Clean Fuels Fund (Canada): How to Apply + Eligible Costs

If your business is planning a clean fuel production project, the Clean Fuels Fund can help cover a major share of your costs. This federal program supports new and expanded facilities that produce low‑carbon fuels needed for Canada’s net‑zero transition. It’s run by Natural Resources Canada (NRCan) and focuses on large, high‑impact projects, not small rebates.

What Is the Clean Fuels Fund?

The Clean Fuels Fund (CFF) is a federal funding program that supports the production and distribution of clean, low‑carbon fuels in Canada. Its goal is to boost domestic supply, lower greenhouse gas emissions, and support Canada’s Clean Fuel Regulations.

The program supports fuels such as:

Clean hydrogen
Advanced biofuels (renewable diesel, ethanol, sustainable aviation fuel)
Other low‑carbon liquid or gaseous fuels

Funding is provided as repayable or non‑repayable contributions. The type of funding depends on your project and its risk profile.

Who Is Eligible for the Clean Fuels Fund?

Eligibility is project‑based and competitive. The Clean Fuels Fund is aimed at industry‑led, commercial‑scale projects. Early‑stage research and development projects are not usually supported.

You may be eligible if:

You are a Canadian business or consortium leading a clean fuels project
Your project is located in Canada
The project increases clean fuel production capacity or distribution
The project delivers measurable GHG reductions
You can show financial strength and secured co‑funding

Public‑private partnerships and Indigenous participation are encouraged in many intakes.

Tools like GrantHub’s eligibility matcher can help you filter clean energy programs by fuel type, project size, and province in seconds.

Eligible Costs

Eligible costs depend on the funding stream and intake, but NRCan usually allows capital and project‑development expenses directly related to clean fuel production.

Common eligible costs include:

Engineering and design (such as front‑end engineering and feasibility updates)
Capital equipment and machinery
Construction and installation
Site preparation and civil works
Fuel upgrading and processing systems
Storage and distribution infrastructure
Monitoring, measurement, and reporting systems
Indigenous consultation and engagement costs (if required)

Costs that are not eligible often include:

Routine operating expenses
Costs incurred before approval
Refinancing existing assets without expanding capacity
General corporate overhead not tied to the project

NRCan reviews costs to ensure they are reasonable, incremental, and essential for clean fuel outcomes.

How to Apply for the Clean Fuels Fund

The Clean Fuels Fund uses targeted intakes. This means there are set periods for applications, not a continuous process. Each intake has its own guide and requirements.

The usual application steps are:

Expression of Interest (EOI)
Submit a high‑level overview of your project, technology, capacity, and emissions impact.
Full Proposal (by invitation)
If shortlisted, provide detailed technical, financial, and environmental information.
Due Diligence
NRCan reviews your engineering plans, financial models, and project risks.
Contribution Agreement
Funding terms are finalized. Only then can you start claiming costs.

Projects are judged on:

GHG reduction impact
Technical readiness
Financial strength and co‑funding
Contribution to Canada’s clean fuels supply

Common Mistakes to Avoid

Applying too early
Projects that are still at the idea stage or lack engineering detail are often rejected.

Underestimating co‑funding requirements
The Clean Fuels Fund rarely covers all project costs. Private financing is important.

Including ineligible costs
Listing costs that don’t qualify can delay review or weaken your proposal.

Ignoring reporting obligations
Funded projects must track emissions, production volumes, and milestones.

Frequently Asked Questions

Q: Is the Clean Fuels Fund currently open?
Intakes open from time to time and are often stream‑specific. Always check NRCan’s official intake notices before preparing an application.

Q: How much funding can a project receive?
Funding amounts vary by project size, technology, and stream. NRCan assesses each project case by case.

Q: Is Clean Fuels Fund funding repayable?
Some projects get non‑repayable contributions, while others must repay. This depends on risk, revenue potential, and public benefit.

Q: What types of fuels qualify?
Eligible fuels include clean hydrogen, advanced biofuels, and other low‑carbon fuels that reduce lifecycle emissions.

Q: Is Clean Fuels Fund funding taxable?
Government contributions are often taxable income. However, some grants may be non‑taxable if used for capital expenditures. Tax treatment depends on your organization and how you use the funds. Always consult a Canadian tax professional for advice.

Clean Energy Funding in Canada: CERRC vs Clean Fuels Fund vs CleanBC (Which Program Fits Your Project?)
What Counts as a Clean or Low-Carbon Project? Eligibility Rules Explained
How Repayable Contributions Work for Energy, Environment, and Clean Technology Funding in Canada

Next Steps

The Clean Fuels Fund is competitive and has complex requirements. Careful preparation is key.
GrantHub tracks active clean energy and fuels programs across Canada and can help you compare which ones fit your technology, budget, and timeline—before you invest months in an application.

Clean Fuels Fund (Canada): How to Apply + Eligible Costs