
Closed
METHANE REDUCTION DEMONSTRATION PROGRAM
Funding for methane reduction technology demonstrations
Last Update: March 4, 2026
Funding available
$ 750,000
Timeline
- Closing date : February 24, 2026
Location
Alberta, Canada
Overview
The Methane Reduction Demonstration Program provides up to $750,000 CAD per project to help startups and SMEs demonstrate near-commercial technologies that detect, quantify, or reduce methane emissions. It supports pilot demonstrations and field validation within oil and natural gas operations, including upstream, midstream, and downstream facilities.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase performance through digital transformation
- Develop strategic partnerships
- Develop a new product or service
Eligible Funding
- Maximum amount : 750,000 $
- Up to 75% of project cost
Timeline
- Closing date : February 24, 2026
Eligible candidates
Eligible Industries
- Mining, quarrying, and oil and gas extraction
- Utilities
Location
- Alberta
Legal structures
- For-profit business
Annual revenue
- $ 25,000,000 maximum revenue
Organisation size
- 500 employees maximum
Audience
- Startups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Demonstration of methane reduction technologies within oil and natural gas operations.
- Demonstration of methane measurement and quantification technologies.
- Pilot demonstrations and field validation of near-commercial solutions.
Documents Needed
- Intake Guidelines and Challenge Statements.
- FAQ document.
- Eligible Expenses and Cost Instructions.
Eligibility
Who is eligible?
- Small and medium-sized enterprises (SMEs).
- Technology development startups.
- Canadian and international companies developing methane technologies.
Who is not eligible
- Organizations or project subcontractors based in Russia, Iran, or North Korea.
Eligible expenses
- Direct project labour costs: base salaries for employees working on the project, plus actual benefits for permanent full-time employees (up to 20% of base salary), and contractor fees (with documented rates and time worked).
- Depreciation of fixed assets used exclusively for the project during the project period (assets must be itemized in the Investment Proposal; any unidentified asset requires prior approval).
- Land leasing costs, where directly associated with the project and justified.
- Consumables used during the project (e.g., industrial gases, construction supplies, laboratory supplies), with documentation.
- Project materials and supplies needed to carry out the work (e.g., raw materials, tools, software), as budgeted/approved.
- Travel and accommodation for approved project business, including economy airfare; vehicle travel (allowances for private/company vehicles per Canada rates, compact/mid-size rental vehicles where lower cost, receipted parking, tolls); taxis when other options are unavailable/unsuitable; reasonable accommodation and meal per diems consistent with Canada rates.
- Project-related administrative/overhead costs directly related to the project (e.g., administrative salaries for project activities, office supplies, project-related IT charges, pro-rated insurance, pro-rated utilities), itemized and documented.
- Conference travel and attendance costs where the recipient is a presenter and the presentation is directly related to the project (up to $2,500; up to $5,000 for international conferences), subject to approval and documentation.
- Non-recoverable taxes paid on eligible project expenses.
- Third-party greenhouse gas (GHG) reduction verification costs (by a third party pre-approved by NGIF Accelerator).
Ineligible Costs and Activities
- Costs to prepare or develop the Expression of Interest (EOI) or the Investment Proposal (e.g., staff or consultant time).
- Sales commissions, bonuses, or other pay-for-performance compensation included in salaries.
- Land purchase costs.
- Entertainment expenses (e.g., movies, liquor).
- Intellectual property protection costs (e.g., patenting, licensing, copyrighting).
Eligible geographic areas
- Canada.
- Alberta.
- International applicants are eligible.
Processing and Agreement
- Applications are reviewed through a stage-gated assessment process.
- Eligible projects are evaluated by industry and technical experts.
- Funding decisions are made by an independent committee for TIER matching funding.
- Approved applicants must sign a Contribution Agreement before funds are released.
Additional information
- The program is designed as a fixed-intake model with three competitive intakes (cohorts) planned between November 2025 and December 2027.
- Each cohort cycle is anticipated to span approximately six to eight months from intake to project selection, followed by a contracting phase where project scopes may be refined based on due diligence outcomes.
- Successful projects are expected to proceed into an eighteen-month delivery period once contracts are executed.
- Only expenses incurred after the funding approval letter are eligible for payment using the approved Industry Grants program funds (even if a project starts earlier).
Contacts
Frequently Asked Questions about the METHANE REDUCTION DEMONSTRATION PROGRAM Program
Here are answers to the most common questions about the METHANE REDUCTION DEMONSTRATION PROGRAM. 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 METHANE REDUCTION DEMONSTRATION PROGRAM?
The Methane Reduction Demonstration Program provides up to $750,000 CAD per project to help startups and SMEs demonstrate near-commercial technologies that detect, quantify, or reduce methane emissions. It supports pilot demonstrations and field validation within oil and natural gas operations, including upstream, midstream, and downstream facilities.
How much funding can be received?
METHANE REDUCTION DEMONSTRATION PROGRAM Funds up to 75% of admissible expenses, capped at $750,000 per project.
Who is eligible for the METHANE REDUCTION DEMONSTRATION PROGRAM program?
To be eligible for the METHANE REDUCTION DEMONSTRATION PROGRAM program, you must:
Startups and SMEs developing methane technologies.
Near-commercial projects at TRL 7-9.
International applicants must show deployment in Canada.
What expenses are eligible under METHANE REDUCTION DEMONSTRATION PROGRAM?
Demonstration of methane reduction technologies within oil and natural gas operations.
Demonstration of methane measurement and quantification technologies.
Pilot demonstrations and field validation of near-commercial solutions.
Who can I contact for more information about the METHANE REDUCTION DEMONSTRATION PROGRAM?
You can contact Natural Gas Innovation Fund (NGIF) by email at mrdp@ngif.ca.
Where is the METHANE REDUCTION DEMONSTRATION PROGRAM available?
The METHANE REDUCTION DEMONSTRATION PROGRAM program is available the province of Alberta.
Is the METHANE REDUCTION DEMONSTRATION PROGRAM a grant, loan, or tax credit?
METHANE REDUCTION DEMONSTRATION PROGRAM is a Partnering and Collaboration