Canada offers funding for clean fuels production, transport and storage projects
March 5, 2025
BY Erin Voegele
Natural Resources Canada’s Energy Innovation Program has announced it is now accepting applications for funding to support clean fuels production and clean fuels transportation and storage projects.
The call for proposals targets proposals for research and development, pilot and demonstration projects that that support the development of clean fuel technologies. Eligible clean fuels include renewable diesel, sustainable aviation fuel (SAF), biobased methanol, bio-crude, bio-oil, cellulosic ethanol, bio-hydrogen, renewable syngas, and renewable natural gas (RNG). Other eligible clean fuel technologies include low-carbon hydrogen derived from water or abated natural gas; ammonia made from low-carbon hydrogen and nitrogen; and synthetic fuels creased using low-carbon hydrogen and non-emitting energy, such as synthetic SAF or methanol.
The funding opportunity is also open to other eligible technologies using biomass that are related to clean fuels production, including primary and secondary conversion technologies, and technologies that facilitate the use of low-impact feedstocks, including those for fuel-forward feedstock densification and innovative algae and cyanobacteria cultivation technologies.
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For fuels and products derived from biomass, eligible feedstocks include plant waste, animal waste, organic industrial waste, source-separated organic municipal solid waste, mixed organic and other waste, or purpose grown energy crops.
Preference will be given to projects that achieve at least a 75% reduction in greenhouse gas (GHG) emissions when compared to fossil fuels, improve integration of fuel production with intermittent sources of input power, or adopt a decentralized or flexible approach to clean fuel production.
Ineligible projects include those related to unabated natura gas production; produce first generation biofuels such as ethanol or biodiesel; primarily use lipid or food-based feedstocks; focus on innovation in pelletization or torrefaction technologies; or construct, commission, and/or test demonstration-scale facilities for materials-driven biorefinery projects.
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The funding opportunity is divided into two topic areas. The first focuses on clean fuels production, with the aim to advance innovation production technologies; reduce the lifecycle carbon intensity (CI) of clean fuels; increase the availability of low-impact feedstocks for clean fuels production; and improve and assess the logics, economics and scalability of clean fuel production processes.
The second topic area focuses on clean fuels transportation and storage, with the aim to improve the safety and integrity of transport materials and storage methods; develop more efficient transport and storage solutions; facilitate the integration of clean fuels into existing energy infrastructures; and develop novel non-infrastructure solutions for the sale and efficient transportation of low-volume clean fuels.
Eligible applicants must be incorporated or registered in Canada.
Additional information is available on the Natural Resources Canada website.
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