Closed
Source verified May 28, 2026
On-road Transportation Decarbonization — Demonstration Projects
Support for on-road transport decarbonization projects
Funding available
$ 500,000 - $ 5,000,000
Deadline
July 20, 2023
Opened May 25, 2023
Location
Canada
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.
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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, testing, and integration of innovative vehicle technologies, components, software, and methods.
- Short pre-demonstration field trials for new technologies.
- Installation and operation of pre-commercial technologies, equipment, and supporting infrastructure.
- Projects that improve zero-emission vehicle uptake or transportation system efficiency through charging, refueling, or smart infrastructure solutions.
Official resources
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
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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.
What is the deadline to apply?
The application deadline for this grant program was July 20, 2023.
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, testing, and integration of innovative vehicle technologies, components, software, and methods.
Short pre-demonstration field trials for new technologies.
Installation and operation of pre-commercial technologies, equipment, and supporting infrastructure.
Projects that improve zero-emission vehicle uptake or transportation system efficiency through charging, refueling, or smart infrastructure solutions.
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.