Energy Innovation Program: CCUS Utilization (Carbon Capture) — How to Apply

Energy Innovation Program: CCUS Utilization (Carbon Capture) — How to Apply

Carbon capture projects often stop at the utilization stage. Turning captured CO₂ into a useful product is hard. It takes a lot of money. It needs special skills. There is also risk. The Energy Innovation Program: CCUS Utilization stream gives Canadian businesses and research teams a chance to move these technologies from the lab to real life with federal funding from Natural Resources Canada (NRCan).

This guide covers how the program works, who can apply, and how to build a strong application.

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What Is the Energy Innovation Program – CCUS Utilization Focus?

The Energy Innovation Program – Carbon Capture, Utilization and Storage (Utilization Focus) is a federal research and development funding call from NRCan. The program supports projects that turn captured CO₂ into useful products or industrial inputs instead of just storing it underground.

Key facts:

• Program status: Open (as of December 23, 2024)
• Jurisdiction: Federal (Canada-wide)
• Funding type: Non-repayable contribution (mainly for R&D)
• Administered by: Natural Resources Canada

This stream is part of Canada’s clean energy and emissions reduction plan. It focuses on technologies that can grow in Canadian industries.

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Who Is Eligible to Apply?

The Energy Innovation Program: CCUS Utilization is for groups with the skills and resources to do applied research and development.

Eligible applicants include:

• For-profit Canadian companies (like clean tech startups and industrial businesses)
• Research organizations (such as universities and applied research institutes)
• Consortia (where companies work with researchers or technology experts)

Project requirements:

• The project must be carried out in Canada
• It must focus on carbon capture utilization, not only storage
• It must show clear technical merit and innovation

If you are unsure if your company or partnership qualifies, you can use GrantHub’s eligibility matcher to check federal clean energy programs by applicant type and project activity.

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What Types of CCUS Utilization Projects Are Funded?

The program supports projects that use captured CO₂ as a resource.

Eligible project activities include:

• Turning CO₂ into fuels, chemicals, or plastics
• Using CO₂ in building materials like concrete or aggregates
• Using CO₂ in industrial processes or mineralization
• Pilot or demonstration projects that test the technology at a larger scale

Projects should be at the research, development, or pre‑commercial demonstration stage. Full commercial roll-out projects do not qualify.

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How Much Funding Can You Receive?

NRCan does not set a single grant amount for the CCUS Utilization stream. Instead:

• Funding amounts depend on your project, technology stage, and costs
• Contribution levels are negotiated for each project
• Funding is usually non-repayable for eligible R&D activities

Applicants should be ready to show:

• A clear and realistic project budget
• Other sources of funding (cash or in‑kind)
• How federal funding will help achieve results that would not happen otherwise

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How to Apply

Applying to the Energy Innovation Program: CCUS Utilization is a structured and competitive process.

Step 1: Review the official funding call
Check that your project matches the utilization focus and current intake rules.

Step 2: Define your project clearly
NRCan wants to see:

• Clear technical goals
• Measurable results
• A plan for future use or commercialization

Step 3: Build your application package
Your package should include:

• A detailed project proposal
• Technical plans and methods
• Budget and funding sources
• Details about project partners

Step 4: Submit through NRCan’s process
NRCan sets deadlines and instructions for each call. These may change, so check the latest details.

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Common Mistakes to Avoid

1. Focusing on storage instead of utilization
   Projects that only store CO₂ do not fit this stream.

2. Weak market or use case
   NRCan expects a real use case and market plan, even at the R&D stage.

3. Project not ready
   Early ideas without proof or testing often do not succeed.

4. Ignoring stacking limits
   You can often combine government funding, but there are caps and you must report all sources.

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Frequently Asked Questions

Q: Is Energy Innovation Program funding repayable?
No. Funding for CCUS utilization projects is usually a non‑repayable contribution for eligible R&D activities.

Q: Can small businesses apply, or is this only for large firms?
Small and medium‑sized businesses can apply if they meet the technical and project requirements.

Q: Can this funding be combined with SR&ED?
Stacking may be possible, but government contributions usually reduce eligible SR&ED expenses and must be reported.

Q: Are CCUS grants considered taxable income?
Most government grants are taxable and should be discussed with your tax advisor.

Q: Do projects need industry partners?
Not always, but projects with strong industry involvement often score higher for impact and growth.

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See Also: Related Grant Topics

• Energy, Oil, Gas, and Petrochemical Incentives: Project Eligibility Guide
• What Counts as a Clean or Low-Carbon Project? Eligibility Rules Explained
• TRL 3–7 Requirements Explained for Alberta Energy & Upgrading Programs

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Next Steps

The Energy Innovation Program: CCUS Utilization is a good fit if your business is working on ways to turn captured carbon into something useful. Finding matching funds and applying at the right time can be hard.

GrantHub tracks active grant programs across Canada, including federal clean energy and CCUS funding. Checking which programs match your technology, location, and project stage can save you time and help you plan your next move with confidence.