Closed
On-road Transportation Decarbonization — Demonstration Projects
Support for on-road transport decarbonization projects
Last Update: April 9, 2026
Funding available
$ 500,000 - $ 5,000,000
Timeline
- Open Date : May 25, 2023
- Closing date : July 20, 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.
/100
Opportunity Score
Moderate potential, but conditions must align.
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
Timeline
- Open Date : May 25, 2023
- Closing date : July 20, 2023
Eligible candidates
Eligible Industries
- Transportation and warehousing
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.
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
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.
Documents and links
Contacts
Frequently Asked Questions about the On-road Transportation Decarbonization — Demonstration Projects Program
Here are answers to the most common questions about the On-road Transportation Decarbonization — Demonstration Projects. 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 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.