Recognizing the role that clean fuels will play in helping Canada achieve net-zero by 2050 and the importance of Indigenous business and communities in the pursuit of such goal, the Minister of Natural Resources launched a call for proposals for Indigenous-led projects on February 11, 2022 to help build new or expand existing clean fuel production capacity in Canada (the "Program"). This follows the announcement of the 2021 Canadian federal budget whereby $1.5 billion will be used to establish the Clean Fuels Fund, which aims at de-risking the capital investment required in such projects. The Program is a component of the Clean Fuels Fund and was informed by feedback the Canadian government solicited from interested Indigenous business and communities.
Eligible Applicants and Projects
Eligible applicants for the Program include Indigenous organizations or registered Indigenous businesses or communities including not-for-profit and for-profit organizations that can demonstrate a minimum of 50% Indigenous ownership. Such applicants can include:
- Indigenous Communities;
- Development corporations;
- Electricity or gas utilities;
- Private sector companies;
- Industry associations;
- Research associations;
- Standards development organizations; and
- Academic institutions.
Projects eligible for funding under the Program include:
- Capital clean fuel production projects that use fuel production technologies in advanced stages of technological readiness and that are designed for commercial deployment; and
- Feasibility studies, basic engineering studies and detailed front-end engineering studies to assess the new build or expansion of low carbon fuel production facilities. In addition, feasibility studies to assess the techno-economic feasibility of blending hydrogen into natural gas systems.
Applicants under the Program may apply for a feasibility study, front-end engineering study or a production project through a single application or separate applications. It is important to note that any projects under the Program must be completed and the facilities commissioned by March 31, 2026.
Available Support
Under the Program, feasibility and front-end engineering studies can receive up to 75% of eligible costs to a maximum of $5 million and production projects may receive support of up to 50% of total eligible costs to a maximum of $150 million per project.
Next Steps
Applications under the Program are ongoing and will be accepted until funding is no longer available. Once submitted, each proposal will undergo the following review process:
- Completeness review;
- Mandatory criteria review;
- Evaluation Committee;
- Investment Committee validation; and
- Final project decision.
Once an eligible project has undergone the review process and been approved, the successful applicant will enter into a contribution agreement with the Government of Canada.
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