Funding
Future Fuels Challenge
Announcement
Program launched April 22, 2026.
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About
The Future Fuels Challenge is a flagship initiative under the Fuel Innovation Fund, administered by ERA, designed to accelerate the development and deployment of innovative low-emission fuel technologies.
This annual competitive funding call supports projects that deliver measurable greenhouse gas (GHG) reductions, enable the commercialization of novel solutions, and strengthen Canada’s clean energy economy. The Challenge focuses on technologies that can significantly reduce the lifecycle carbon intensity of transportation fuels and contribute to Canada’s Clean Fuel Regulations objectives.
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).
An informational webinar was held on May 4, 2026, 10-11 a.m. Mountain Daylight Time (UTC-6h), watch the recording below.
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Deadline for Submission
Wednesday, June 10, 2026
5 p.m. Mountain Daylight Time (UTC-6h)
Who Should Apply
The Fuel Innovation Fund’s Future Fuels Challenge will be open to a broad range of applicants, including regulated fuel suppliers, industry innovators, and technology developers, advancing projects in Canada that deliver measurable greenhouse gas (GHG) reductions in alignment with Canada’s Clean Fuel Regulations.
Applicants should demonstrate strong technical readiness, a clear commercialization pathway, and the ability to achieve verifiable GHG reductions within five years.
Click the links below for more details:
Eligible Technologies
The program is not technology or process-prescriptive. Applicants may propose a wide range of solutions, provided they align with program objectives and demonstrate meaningful emissions reductions.
Under the Challenge, funding is open to a wide range of technologies, including but not limited to:
- Energy efficiency, optimization, electrification, fuel switching, and new processes at refineries and fuel production facilities
- On-site 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
Project Development Stage
Proposals will be invited for projects that will advance technology to the stages of field pilot, demonstration, or first-of-kind commercial implementation by project completion (e.g., TRL 7-9+ by project completion), as described below:
Field Test/Pilot
At this stage, the solution is ready to be field tested in an operational environment. Projects in this category include the scale-up of prototypes to a representative pilot scale and subsequent in-field testing of pilot units.
Demonstration
At this stage of development, technology or innovation is approaching the final commercial product, and representative systems have been built. Projects in this category include demonstration of near- or full-commercial-scale systems in an operational environment.
First-of-Kind Implementation
At this stage, the technology is ready for first-of-kind commercial deployment. Projects in this category will involve design, construction, and operation of the technology in its final commercial form and at commercial scale, with the intent to operate the process or technology for its full commercial life.
Funding and Project Requirements
Funding is awarded through a competitive process and supports projects with strong technical, economic, and environmental performance.
Key parameters include:
- Funding is provided on a cost-shared basis, with a minimum 1:1 match from applicants or partners
- The Fund will support up to 50% of eligible project costs
- Projects must be implemented in Canada and demonstrate clear benefits to the Canadian transportation fuel sector
- Projects must be sufficiently advanced to begin within defined timelines and proceed to deployment
- Projects must include robust measurement, monitoring, and reporting of emissions reductions
Funding is disbursed based on milestone completion, following execution of a contribution agreement.
Approval Process
The Future Fuels Challenge will follow a competitive, multi-stage process aligned with ERA’s established approach, including:
- Expression of Interest submission: Applicants submit a preliminary proposal using ERA’s online portal.
- Eligibility screening: Initial compliance check against program requirements.
- EOI Evaluation process: Independent review of technology strength, business case, GHG impact, and readiness to identify projects to advance to the Full Project Proposal stage.
- Full Project Proposal: Short-listed applicants submit a Full Project Proposal for additional due diligence.
- Presentation: Short-listed applicants present their proposals to the Fuel Innovation Fund’s evaluation committee.
- Final decision: The Fuel Innovation Fund’s Board of Directors’ Governing Committee approves funding recommendations.
Successful applicants will enter into a Contribution Agreement outlining milestones, deliverables, and reporting obligations.
Timeline
The Future Fuels Challenge is an annual call. Key dates for the upcoming cycle:
| Call launch | April 22, 2026 |
| Informational Webinar | May 4, 2026, 10-11 a.m. MDT |
| EOI deadline | June 10, 2026, 5 p.m MDT |
| Shortlist notification | Mid-July 2026 |
| FPP submission | August 2026 |
| Presentations | September/October 2026 |
| Funding decisions | December 2026 |
Evaluation Criteria
Projects are evaluated based on:
- Strength and readiness of the technology or process
- Business case and market potential
- Project readiness and implementation plan
- Greenhouse gas emissions reductions and carbon intensity improvements
- Economic, environmental, and broader benefits
Additional Requirements
Successful projects must:
- Begin work within defined timelines following funding approval
- Deliver emissions reductions within program timelines
- Provide ongoing reporting on performance, outcomes, and impacts
- Participate in knowledge sharing to support broader adoption of successful solutions
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Deadline for Submission
Wednesday, June 10, 2026
5 p.m. Mountain Daylight Time (UTC-6h)
Contact
Applicants are encouraged to connect with the Fuel Innovation Fund team to discuss project alignment and eligibility before applying.
For inquiries: info@fuelinnovationfund.ca