How much funding can be received?

Non-repayable contributions up to $5 million for demonstration projects that address barriers to the uptake of zero-emission on-road vehicles or improve the overall transportation system efficiency.

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This grant is specifically open to legal entities incorporated or registered in Canada, ensuring alignment with national decarbonization goals. Indigenous communities within Canada are also considered eligible geographical areas for application.

Legal entities incorporated or registered in Canada.
Indigenous communities and groups within Canada.

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$5,000,000

Development of hydrogen fuel cell buses to improve urban transportation efficiency

$3,800,000

Electrification of municipal vehicle fleet to promote sustainability in city operations

$4,000,000

Electric truck fleet demonstration to promote zero-emission transportation in logistics

$3,000,000

Conversion of traditional taxis to electric vehicles for a green urban mobility solution

$4,000,000

Smart traffic management system installation to reduce urban emissions through improved traffic flow

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Eligibility for this grant is determined by specific requirements related to the applicant's profile and proposed activities.

The applicant must be a legal entity incorporated or registered in Canada, which includes for-profit and not-for-profit organizations such as electricity and gas utilities, companies, industry associations, research associations, and standards organizations.
Community groups and Canadian academic institutions are eligible.
Provincial, territorial, regional, and municipal governments and their departments and agencies are eligible, where applicable.
Indigenous applicants, which include Indigenous communities, for-profit and not-for-profit businesses and organizations demonstrating ownership and controlling interests by Indigenous groups, First Nations (bands or councils under the Indian Act), Tribal councils, and Inuit organizations, are eligible.
The proponent, or the entity that signs a contribution agreement with NRCan, must be the majority owner of any assets purchased partially or fully through funding by NRCan.

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The Energy Innovation Program On-road Transportation Decarbonization Call for Proposals is open to a diverse range of applicants, fostering inclusivity and innovation across different sectors in Canada. Eligible applicants include:- Legal entities incorporated or registered in Canada, such as for-profit and not-for-profit organizations, electricity and gas utilities, companies, industry associations, research associations, and standards organizations.- Community groups and Canadian academic institutions.- Provincial, territorial, regional, and municipal governments and their departments and agencies, where applicable.- Indigenous applicants, including Indigenous communities, for-profit and not-for-profit businesses and organizations with ownership and controlling interests by Indigenous groups, First Nations (bands or councils under the Indian Act), tribal councils, and Inuit organizations.- The term "Indigenous" includes Inuit, Métis, First Nations, Status Indian and non-Status Indian individuals or any combination thereof.It is important that the proponent entity, which will sign a contribution agreement with Natural Resources Canada, be the majority owner of any assets purchased through the funding provided.

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This grant program, part of the Energy Innovation Program, excludes certain projects and activities primarily focused on purchasing commercially available vehicles or unsupported infrastructure. The exclusions ensure alignment with strategic innovation directions that don't overlap with existing commercially available solutions.

Companies or projects primarily focused on purchasing commercially available zero-emission vehicles (ZEVs) or the associated infrastructure.
Projects related to off-road vehicles such as those used in mining, forestry, agriculture, or construction.
Organizations focusing on other transportation modes like air, rail, or marine, including their supporting infrastructure.
Businesses dealing with battery supply chain components not involved in active R&D or demonstration.
Entities focused on grid-side solutions like distributed energy resources management systems (DERMS) or virtual power plant models without specific vehicle or charger functionality focus.

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The Energy Innovation Program aims to support projects that contribute to decarbonizing the transportation sector by addressing technical and market innovation barriers specific to Canada. Eligible projects under this grant focus on the areas of low- and zero-emission vehicles and the infrastructure supporting these technologies.

Development, assessment, testing, and integration of novel and innovative equipment, vehicle components, software, and methodologies for low- and zero-emission medium- and heavy-duty vehicles.
Proof of concept of technologies with significant technical risk through field trials, bench-scale testing, pilots, and prototypes.
Pre-demonstration field trials to identify further R&D needs before advancing to pre-commercialization demonstration.
Installation and operation of pre-commercial technologies in intended operational environments for demonstration projects.
Modification of existing systems to accommodate innovative technologies or processes for zero-emission vehicles.
Implementation of charging or refueling solutions for zero-emission fleets and MHDVs, considering placement, power requirements, and grid impact.
Development or demonstration of infrastructure solutions like intelligent transportation systems and multi-modal charging hubs to improve transportation system efficiency.

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The program supports a range of expenses necessary for the execution of the project.

Salaries and benefits for employees directly involved in the project.
Professional, scientific, technical, and contracting services.
Reasonable travel costs, including meals and accommodation, based on National Joint Council Rates.
Capital expenditures for the purchase, installation, testing, and commissioning of qualifying equipment and materials.
Other expenses such as laboratory and field supplies, printing services, data collection services, facility costs for seminars, licence fees and permits, capacity building and training, and field testing services.
For Indigenous proponents, costs related to Indigenous ceremonies (excluding hospitality) and honoraria for Elders.
Overhead expenses directly related to the project, negotiated up to 15% of eligible expenditures.

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The evaluation and selection of projects for this grant are guided by certain factors, such as alignment with departmental priorities, collaboration, and leveraging non-governmental sources, though specific point scores are not detailed in the provided context.

Projects that support departmental priorities, including regional balance, advancing inclusion, diversity, equity, and accessibility (IDEA), and socio-economic considerations, may be favored.
Additional evaluation points may be awarded for projects that leverage funding from non-government sources, aside from Indigenous applicants who are eligible for full project cost funding.

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Here are the steps to submit an application for the Energy Innovation Program On-road Transportation Decarbonization Call for Proposals:

Step 1: Determine Eligibility
- Review the Applicant's Guide to ensure that your organization and project meet the set eligibility criteria.
Step 2: Expression of Interest (EOI)
- Complete and submit your Expression of Interest (EOI) via the Applicant Portal by the specified deadline.
- Your EOI will be reviewed by a technical expert panel.
- Await notification of your EOI evaluation results.
Step 3: Full Project Proposal (FPP)
- If invited, complete and submit a Full Project Proposal (FPP).
- Your FPP will undergo evaluation by a technical expert panel.
- NRCan will notify applicants of the FPP evaluation results.

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Here are additional relevant details for this grant:

Indigenous applicants may receive up to 100% of total project costs, although the general maximum is 75% for R&D and 50% for demonstration projects.
The program encourages collaboration and leveraging additional funding sources, awarding additional points for non-government funding, except for Indigenous applicants.
Submission of expressions of interest (EOI) was required by July 20, 2023, and full project proposals (FPP) are accepted by invitation only.
Applicants may consent to information sharing for exploring co-funding opportunities with "Trusted Partners."
Quarterly and yearly reporting is required, with ongoing data collection up to five years post-project completion.
Eligible expenditures begin once NRCan informs an applicant of selection for funding, with specific retroactivity period restrictions.

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On-road Transportation Decarbonization — Demonstration Projects

Apply to this program

Driving Innovation in Transportation Decarbonization

The Energy Innovation Program's On-road Transportation Decarbonization Call for Proposals aimed at funding innovative research and development (R&D) and demonstration projects focused on reducing emissions in the Canadian transportation sector. Despite the call being closed, it targeted advancing low- and zero-emission vehicle technologies and supportive infrastructure, specifically in medium- and heavy-duty on-road vehicles.

Detailed Insights into the Grant’s Objectives and Structure

The Energy Innovation Program’s call for proposals concentrated on paving the path for groundbreaking advancements in transportation de-emission efforts by strategically funding R&D and demonstration projects aimed at overcoming technological and market barriers. The program was specifically crafted to propel Canada towards a more sustainable transport system by supporting the development and demonstration of low- and zero-emission on-road medium- and heavy-duty vehicles (MHDVs) and the accompanying infrastructure essential for their deployment and efficiency.

The first core focus area was the advancement of low- and zero-emission MHDVs, encouraging projects that would reduce the cost and improve the performance of components such as electric powertrains and hydrogen fuel cell technologies. It also sought to enhance the overall energy efficiency of these vehicles, potentially through innovative methods such as lightweighting using advanced materials or optimizing internal combustion engines with hybrid technologies. These initiatives were crucial not only in addressing immediate objectives of emissions reduction but also in setting long-term resilience and fostering technological advancements in the intuitive vehicular landscape of Canada.

Infrastructure development supporting zero-emission vehicles (ZEVs) formed the second focus area of the grant. Projects under this focus aimed at widening the adoption of ZEVs by overcoming infrastructural barriers and enhancing energy efficiencies across transportation systems. By supporting infrastructure improvements, such as charging solutions and intelligent transportation systems specifically tailored for different communities, including rural, remote, and northern regions, the grant emphasized enhancing accessibility and ensuring the robustness of overall transportation networks. The projects were expected to create infrastructure capable of supporting evolving transportation needs and enable seamless integration across different transportation modes.

Eligibility was broadly defined, encompassing a wide range of applicants, from for-profit and non-profit organizations, community groups, and government entities, to Indigenous communities and businesses. The criteria were inclusively structured to ensure the participation of diverse groups, thereby promoting a more extensive impact of the funded projects on the national scale.

Funding support differed based on project type, with R&D projects eligible for funding support up to 75% of total costs and demonstration projects up to 50%, with some flexibility offered to Indigenous applicants to cover up to 100% of their costs. Such financial structures were designed to encourage collaboration and leveraging of other sources of funding, thus enhancing the project scope and potential impact.

While the application process was divided into two phases—Expression of Interest and Full Project Proposal—the program carried a thorough vetting process to ensure selected projects aligned perfectly with the strategic objectives and priorities defined by the Energy Innovation Program. The due diligence assessment ensured that funded projects were both viable and strategically significant, fortified further by robust reporting, regulatory, and compliance requirements to ensure transparency and measure the long-term impact of the funded initiatives.

Although applications are currently closed, the program set a significant precedent and framework for forthcoming strategic initiatives aimed at decarbonizing the transportation sector, potentially driving further policy developments to tackle climate change and propel sustainable technologies within Canada.