Funding
Future Fuels Challenge
Announcement
Program to launch Spring 2026.
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About
The Future Fuels Challenge is a flagship initiative under the Fuel Innovation Fund, administered by ERA, designed to accelerate the development and deployment of innovative low-emission fuel technologies.
This annual competitive funding call supports projects that deliver measurable greenhouse gas (GHG) reductions, enable commercialization of novel solutions, and strengthen Canada’s clean energy economy. The Challenge focuses on technologies that can significantly reduce the lifecycle carbon intensity of transportation fuels and contribute to Canada’s Clean Fuel Regulations objectives.
Who Should Apply
The Fuel Innovation Fund’s Future Fuels Challenge will be open to a broad range of applicants, including:
- Technology developers and innovators
- Fuel producers and suppliers
- Industrial operators
- Indigenous communities and municipalities
- Post-secondary institutions and research organizations
- Collaborative consortia involving multiple partners
Applicants should demonstrate strong technical readiness, a clear commercialization pathway, and the ability to achieve verifiable GHG reductions within five years.
Eligible Technologies
Under the regulation, funding is open to a wide range of technologies, including but not limited to:
- Energy efficiency & optimization
- Electrification, fuel switching & new processes
- Clean electricity/heat production
- Methane emission reduction
- Carbon Capture Utilization and Storage
- Co-processing
- Production of biofuels, synthetic fuels, or e-fuels
- Electric vehicle charging stations
- Hydrogen fuel stations
Project Development Stage
Proposals will be invited for projects that will advance technology to the stages of field pilot, demonstration, or first-of-kind commercial implementation by project completion (e.g., TRL 7-9+ by project completion), as described below:
Field Test/Pilot
At this stage, the solution is ready to be field tested in an operational environment. Projects in this category include the scale-up of prototypes to a representative pilot scale and subsequent in-field testing of pilot units.
Demonstration
At this stage of development, the technology or innovation is approaching the final commercial product, and representative systems have been built. Projects in this category include demonstration of near- or full-commercial-scale systems in an operational environment.
First-of-Kind Implementation
At this stage, the technology is ready for first-of-kind commercial deployment. Projects in this category will involve design, construction, and operation of the technology in its final commercial form and at commercial scale, with the intent to operate the technology for its full commercial life.
Approval Process
The Future Fuels Challenge will follow a competitive, multi-stage process aligned with ERA’s established approach, including:
- Expression of Interest submission: Applicants submit a preliminary proposal using ERA’s online portal.
- Eligibility screening: Initial compliance check against program requirements.
- Expert evaluation: Independent review based on technology strength, business case, GHG impact, and readiness.
- Full Project Proposal: Selected applicants prepare a detailed Full Project Proposal and are subjected to additional due diligence.
- Presentation: Selected applicants present to the Fuel Innovation Fund’s evaluation committee.
- Final decision: The Fuel Innovation Fund’s Board of Directors approves funding recommendations.
Successful applicants will enter into a Contribution Agreement outlining milestones, deliverables, and reporting obligations.
