Federal Programs

Over the past decade, the Canadian government has made a clear commitment to renewable fuels and advanced green technologies through timely and effective programs and grants. These programs are meant to establish a self-sufficient industry by aiding in initial research, technology development, demonstration projects and feedstock availability. These programs include:

Environment Canada

Renewable Fuel Regulations

  • On September 1, 2010, the government of Canada announced the finalization of Federal Renewable Fuel Regulations requiring an average of 5% renewable content in gasoline across Canada. This Renewable Fuel Mandate came into effect on December 15th, 2010. The full regulations are available online.
  • In addition, the Government of Canada announced a July 1, 2011 start date for an average 2% renewable fuel content in diesel fuel and heating distillate oil with the compliance period ending December 31, 2012. Regulations are available online now.

Agriculture and Agri-Food Canada

Biofuels Opportunities for Producers Initiative (BOPI)

  • The Biofuels Opportunities for Producers Initiative (BOPI) ended on March 31, 2008.
  • BOPI was an initiative designed to help farmers and rural communities hire experts to assist in developing business proposals and feasibility and other studies that were necessary to create and expand biofuels production capacity by agricultural producers.

ecoAgriculture Biofuels Capital Initiative (ecoABC)

  • The ecoAgriculture Biofuels Capital Initiative (ecoABC) is a four year, $200 million federal program that provides repayable contributions of up to $25 million per project for the construction or expansion of transportation biofuel production facilities.
  • Funding is provided for projects that use agricultural feedstocks to produce biofuels and that have new agricultural producer equity investments in the projects equal to, at minimum, five percent (5%) of the total eligible project costs.
  • The deadline for the construction or expansion of biofuels facilities funded by ecoABC has been extended from March 31, 2011 to September 30, 2012.
  • A total of 23% of the $186,000,000 available to ecoABC has been allocated.

Natural Resources Canada

ecoENERGY for Biofuels

  • The ecoENERGY for Biofuels Program supports the production of renewable alternatives to gasoline and diesel and encourages the development of a competitive domestic industry for renewable fuels.
  • The Program provides an operating incentive to facilities that produce renewable alternatives to gasoline and diesel in Canada.
  • ecoENERGY for Biofuels will invest up to $1.5 billion over nine years in support of biofuel production in Canada. Administered by Natural Resources Canada, the ecoENERGY for Biofuels Program runs from April 1, 2008 to March 31, 2017.
  • Recipients will be entitled to receive incentives for up to seven consecutive years.
  • The final round of funding is now closed.

 Ethanol Expansion Program (EEP)

  • The Ethanol Expansion Program (EEP) aims to increase domestic production and use of ethanol, a renewable transportation fuel, and reduce transportation-related greenhouse gas (GHG) emissions.
  • The EEP provided contributions, with repayment terms, toward the construction financing of new or expansion fuel ethanol production facilities in Canada. These plants are now built and are producing ethanol at a collective nameplate capacity of approximately 1 billion litres per year.

Biodiesel Research

  • Before biodiesel can enjoy widespread commercial viability in Canada, more research and development must be conducted to identify cost-effective ways for production and distribution and address on-road performance including cold weather issues.
  • As part of the Climate Change Action Fund, the Government of Canada, through Natural Resources Canada and the National Research Council , helped to fund the construction of a small demonstration plant in Oakville, Ontario. Now transformed into a full commercial plant in Hamilton at BIOX Corporation.
  • Biodiesel (B-5 and B-20) has been tested in 155 buses in downtown Montréal as part of a demonstration project funded in part by the Government of Canada and the Quebec provincial government. The aim was to study how biodiesel works in real-life conditions, particularly in cold weather, and to determine the feasibility of supplying biodiesel to a mass transit company such as the Société de transport de Montréal (STM) . The project also assessed the economic and environmental impact of using biodiesel.
  • Saskatoon Transit Services is testing biodiesel by running two buses on B-5, along with two "control" buses that run on conventional diesel. Over two years, each bus will be monitored and evaluated for emissions, fuel economy and engine wear.
  • The National Renewable Diesel Demonstration Initiative (NRDDI) supports projects that demonstrate how renewable diesel fuel will perform under Canadian conditions in advance of the proposed renewable fuels regulation that would require an average annual 2% renewable content in diesel fuel and heating oil starting July 1, 2011 subject to technical feasibility. This is a part of the Government of Canada's Renewable Fuels Strategy. Off road components involved, rail, farm equipment and marine. The NRDDI final report was released in October 2010.

Alternative Fuels

  • The Alternative Fuel site has been developed by the Fuels Policy and Programs Division within the Office of Energy Efficiency.
  • Offers information and advice for both personal and business uses of renewable fuels.

Sustainable Development Technology Canada

Next Gen Biofuels Fund™

  • The $500M NextGen Biofuels Fund™ is positioned downstream from the SD Tech Fund™ and bridges the gap between technology and market development.
  • This fund is aimed at supporting the establishment of first-of-its-kind commercial scale demonstration facilities for the production of advanced renewable fuels and co-products. 
  • The purpose of the Fund is to encourage retention and growth of technology expertise and innovation capacity for cellulosic ethanol and biodiesel production in Canada. 
  • This program is able to fund up to 40% of eligible project costs, or to a maximum of $200M.
  • All cellulosic ethanol and new biodiesel technologies, once they have been successfully demonstrated at the pilot scale, are also eligible.
  •  This outcome will enable larger volumes of advanced renewable fuels to be produced, helping Canada achieve its current renewable fuel standard using environmentally superior technologies.
  • Advanced biofuels are derived from non-traditional renewable feedstocks, such as corn stocks, wood chips, fast-growing grasses, agricultural residues, and forest biomass. 
  • These advanced renewable fuels contribute to clean air, clean water and clean land, which address climate change and improve the productivity and the global competitiveness of the Canadian industry.

SD Tech Fund™

  • The $550M SD Tech Fund™ is aimed at supporting the late-stage development and pilot, pre-commercial demonstration of clean technology solutions, like advanced renewable fuels.
  • This important one-time investment bridges the gap between development and demonstration that is critical for an emerging industry, such as renewable fuels.
  • Advanced renewable fuels contribute to clean air, clean water and clean land, which address climate change and improve the productivity and the global competitiveness of the Canadian industry.
  • SDTC does not require any repayments of the financial contributions it provides to funded projects through the SD Tech Fund ™.
  • This fund will ensure that Canadian companies can innovate and compete on a level playing field with our international competitors.