The Canadian government wants the country to be a leader in supplying clean energy worldwide and has announced the first clean fuel projects that will receive close to a billion in federal funding.
On Monday, Minister of Natural Resources Jonathan Wilkinson announced the first 60 projects that have been selected to receive funding under the Canadian government’s $1.5 million Clean Fuels Fund. The government is still negotiating the last terms of the funding but expects the total federal investment in these projects to be up to $800 million.
The Minister aims to help projects address critical barriers to growth in the domestic clean fuels market and lays the groundwork for low-carbon fuels in the future.
The Canadian government aims to invest $1.5 billion in clean energy projects over the next years. The Clean Fuels Fund was launched in June last year and it expects to grow the production of clean fuels such as hydrogen, renewable diesel, cellulosic ethanol, synthetic fuels and sustainable aviation fuel.
The first projects selected are worth around $3.8 billion in total and include production facilities as well as feasibility and front-end engineering and design studies, which span seven jurisdictions and cover five different fuel types.
The projects were selected based on the applications from a 2021 call for proposals.
“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,” said Wilkinson.
The second wave of funding for clean fuel projects is currently being reviewed and expected to be finalized in December.
We welcome today’s announcement from @NRCan Minister @JonathanWNV & the up to $800 Million in project funding to advance 🇨🇦 ’s #cleanfuels sector. This is an important step towards unlocking the potential of #lowcarbon #transportation #fuels as we continue #Drivingto2050 #CDNpoli https://t.co/wqmZTo36az
— Canadian Fuels Association (@CanadianFuels) November 14, 2022
Minister announces $8.8M investment in hydrogen and natural gas refueling stations
Wilkinson also announced a combined investment of more than $8.8 million to six organizations for 10 hydrogen and natural gas refueling stations with the goal of helping accelerate the decarbonization of road transportation.
Federal funding for these projects came through Natural Resources Canada’s Zero-Emission Vehicle Infrastructure Program (ZEVIP) and the Electric Vehicle and Alternative Fuel Infrastructure Deployment (EVAFIDI).
The government is funding the projects through conditionally repayable contribution agreements of up to 30 per cent of the total eligible project costs to a maximum of $150 million per production project and up to $5 million for feasibility studies.
The companies and government branches funded by ZEVIP and EVAFIDI include the Hydrogen supply firm HTEC, FortisBC Energy Inc., The University of British Columbia, Carlsun Energy Solutions Inc., Tomlinson Environmental Services Ltd. and the County of Vermilion River.
According to the Ministry, transportation accounts for 25 per cent of total greenhouse gas emissions in Canada. A significant part of Canada’s $9.1-billion Emissions Reduction Plan to meet Canada’s Paris Agreement target for 2030 is to move towards zero-emission vehicles through regulations and investments.
Canada’s charging infrastructure investments made so far will result in more than 34,500 new chargers across the country.