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Capital project: Organic Waste-to-Energy - Canada
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Capital project: Organic Waste-to-Energy

Funding for municipal organic waste-to-energy system construction and commissioning
Last Update: April 10, 2026
Funding available
Up to 80% of project cost
Timeline
  • Open continuously
Location
Canada

Overview

Provides a combined GMF loan and grant of up to 80% of eligible costs, to a maximum of $10 million, to help municipalities and their partners construct, commission, and begin operating an organic waste-to-energy system. Eligible activities include capturing and using biogas from anaerobic digestion or landfill gas, and recovering energy (including heat) from wastewater, composting, or landfill (geothermal) sites to generate renewable energy and reduce GHG emissions.
/100
Opportunity Score
Moderate potential, but conditions must align.

At a glance

Funding available

Financing goals
  • Increase performance through digital transformation
  • Reduce environmental footprint
Eligible Funding
  • Up to 80% of project cost
Timeline
  • Open continuously

Eligible candidates

Eligible Industries
  • Utilities
  • Administrative and support, waste management and remediation services
  • Public administration
Location
  • Canada
Legal structures
  • Non-profit
  • Public or Parapublic institution
Annual revenue
  • All revenue ranges
Organisation size
  • All organization sizes
Audience
  • Indigenous Peoples
  • Rural or Northern Residents
Non-profit candidates
Sector of operation
  • All industries
Target groups
  • All the groups
Revenue structures
  • All structures
Scope
  • All dimensions

Next Steps

1
Determine your project
2
Validate your eligibility

Activities funded

  • Constructing, commissioning and beginning operation of an organic waste-to-energy system that captures biogas from anaerobic digestion of local organic waste.
  • Constructing, commissioning and beginning operation of a landfill gas (LFG) capture and energy recovery system (upgrading or direct use).
  • Constructing, commissioning and beginning operation of an energy recovery system that harnesses heat from wastewater, composting or landfill sites (geothermal).

Documents Needed

  • Completed GMF application form
  • Project workbook
  • Evidence of municipal support (e.g., council resolution)
  • Letters confirming any confirmed sources of funding
  • Completed feasibility study (or equivalent)

Eligibility

Who is eligible?

  • Canadian municipal governments (e.g., towns, cities, regions, districts and local boards)
  • Private sector entities (as municipal partners)
  • Municipally-owned corporations
  • Regional, provincial or territorial organizations delivering municipal services
  • Non-governmental organizations, not-for-profit organizations and research institutes (e.g., universities) (as municipal partners)

Who is not eligible

  • Organizations that are not Canadian municipal governments and are not applying in partnership with a Canadian municipal government.
  • Energy generation projects designed to power multiple buildings through district energy systems (these may be eligible under GMF’s Community Energy Systems offer instead).
  • Projects involving combustion of waste (high oxygen systems).
  • Projects relying on feedstocks that would otherwise be recycled or reused to generate higher-value end products.
  • Agricultural or forestry biomass producers where biomass is grown or harvested specifically for the purpose of producing energy.

Eligible expenses

  • Costs to prepare the GMF application (including completing the Project Workbook) incurred up to 90 days before the full application is received (up to $5,000).
  • Costs for required assessments relevant to the GMF application completed within 90 days before the full application is received (up to $25,000).
  • Project-specific administrative costs incurred after the application is received (e.g., project-required permits/certifications, outside printing/photocopying, project-only document acquisition, document translation, project-related communications).
  • Project-essential advertising and public communication/evaluation costs (e.g., website development, media distribution, public surveys, advertising development fees).
  • Third-party financial audit costs for the capital project, if required by FCM; and third-party environmental audit costs for the triple bottom line results report.
  • Capital costs (e.g., acquiring/developing/constructing/modernizing/leasing systems such as equipment, hardware, software; construction/renovation/modernization materials and installation costs).
  • Equipment and tool rental directly related to the project.
  • Costs for meetings and public gatherings to communicate the project and collect feedback (e.g., facility and audiovisual rentals; accessibility supports such as interpretation, shuttle service, babysitting; food/drinks only when part of a specific cultural protocol; honoraria and costs for local cultural protocols where applicable).
  • Professional and technical consultant/contractor fees.
  • Transportation, shipping and courier costs essential to delivering project materials/services.
  • Necessary travel and accommodation for the applicant and its consultants (within Treasury Board of Canada guidelines), including travel for FCM-led capacity-building activities related to the project (up to $10,000 or 10% of eligible costs, whichever is lower).
  • Non-rebatable portion of applicable taxes.
  • Staff remuneration for time actually worked on project implementation (direct salaries and certain eligible benefits, prorated as applicable).

Ineligible Costs and Activities

  • District energy systems that power multiple buildings (these may be eligible under GMF’s Community Energy Systems offer instead).
  • Waste combustion (high-oxygen systems).
  • Projects relying on feedstocks that would otherwise be recycled or reused to create higher-value end products.
  • Waste collection and processing infrastructure such as collection programs, transfer stations, recycling facilities, and eco-centres.
  • Landfill gas recovery and methane monitoring systems where methane control is required under provincial or proposed federal regulations (methane destruction devices, including energy generation systems, remain eligible for these sites).

Eligible geographic areas

  • Canada (Canadian municipal governments).

Processing and Agreement

  • GMF assigns a project officer to review the submitted full application for accuracy and completeness and may request clarifications or revisions to strengthen the file.
  • The application undergoes external expert peer review (for capital projects), plus an internal analysis to develop a funding recommendation.
  • A final funding decision is made through GMF governance: the GMF Council provides recommendations, and FCM’s Board of Directors oversees/approves funding decisions.
  • Decision timelines: capital projects typically receive a decision in about 4–6 months after full application submission (GMF indicates 3–5 months for business cases and feasibility studies).
  • If approved, GMF reporting is required (e.g., progress/completion reporting and other required reports depending on project type) and disbursements are requested through GMF’s process.

Additional information

  • Applications are accepted year-round until annual funds are allocated; if annual funding is fully allocated, new applications are deferred to the following fiscal year beginning April 1.
  • For capital projects, the average time for a funding decision is four to six months after submission of the full application form.
  • GMF reserves the right to reduce, amend or eliminate funding amounts if projects deviate from the approved scope of work.
  • For approved capital projects, the lead applicant must keep invoices, receipts and backup documents for seven years after the final FCM disbursement.

Contacts

Frequently Asked Questions about the Capital project: Organic Waste-to-Energy Program

Here are answers to the most common questions about the Capital project: Organic Waste-to-Energy. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.

What is the Capital project: Organic Waste-to-Energy?

Provides a combined GMF loan and grant of up to 80% of eligible costs, to a maximum of $10 million, to help municipalities and their partners construct, commission, and begin operating an organic waste-to-energy system. Eligible activities include capturing and using biogas from anaerobic digestion or landfill gas, and recovering energy (including heat) from wastewater, composting, or landfill (geothermal) sites to generate renewable energy and reduce GHG emissions.

How much funding can be received?

Capital project: Organic Waste-to-Energy Funds up to 80% of admissible expenses.

Who is eligible for the Capital project: Organic Waste-to-Energy program?

To be eligible for the Capital project: Organic Waste-to-Energy program, you must: Canadian municipal governments (e.g., towns, cities, regions, districts, local boards). Municipal partners (e.g., private sector, municipally-owned corporations, NGOs, not-for-profits, research institutes/universities). Indigenous community eligible only with a municipal partner or a shared service agreement with a Canadian municipality.

What expenses are eligible under Capital project: Organic Waste-to-Energy?

Constructing, commissioning and beginning operation of an organic waste-to-energy system that captures biogas from anaerobic digestion of local organic waste. Constructing, commissioning and beginning operation of a landfill gas (LFG) capture and energy recovery system (upgrading or direct use). Constructing, commissioning and beginning operation of an energy recovery system that harnesses heat from wastewater, composting or landfill sites (geothermal).

Who can I contact for more information about the Capital project: Organic Waste-to-Energy?

You can contact Green Municipal Fund (GMF) by email at gmfinfo@fcm.ca or by phone at 1-877-417-0550.

Where is the Capital project: Organic Waste-to-Energy available?

The Capital project: Organic Waste-to-Energy program is available across Canada.

Is the Capital project: Organic Waste-to-Energy a grant, loan, or tax credit?

Capital project: Organic Waste-to-Energy is a Grant and Funding