Feds launch $1.5 billion Clean Fuels Fund

Clean fuels fund

Program to contribute toward Canada’s 2050 zero emissions target  

In April 2021, the federal government doubled-down on the Nations emissions reduction target by committing to a 40-45% output level below 2005 levels, by 2030. By 2050, Canada hopes to reach its zero emissions target, along with over 120 countries including all other G7 nations.

Achieving net-zero would mean that Canada would either emit zero greenhouse gas emissions or would offset our emissions. To incentivize private sector players, recently announced funding programs launched to create jobs in the sector and help emissions producers pivot toward net-zero.

“Clean fuels lower emissions, create jobs, increase our competitiveness and help us reach our climate goals. The Clean Fuels Fund is how we get to net-zero by 2050.”

The Honourable Seamus O’Regan Jr., Minister of Natural Resources

Fundingportal’s AI-driven awards tracking system indicates that since January of this year, 56 cleantech projects have received a total of over $295 million in funding.

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Clean Fuels Fund aims to help with upfront capital required for clean fuels production

On June 21st, 2021, as earmarked in the 2021 federal budget, a $1.5 billion program called the Clean Fuels Fund was launched by the Government of Canada. The program’s goal is to help companies with the upfront capital required to fund their clean fuels production. This will help Canada grow its domestic production capacity for clean fuels, in addition to creating opportunities for its energy sector and improving its position on a global scale.

Eligible applicants and projects  

A wide range of companies and organizations can apply for the program, including private sector companies, research and industry associations, energy and gas utilities, Indigenous organizations, and more.

Eligible projects include capital clean fuel production projects that are designed for commercial deployment. Many types of feasibility studies and facility expansion and conversion projects are also eligible for funding.

Program timelines

The program is now open and interested parties can begin submitting their applications and supporting documentation. The deadline for submitting applications is September 29, 2021.

Once the program closes, the government plans to begin reviewing applications in the fall of 2021 and will start creating contribution agreements with those receiving funding by the spring of 2022. Final projects will need to be approved by winter 2022, and all projects receiving funding must be completed by March 31st, 2026.

The application must include a description of the project, along with its benefits, milestones, a business plan, a detailed budget, and any additional documentation that supports its viability.

With a total of $17.6 billion earmarked in the 2021 federal budget toward clean initiatives, the country is well poised to help combat climate change and maintain Canada’s position as a global leader.

Melanie Tabet

Melanie Tabet is chief marketing officer at Fundingportal. Her marketing and communications career spans nearly two decades, and includes leadership roles in software, travel and government funding organizations. In addition to driving strong marketing, branding and communications results, she has published numerous thought leadership articles on the topics of branding, customer experience, customer centricity, technology, and finance in industry magazines such as Forbes. She holds a degree in Commerce (Marketing) from Concordia University’s John Molson School of Business in Montreal, and is a passionate marketer, effective communicator, analytical thinker, and strong leader.

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