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Minister Wilkinson Announces up to $800 Million in Project Funding to Advance Canada’s Clean Fuels Sector

With one of the world’s most comprehensive and detailed climate plans, a wealth of natural resources and a skilled workforce, Canada is establishing itself as a global supplier of choice for clean energy in a net-zero world. Governments worldwide are looking for reliable, affordable, non-emitting forms of energy, and it is in this context that like-minded nations must come together to ensure a future that is sustainable both economically and environmentally.

Yesterday, the Honourable Jonathan Wilkinson, Minister of Natural Resources, announced that approximately 60 projects have been selected to receive funding under the Government of Canada’s $1.5-billion Clean Fuels Fund (CFF). These projects represent a first tranche of the highest-ranking applications from last year’s call for proposals and have a total combined value of more than $3.8 billion. They include production facilities, as well as feasibility and front-end engineering and design studies, spanning seven jurisdictions and covering five different fuel types.

“Today’s significant investments will bolster Canadian competitiveness in the clean fuels space at a time of rising global demand. These projects help create sustainable jobs and grow the economy, all while lowering emissions and protecting the environment.”

The Honourable Jonathan Wilkinson

Minister of Natural Resources 

The Honourable Jonathan Wilkinson
Minister of Natural Resources 

The federal government is undertaking negotiations to finalize the terms of funding for each project, and the total federal investment in these projects will be up to $800 million. This funding will help project proponents address critical barriers to growth in the domestic clean fuels market and lays the groundwork for the low-carbon fuels of the future.

A second tranche of projects, from last year’s call for proposal, is currently being reviewed, with funding decisions expected to be finalized in December. Once successful applicants have been informed, Natural Resources Canada will start contribution agreement negotiations.

Canada’s clean fuels industry is rapidly growing, owing to the global demand to reduce greenhouse gas emissions and bolster energy security. The importance of continued investment into the production, development and distribution of clean fuels together with their infrastructure and technology is clear, as Canada strives to position itself as a global leader with investments such as the CFF.

At today’s announcement, Minister Wilkinson also highlighted a combined investment of more than $8.8 million to six organizations for 10 hydrogen and natural gas refuelling stations to help accelerate the decarbonization of road transportation. Federal funding for these projects was provided throughNatural Resources Canada’s Zero-Emission Vehicle Infrastructure Program (ZEVIP) and the Electric Vehicle and Alternative Fuel Infrastructure Deployment (EVAFIDI).

Today’s announcement is one of a series of significant steps the government continues to take to support sustainable jobs and protect the environment. Minister Wilkinson will continue to work with all partners to establish Canada as the global supplier of choice for clean energy in a net-zero world — ensuring a prosperous and clean future for Canadians from coast to coast to coast. 

Quick facts

  • Launched in June 2021, the Clean Fuels Fund aims to invest $1.5 billion to grow the production of clean fuels in Canada, such as hydrogen, renewable diesel and natural gas, cellulosic ethanol, synthetic fuels and sustainable aviation fuel.
  • The call for proposals for projects to increase domestic clean fuel production capacity is providing funding through conditionally repayable contribution agreements of up to 30 percent of the total eligible project costs, to a maximum of $150 million, per production project and up to $5M for feasibility studies.
  • The funding under ZEVIP and EVAFIDI includes: ○ $3 million to HTEC to install three hydrogenrefuelling stations in British Columbia ○ Over, $2.2 million to FortisBC Energy Inc. to build three natural gas refuelling stations in Delta, Kelowna and Abbotsford, British Columbia ○ $1 million to the University of British Columbia to install one hydrogenrefuelling station in Vancouver, British Columbia ○ $1 million to Carlsun Energy Solutions Inc. to build one hydrogen station in Ontario ○ $1 million to Tomlinson Environmental Services Ltd. to install one natural gas refuelling station in Ottawa, Ontario ○ $647,000 to the County of Vermilion River to build one natural gas refuelling station in Kitscoty, Alberta 
  • Transportation accounts for 25 percent of total greenhouse gas emissions in Canada.
  • Moving to zero-emission vehicles through regulations and investments is a significant part of Canada’s Emissions Reduction Plan to meet Canada’s Paris Agreement target for 2030 and get on track for net-zero emissions by 2050.
  • Investments in charging infrastructure made so far will result in more than 34,500 new chargers coast to coast and have been provided through the Electric Vehicle and Alternative Fuel Infrastructure Deployment Initiative and Zero-Emission Vehicle Infrastructure Program.
  • Budget 2022 provided Natural Resources Canada’s ZEVIP with an additional $400 million, and Canada’s Infrastructure Bank will invest $500 million to deploy an additional 50,000 electric vehicle chargers by 2027.
  • To date, over 150,000 Canadians and Canadian businesses have taken advantage of the federal incentive to purchase a zero-emission vehicle.  

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Natural Resources Canada
Media Relations

Keean Nembhard
Press Secretary
Office of the Minister of Natural Resources

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