
On-road Transportation Decarbonization — Demonstration Projects
grant_single|update June 4, 2025
Canada
Funding for demonstration projects in transportation
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grant_single|eligibleFinancing
- grant_single|fromMinToMax
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDate May 25, 2023
- grant_single|closingDate July 20, 2023
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Utilities
- Manufacturing
- Transportation and warehousing
- Professional, scientific and technical services
- Public administration
grant_single|grantors
- Natural Resources Canada (NRCan)
- Government of Canada
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grant_card_status|closed
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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.
grant_single_labels_website|terms_and_conditions
- R&D projects: Funding from $500,000 to $1,500,000, up to 75% of total project costs (up to 100% for Indigenous applicants), over a period of up to 5 years.
- Demonstration projects: Funding from $1,000,000 to $5,000,000, up to 50% of total project costs (up to 100% for Indigenous applicants), over a period of up to 5 years.
- Eligible project expenditures may begin after official written notification of selection; retroactive claims are subject to restrictions.
- Government funding stacking permissible up to 100% of eligible expenditures.
grant_single_labels_website|projects
This grant supports projects that aim to decarbonize the transportation sector by fostering innovation in low- and zero-emission vehicles and their supporting infrastructure. Eligible projects are targeted at overcoming the technological and market barriers within Canada's transportation industry.
- Development and testing of novel and innovative equipment, vehicle components, software, and methodologies including prototypes and field trials.
- Installation of pre-commercial technology to operate in its intended environment for demonstration purposes.
- Modification of existing systems to integrate new, innovative technologies or processes.
- Engineering, design, and permitting associated with installing demonstration infrastructure.
- Operation and performance testing of innovations in the transportation environment to evaluate efficacy.
- Reducing cost/performance ratios for electric powertrain components and hydrogen fuel cells.
- Demonstration of novel uses of battery electric and hydrogen fuel cell MHDVs.
- Improving on-road vehicle energy efficiency through innovative design and new materials.
- Innovative charging solutions addressing infrastructure challenges for zero-emission vehicles in specific contexts such as rural or multi-unit residential scenarios.
grant_single|admissibleProjectsExample
$ 4,000,000
Electric truck fleet demonstration to promote zero-emission transportation in logistics
$ 4,000,000
Smart traffic management system installation to reduce urban emissions through improved traffic flow
$ 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
$ 3,000,000
Conversion of traditional taxis to electric vehicles for a green urban mobility solution
grant_single_labels_website|admissibility
- The applicant must be a legal entity incorporated or registered in Canada, such as a for-profit business, not-for-profit organization, community group, academic institution, provincial, territorial, regional, or municipal government or agency, or an Indigenous organization, business, or community.
- The project must fall under research and development (R&D) or demonstration activities focused on decarbonizing on-road transportation within Canada.
- Projects must address technical or market innovation barriers related to low- and zero-emission on-road medium- and heavy-duty vehicles or infrastructure supporting on-road zero-emission vehicles and system efficiency.
- Projects cannot consist solely of the purchase of commercially available vehicles or supporting infrastructure.
- The applicant must be the majority owner of any assets purchased with program funding.
grant_eligibility_criteria|who_can_apply
- For-profit organizations (including companies and utilities) incorporated or registered in Canada
- Not-for-profit organizations (such as industry associations, research associations, and standards organizations)
- Community groups
- Canadian academic institutions
- Provincial, territorial, regional, and municipal governments and their departments and agencies
- Indigenous organizations and businesses
grant_eligibility_criteria|who_cannot_apply
- Companies whose projects consist solely of purchasing commercially available zero-emission vehicles (ZEVs) or associated infrastructure.
- Organizations focused exclusively on off-road vehicles (mining, forestry, agriculture, construction) or their supporting infrastructure.
- Businesses engaged primarily in other modes of transportation (air, rail, marine) or their supporting infrastructure.
- Entities involved in battery supply chain, manufacturing, or inside-the-cell components.
- Companies whose primary activity is energy storage or grid-side solutions that are asset-agnostic.
grant_eligibility_criteria|eligible_expenses
- Salaries and benefits for employees working on the project.
- Professional, scientific, technical, and contracting services.
- Reasonable travel expenses, including meals and accommodation, based on government rates.
- Capital expenditures for the purchase, installation, testing, and commissioning of qualifying equipment, materials, and products (including diagnostic and testing tools and warranties).
- Laboratory and field supplies, and materials.
- Printing and translation services.
- Data collection services, including processing, analysis, and management.
- Facility costs for meetings, seminars, or conference room rentals.
- Licence fees and permits.
- Capacity building and training.
- Field testing services.
- Overhead expenses directly related to the project, up to 15% of eligible expenses.
- For Indigenous proponents: costs associated with Indigenous ceremonies (excluding hospitality) and honoraria for Elders.
grant_eligibility_criteria|zone
- Legal entities incorporated or registered in Canada.
- Provincial, territorial, regional, and municipal governments and their departments and agencies within Canada.
- Indigenous communities and organizations located in Canada.
grant_single_labels_website|criteria
- Collaboration and leveraging: Projects that leverage funding from non-government sources receive additional points in the evaluation.
- Support for departmental priorities: Projects may be selected based on support for regional balance in Canada, advancing inclusion, diversity, equity, and accessibility (IDEA), and socio-economic considerations.
grant_single_labels_website|apply
1
Determine Eligibility
Review the Applicant's Guide to ensure that your organization and project meet the set eligibility criteria.
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.
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.
grant_single_labels_website|otherInfo
- Quarterly and yearly reporting is required for funded projects, with ongoing data collection for five years following project completion.
- Applicants may be asked for permission to share their application with other funding organizations for potential co-funding or referrals.
- Successful projects must complete a due diligence assessment before finalizing a contribution agreement.
- Providing voluntary information on inclusion, diversity, equity, and accessibility (IDEA) may be considered in project selection, though not scored.
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