Canada has launched the $1.5-billion Clean Fuels Fund with a call for proposals for projects that increase Canada’s capacity to produce clean fuels. Seamus O’Regan Jr., Minister of Natural Resources, made the announcement during the World Hydrogen Technologies Convention hosted by the Canadian Hydrogen and Fuel Cell Association and supported by the International Association for Hydrogen Energy.

Introduced in the strengthened climate plan, A Healthy Environment and a Healthy Economy, and reaffirmed in Budget 2021, the fund grows the domestic clean fuels market, supports the implementation of the Clean Fuels Standard and delivers on early actions outlined in the Hydrogen Strategy for Canada.

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.

It 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 the development of essential codes and standards. These investments benefit farmers, grain handlers, forest harvest operators, saw mills and municipal waste services by opening up new opportunities for both traditional feedstock products, such as canola and forest feedstock, as well as new value streams from agriculture, forest and municipal.

The call for proposals for projects to increase domestic clean fuel production capacity is open until 29 September 2021. Natural Resources Canada will provide funding through conditionally repayable contribution agreements of up to 30% of the total eligible project costs, to a maximum of $150 million, per project.