Canada seeks projects under US$1.2 billion Clean Fuels Fund

Canada's Minister of Natural Resources has officially launched the CAD1.5 billion (US$1.2 billion) Clean Fuels Fund with a call for proposals for projects that will increase the country’s capacity to produce clean fuels.

The fund supports building new or expanding existing clean fuel production facilities, including hydrogen, renewable diesel, synthetic fuels, renewable natural gas and sustainable aviation fuel. It also supports feasibility and front-end engineering and design studies that will create jobs and enable the sector to grow at the size and pace required to contribute to Canada’s climate goals.

It will also establish biomass supply chains to improve logistics for the collection, supply and distribution of biomass materials, such as forest residues, municipal solid waste and agriculture crop residues, as well as the development of essential codes and standards. These investments benefit farmers, grain handlers, forest harvest operators, saw mills and municipal waste services by opening up new opportunities for both traditional feedstock products, like canola and forest feedstock, as well as new value streams from agriculture, forest and municipal.

The call for proposals for projects to increase domestic clean fuel production capacity is open until September 29, 2021. Natural Resources Canada will provide funding through conditionally repayable contribution agreements of up to 30 percent of the total eligible project costs, to a maximum of CAD150 million (US$119.5 million), per project.

The application period is now open. The applicant’s guide and application form are available here.