Canada kicks off call for proposals under CAD$1.5 billion Clean Fuels Fund

The Canadian government has launched a CAD$1.5 billion Clean Fuels Fund to help reach net zero by 2050. Seamus O’Regan Jr., Canada’s natural resources minister, officially kicked off the fund with a call for proposals for projects that 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.

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

The fund 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 development of necessary codes and standards. These investments will open up new opportunities for both traditional feedstock products, like canola and forest feedstock, as well as new value streams.

“The new Clean Fuels Fund, in combination with the Clean Fuel Standard, will create jobs, grow our economy and build a healthier future for our children and grandchildren,” said Jonathan Wilkinson, Canada’s minister of environment and climate change.

The call for proposals is open until Sept. 29. 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.