Canada launches $1.5 billion Clean Fuels Fund

By Erin Voegele | June 23, 2021

The government of Canada on June 21 launched a C$1.5 billion Clean Fuels Fund with a call for proposals for projects that will increase the country’s capacity to produce clean fuels. Applications are due Sept. 29, 2021.

The Clean Fuels Fund has three separate components. The first will provide $1.38 billion to support the build-out of new, and expansion of existing, clean fuel production capacity and facility conversions or associated feasibility, engineering and FEED studies. The second provides $30.4 million to support the establish of biomass supply chains and associated feasibility assessments. The third allocates $19.4 million to support the development of critical codes, standards an regulations.

Eligible fuel types include, but are not limited to, hydrogen, ethanol, renewable diesel, co-processing of biocrude, sustainable aviation fuel (SAF), synthetic fuel, and renewable natural gas (RNG). Eligible liquid fuels must have a carbon intensity at or below 50 grams of CO2 equivalent per megajoule (gCO2e/MJ). The carbon intensity of eligible gaseous fuels must be at or below 36 gCO2e/MJ.

Eligible recipients must legal entities validly incorporated or registered in Canada, including not-for-profit and for-profit organizations. 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 $150 million, per project.

Additional information is available on the Natural Resources Canada website