The Government of Canada is investing CAD$11 million in alternative fuel projects in an attempt to lower energy costs and facilitate the global transition to net-zero emissions.
Member of Parliament Marcus Powlowski, announced the investment on Thursday on behalf of the Minister of Energy and Natural Resources, Jonathan Wilkinson.
The funding supports the transition to more affordable, lower-carbon fuels in high-emitting industries, including biomass collection, transportation, and processing. It also accelerates Canada’s development of high-potential non-traditional energy sources, such as hydrogen.
The government strengthens its commitment to advancing Canada’s clean and alternative fuel sectors through these investments. Furthermore, this support ensures sustainable economic growth by enhancing energy supply chains, creating good, well-paying jobs in the energy sector, and reducing pollution.
The Energy Innovation Program (EIP) is providing CAD$5.5 million in funding, distributed across several initiatives.
The Industrial Waste Technology Center in Quebec will receive CAD$2.55 million, while PyroGenesis Inc., also in Quebec, is allocated CAD$424,000.
CRH Canada Group Inc. in Ontario is set to receive CAD$1.5 million, and Greenfield Global Inc. in Alberta will benefit from CAD$1 million.
Additionally, the Clean Fuel Fund (CF) is supporting clean energy studies with CAD$3.52 million allocated to Atura H2 LP in Ontario, CAD$2.25 million to Wanagekong-Biiwega’iganan Clean Energy Corporation in Ontario, and CAD$92,500 to Beausejour Brokenhead Development Corporation in Manitoba.
“We have the natural resources, technologies and skilled workforce to become an energy superpower in a world that is pressing to reduce emissions,” said Wilkinson.
“Low-carbon fuels represent huge economic opportunities: they will play a crucial role in the future development of key economic sectors such as aviation, freight transportation and heavy industry.”
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Investment is part of larger plan to reach net zero carbon emissions
This investment comes as part of a larger package the Government of Canada has been implementing for years.
The government is investing nearly CAD$1.8 billion to expand the biofuels industry and accelerate the transition to a low-carbon economy. Through Natural Resources Canada, CAD$776.3 million has been allocated from the 2024 federal budget to the renewed Clean Fuels Program (CPF), supporting clean fuel projects between 2024–25 and 2029–30.
Additional contributions come from the Energy Innovation Program (EIP), which advances clean energy technologies, funds research, and supports demonstration projects to help Canada achieve its climate goals.
The federal government is further fostering the development of the clean fuel sector through regional energy and resource tables. These partnerships with provincial, territorial, and Indigenous leaders, alongside key stakeholders, aim to identify and advance shared economic priorities for a sustainable, low-carbon energy future.
Now that Prime Minister Justin Trudeau has stepped down, there are questions about whether or not an incoming government would scrap this and any other program. Specifically, the leader of the Conservative Party of Canada, Pierre Polievre.
Polievre has so far pledged only to repeal the federal carbon tax, which he characterizes as “inflationary.” He has also expressed intentions to dismantle specific environmental legislation, including the Oil Tanker Moratorium Act and the Impact Assessment Act, referring to them as “anti-energy” laws.
While Poilievre has been vocal about these positions, he has not provided detailed plans regarding other net-zero initiatives or programs. Notably, he has remained silent on whether he would maintain the federal industrial carbon pricing program.
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