Calgary, AB — The Fuel Innovation Fund has launched the Future Fuels Challenge, a new $50 million funding initiative aimed at accelerating the deployment of technologies that reduce the carbon intensity of transportation fuels across Canada.
The Challenge is the first annual competitive funding call under the Fund. It will provide regulated fuel suppliers, industry innovators, and technology developers with an opportunity to advance projects that deliver measurable greenhouse gas (GHG) reductions in alignment with Canada’s Clean Fuel Regulations.
“Too often, our oil and gas producers and refiners are required to invest significant resources to comply with federal rules. The Future Fuels Challenge reinvests those dollars in our industry, keeping those dollars working here where they can reduce emissions, support innovation, and strengthen the competitiveness of Alberta’s refining sector.”
Grant Hunter, Minister of Environment and Protected Areas
“The Challenge helps move low-carbon innovations from deployment to commercialization, filling a critical gap faced by technology developers. We’re looking forward to accepting applications from proponents across Canada to help scale solutions that can make a real impact.”
Justin Riemer, CEO, Fuel Innovation Fund
The program was developed in collaboration with industry stakeholders, including the Canadian Fuels Association (CFA).
“CFA was pleased to collaborate in the development of this important program. This new funding represents a strong opportunity to advance low-carbon fuel projects, technologies, and infrastructure that will deliver direct, measurable emissions reductions across Canada.”
Bob Larocque, President and CEO, CFA
The annual competition is open to a broad range of applicants, including technology developers and organizations advancing clean transportation fuel supply in Canada. Both entities regulated under the CFR, as well as non-regulated entities, are eligible to apply.
The Challenge targets a wide spectrum of emissions reduction technologies aligned with Canada’s Clean Fuel Regulations, including but not limited to:
- energy efficiency, optimization, electrification, fuel switching, and new processes at refineries and fuel production facilities
- onsite clean electricity and heat production within the fuels sector
- reduction of upstream emissions in the fuel supply chain, including methane emissions reduction
- carbon capture, utilization, and storage (CCUS) at refineries or fuel production facilities
- co-processing of biogenic feedstocks at refineries
- production of low-carbon-intensity fuels, including biofuels, synthetic fuels, e-fuels, renewable natural gas, hydrogen, and similar.
Successful applicants may request between $1 million and $10 million per project, with funding covering up to 50 per cent of eligible expenses.
Applications are due by June 10, 2026, 5 p.m. Mountain Daylight Time (UTC-6h), and an informational webinar will be held on May 4, 2026, 10-11 a.m. Mountain Daylight Time (UTC-6h).
Administered by Emissions Reduction Alberta (ERA), the projects will be selected through a rigorous, transparent evaluation process overseen by an independent Fairness Monitor. While this marks the first competitive funding call under the Fuel Innovation Fund, ERA brings more than 17 years of experience investing in clean technology and in advancing clean fuels.