Frequently Asked Questions
What is the Fuel Innovation Fund?
The Fuel Innovation Fund is a subsidiary of Emissions Reduction Alberta (ERA) that takes compliance contributions from fuel suppliers and invests them into projects that reduce the carbon intensity of transportation fuels in Canada.
How is the funding structured?
Available funding depends on the volume of compliance payments made to the Fuel Innovation Fund as a registered Emissions Reduction Funding program under the CFR. In 2025, ERA received $188 million in compliance contributions. These dollars must deliver measurable emission reductions by 2030. Future contributions will determine further funding availability and all monies must be allocated to projects that deliver emissions reductions within five years.
Who can apply for funding?
Regulated and non-regulated organizations across Canada can apply for the Future Fuels Challenge including energy producers, refiners, biofuel developers, and technology innovators. This includes, but is not limited to, innovators, technology developers, industrial facility owners and operators, industrial associations, small and medium-sized enterprises (SMEs), research and development organizations, universities, not-for-profit organizations, government research labs, and individuals.
Only entities who have contributed to the Fuel Innovation Fund can apply to the Contributor Reinvestment Program. This funding is not guaranteed, and submissions will be subject to an independent, rigorous, transparent review and assessed against eligibility criteria published in the Fuel Innovation Fund Program Guidelines.
What kinds of projects is the Fuel Innovation Fund looking for?
Under the Clean Fuel Regulations, investments can support a wide range of technologies that reduce the lifecycle carbon intensity of transportation fuels. That could include upstream emissions reductions in petroleum extraction, efficiency improvements or biogenic feedstock co-processing within refineries themselves, or changes to fuel blending and supply. In general, Fuel Innovation Fund programs are not technology prescriptive. Some examples of potential investments include digital optimization, energy efficiency, electrification, co-processing, blending, and production of biofuels and clean hydrogen.
Why is the Fuel Innovation Fund best placed to manage these funds?
ERA has 17 years of experience investing in clean technology. We bring a track record of rigorous, transparent funding with demonstrated outcomes and strong connections with industry and government. The Fuel Innovation Fund is leveraging all of this existing knowledge and expertise through shared resources and systems.
How does the Fuel Innovation Fund find projects to fund through the Future Fuels Challenge?
All funding will be distributed via merit-based funding programs such as the Contributor Reinvestment Program or Future Fuels Challenge. Program guidelines, including the specific scope, criteria, and application requirements for each program are published on the FIF website for active and upcoming programs.
How can I get funding for my project?
To receive funding, a project must meet the criteria set out in an active funding opportunity as outlined in the Expression of Interest document. The criteria are published on the Fund’s website for each annual opportunity.
To assess if your project qualifies, read all guiding documents that supports the funding opportunity. These documents provide information about the due diligence process and review criteria. An Eligible Expenses and Cost Instructions provide further guidance regarding eligible expenses.
What’s the timeline for applications?
The Fuel Innovation Fund will launch Contributor Reinvestment Program in January 2026 as a continuous intake for proposals from regulated contributors. The first open call for proposals for the Future Fuels Challenge will launch in mid 2026, with the first set of projects selected and announced later in the year after adjudication and Board approval.
How soon will projects have to deliver results?
Projects must start within 120 days of approval and be operational within three years, with verified reductions within 5 years.
What happens if the five-year target is not met?
All projects must achieve outcomes in the timelines specified by the Clean Fuels Regulation. Project selection criteria will account for the likelihood of meeting timelines and the risk profile of each opportunity. After funding approval, projects that fail to progress or are at risk of not meeting timelines may be subject to corrective measures including withdrawal or repayment of funding.
How do you ensure accountability?
Funding is milestone-based. If companies are unable to meet pre-approved milestones, they are unable to access funds to move forward and remaining committed dollars go back to the fund for reinvestment. Dollars only flow once progress is proven. Project emission reductions will be measured using a standardized, ISO‑aligned quantification framework that applies consistent data requirements, conservative methods, and independent validation and verification to ensure accuracy and transparent reporting.
Who selects the projects for funding?
A committee of independent experts in science, engineering, project management, business, commercialization, financing, and GHG quantification conduct independent, rigorous, transparent reviews overseen by a Fairness Monitor.
How are projects selected for funding?
The Fuel Innovation Fund will utilize a proven approach used by ERA for 17 years. Submissions will be selected through a competitive review process that incorporates both eligibility-and merit-based criteria to ensure investments align with the targeted outcomes of the fund and represent an appropriate balance of risk vs. outcomes potential.