers in an organization’s policies, programs, practices and services. A barrier could include anything that hinders the full and equal participation in society regardless of their distinct identities and needs. Removing accessibility barriers ensures all members of society are fully supported and have opportunities to advance.

Contribution: funding provided by Canada under the contribution agreement toward eligible expenditures.

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.

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.

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, self-governing Indigenous entities.

Majority publicly owned utility: organization that provides essential services (e.g., electricity, water, or natural gas) and is majority-owned and operated by one or multiple government entities.

Participation: inclusion of local and/or equity-seeking stakeholders, in the planning, design, and implementation as well as in key decision-making processes. This can include, but is not limited to, partnerships, composition of the project team, hiring practices, training opportunities, ownership of the project, and community engagement/consultation plans.

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.

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.

7.2 Call-specific definitions

Bioenergy with Carbon Capture and Storage (BECCS):A process that captures CO₂ from biomass-fired power or industrial plants, resulting in net-negative emissions.

Carbon Capture, Utilization, and Storage (CCUS):The process of capturing CO₂ from industrial or energy-related sources and transporting it for either long-term storage or utilization.

Direct Air Capture (DAC): An engineered technology that captures CO₂ directly from the ambient atmosphere.

8. Eligible expenditures – costing memorandum

8.1 Salaries and benefits

8.1.1 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.

8.1.2 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.

8.2 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 amount.

8.3 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, e.g. 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)

8.4 Other expenses

8.4.1 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 e.g. testing to comply with environmental standards. All such costs should be identified in the original proposal cost estimates.

8.4.2 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 (e.g. 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.

9. In-kind contributions – costing memorandum

9.1 Purpose, definitions, eligibility, and value

9.1.1 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 section 5.2, 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.

9.1.2 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.

9.1.3 Definitions for this section

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

9.1.4 Eligibility of in-kind contributions

To be eligible as an in-kind contribution:

The contributed asset must be from one of the categories identified below under the heading “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.

9.1.5 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.

9.2 Categories of eligible in-kind support

9.2.1 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.

9.2.2 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 (i.e., within the project proponent's organization), or the incremental cost to the project proponent if it is provided by a third party.

9.2.3 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.

9.2.4 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, e.g. 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)

9.2.5 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 (e.g. 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.

10. Reporting requirements

10.1 Project and outcomes 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, providing adequate technical evidence to demonstrate and ensure that targets and objectives are being met and to monitor progress towards project and program outcomes.

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:

10.2 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;
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.

10.3 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 public report*, using a template supplied by NRCan, that describes the project and its results, which may be translated by NRCan and made publicly available;
A link to the online location of the published final outcomes report referenced in Section 3.3; and
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 context and culturally appropriate may be substituted for Indigenous recipients.

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

Annually, an updated outcomes 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.

10.5 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 nonrepayable 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.

10.6 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. This process is described in the performance measurement and risk strategy for the Program.

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

11. Regulatory, reporting, and other requirements

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

11.2 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 or Treaty rights. Federal departments and agencies are responsible for understanding how and when an activity could have an adverse impact on Aboriginal or 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.

11.3 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.

11.4 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.

11.5 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 or coverage for treatment of sensitive information under the Government of Canada Access to Information Act and Privacy Act.

11.6 Contact us

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

11.7 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.

11.8 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
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:ccusfeed-cusceiic@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.

12. 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 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.