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On-road Transportation Decarbonization — Demonstration Projects - Canada
Closed
Source verified August 15, 2026

On-road Transportation Decarbonization — Demonstration Projects

Support for on-road transport decarbonization projects
Offered by
Natural Resources Canada (NRCan)
Official source: natural-resources.canada.ca

Receipt of requests is now closed

Get notified about updates to this grant.

Latest source update
Last Update: August 15, 2026
Latest change: Changed: scope and target audience.
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Grant changed: scope and target audience
We detected changes to scope and target audience.
Funding available
$ 500,000 - $ 5,000,000
Deadline
Closed
Location
Canada
Who can apply

For-profit and not-for-profit organizations.

See full eligibility

Overview

This program supports R&D and demonstration projects that help decarbonize on-road transportation in Canada. Funding is available up to $5 million for demonstration projects and up to $1.5 million for R&D projects, for activities such as technology development, testing, installation, and infrastructure demonstrations.
Receipt of requests is now closed
Get notified about updates to this grant.

At a glance

Funding available

Financing goals
  • Implement environmental initiatives
  • Develop a new product or service
  • Conduct research and development activities
Eligible Funding
  • Maximum amount : 5,000,000 $
  • Minimum amount : 500,000 $
  • Up to 75% of project cost
Funds Providers

Eligible candidates

Eligible Industries
  • All industries
Location
  • Canada
Legal structures
  • Non-profit
  • Public or Parapublic institution
  • For-profit business
Annual revenue
  • All revenue ranges
Organisation size
  • All organization sizes
Audience
  • Indigenous Peoples
  • Canadians
Non-profit candidates
Sector of operation
  • Research
  • Environment
  • Economic, Social and Community Development
  • Business Associations
  • Diversity and Inclusion
Target groups
  • Indigenous peoples
  • Rural / Remote communities
  • Business owners / entrepreneurs
  • Nonprofits / charities
  • Academia / students
Revenue structures
  • All structures
Scope
  • Municipal
  • Regional
  • Provincial
  • National

Next Steps

1
Determine your project
2
Validate your eligibility

Activities funded

  • Development, assessment, testing and integration of novel and innovative equipment, vehicle components, software, and methodologies, including proof of concept technologies, field trials, bench-scale testing, pilots and prototypes, and analytical tools and modelling software
  • Pre-demonstration field trials
  • Installation of a pre-commercial technology; modification of existing processes, equipment, or systems; and installation of equipment and/or infrastructure to support a demonstration
  • Operation, performance testing, and analysis of pre-commercial equipment in its intended environment to assess performance of an innovation
  • Front-end engineering designs only if they are leading to a demonstration under the same proposed project

Official resources

Program guide

Energy Innovation Program - On-road Transportation Decarbonization Call for Proposals

Energy Innovation Program On-road Transportation Decarbonization Call for Proposals Applicants’ Guide

Eligibility

Who is eligible?

  • For-profit and not-for-profit organizations.
  • Community groups and Canadian academic institutions.
  • Provincial, territorial, regional, and municipal governments.
  • Indigenous communities and Indigenous-owned or controlled businesses and organizations.

Who is not eligible

  • Projects limited to commercial vehicle or infrastructure purchases.
  • Off-road or non-road transport projects, including air, rail, and marine.
  • Projects focused on battery manufacturing, inside-the-cell components, energy storage, or asset-agnostic grid-side solutions.
  • Primary training, assessment, or codes-and-standards projects.

Eligible expenses

  • Employee salaries and benefits for project work.
  • Professional, scientific, technical and contracting services.
  • Travel, equipment, materials, supplies, data work, printing, translation, licences, permits, and field testing.
  • Direct project overhead up to 15% of eligible expenditures, plus Indigenous ceremony costs and Elder honoraria where applicable.

Ineligible Costs and Activities

  • Land purchases.
  • Vehicle purchases and retrofits.
  • Hydrogen production and storage technologies.
  • Grid-side infrastructure investment.
  • Projects focused only on commercial vehicle or infrastructure purchases, off-road or other transport modes, battery manufacturing or inside-the-cell components, energy storage, asset-agnostic grid solutions, training, assessments, or codes and standards work.

Eligible geographic areas

  • Canada

Selection criteria

  • Technical merit and fit with program objectives.
  • Collaboration and leverage of additional funding, especially from non-government sources.
  • Support for departmental priorities such as regional balance, IDEA, and socio-economic considerations.

How to apply

  • Step 1: Review the call guide
    • Read the Applicant Guide.
    • Confirm the project fits the program scope and requirements.
  • Step 2: Submit the expression of interest
    • Complete the EOI.
    • Submit it through the Applicant Portal before the deadline.
  • Step 3: Submit the invited full project proposal
    • Wait for EOI results and invitation.
    • Complete the full project proposal if invited.
    • Submit it through the Applicant Portal by the stated deadline.
  • Step 4: Complete review and agreement steps
    • Await NRCan notification of results.
    • If selected, provide any requested information for due diligence.
    • Work with NRCan to draft and sign the contribution agreement.

Processing and Agreement

  • Expression of interest reviewed by a technical expert panel.
  • Successful applicants are invited to submit a full project proposal.
  • Full proposals are reviewed by a technical expert panel and results are communicated by NRCan.
  • Selected projects undergo due diligence covering finances, technical risk, team strengths, legal, and regulatory matters.
  • Successful applicants work with NRCan to draft, sign, and execute a contribution agreement.

Additional information

  • Status: closed to applications.
  • NRCan may request supplementary information during review.
  • Applicants may consent to proposal sharing with other funding organizations and Trusted Partners.

Contacts

energyinnovation-innovationenergetique@nrcan-rncan.gc.ca

Other components of this program

Explore related funding streams and grants that belong to the same program.

Frequently Asked Questions about the On-road Transportation Decarbonization — Demonstration Projects Program

What is the On-road Transportation Decarbonization — Demonstration Projects?

This program supports R&D and demonstration projects that help decarbonize on-road transportation in Canada. Funding is available up to $5 million for demonstration projects and up to $1.5 million for R&D projects, for activities such as technology development, testing, installation, and infrastructure demonstrations.

How much funding can be received?

On-road Transportation Decarbonization — Demonstration Projects Funds up to 75% of admissible expenses, capped at $5,000,000 per project.

Who is eligible for the On-road Transportation Decarbonization — Demonstration Projects program?

To be eligible for the On-road Transportation Decarbonization — Demonstration Projects program, you must: Canadian legal entity or Indigenous applicant. R&D or demonstration project. Meets TRL requirements.

What expenses are eligible under On-road Transportation Decarbonization — Demonstration Projects?

Development, assessment, testing and integration of novel and innovative equipment, vehicle components, software, and methodologies, including proof of concept technologies, field trials, bench-scale testing, pilots and prototypes, and analytical tools and modelling software Pre-demonstration field trials Installation of a pre-commercial technology; modification of existing processes, equipment, or systems; and installation of equipment and/or infrastructure to support a demonstration Operation, performance testing, and analysis of pre-commercial equipment in its intended environment to assess performance of an innovation Front-end engineering designs only if they are leading to a demonstration under the same proposed project

Who can I contact for more information about the On-road Transportation Decarbonization — Demonstration Projects?

You can contact Natural Resources Canada (NRCan) by email at energyinnovation-innovationenergetique@nrcan-rncan.gc.ca.

Where is the On-road Transportation Decarbonization — Demonstration Projects available?

The On-road Transportation Decarbonization — Demonstration Projects program is available across Canada.

Is the On-road Transportation Decarbonization — Demonstration Projects a grant, loan, or tax credit?

On-road Transportation Decarbonization — Demonstration Projects is a Grant and Funding