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Clean Fuels Fund - Building New Domestic Production Capacity

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Domestic production capacity

Status: Call for proposals for intake one closed October 13, 2021.

A call for proposals for intake 2 is launching in early 2025.

Canada’s clean fuels industry must significantly increase its current capacity to fulfill its critical role in achieving our net-zero future. To do this, it will be essential to overcome the barrier of the upfront capital investment that industry requires to develop new clean fuel production facilities and increase capacity.

To address this issue, the Clean Fuels Fund provides the investors with cost-shared, conditionally repayable funding. This financial support aims to help build new clean fuel production facilities or retrofit or expand existing ones in Canada.

Additionally, the fund provides non-repayable funding for feasibility studies, basic engineering studies and detailed front-end engineering studies for new facilities, expansions or conversions of existing facilities. These measures will help accelerate the growth and development of the domestic clean fuels industry.

We encourage you to review the frequently asked questions for additional information.

Program benefits

Funding the build-out of new production capacity will:

grow the domestic production capacity for clean fuels including clean hydrogen, advanced biofuels, renewable natural gas, and sustainable aviation fuel, across Canada

offer new opportunities for Canada’s energy sector in the transition to producing cleaner sources of energy

support Canada’s efforts to reach net-zero by 2050

position Canada globally to reap economic, environmental, and social benefits of the energy transition
 

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