On-road Transportation Decarbonization — R&D Projects
Highlights
This program is tailored for your business to help you innovate and reduce emissions in the transportation sector. By applying, you can access non-repayable contributions ranging from $500,000 to $5,000,000. This funding can cover up to 75% of your project costs for R&D projects and 50% for demonstration projects. Indigenous applicants can receive up to 100% of project costs.
Why Apply?
- Significant Financial Support: Up to $5,000,000 in non-repayable contributions.
- Flexibility in Use: Funds can be used for developing, testing, and demonstrating innovative technologies.
- Long-term Benefits: Enhance your business's competitiveness and contribute to a sustainable future.
Ease of Qualification
- Clear Eligibility: If your project focuses on low- and zero-emission vehicles or supporting infrastructure, you are likely eligible.
- Simple Application Process: Start with an Expression of Interest, followed by a Full Project Proposal if invited.
Applying for this program can significantly boost your business's innovation capacity and market position while supporting Canada's environmental goals.
Financing Details
Type of Financing:
- Non-repayable contributions are offered for research and development (R&D) projects focused on decarbonizing the transportation sector in Canada.
Repayment Terms and Interest Rates:
- The financing is non-repayable, meaning it does not need to be paid back.
- The maximum amount that can be requested is up to $1.5 million for eligible R&D projects.
Eligible Expenses:
- Eligible expenses include costs directly related to the implementation and conduct of the project, such as salaries, benefits, professional services, travel costs, capital expenditures, and other project-related expenses.
Ineligible Expenses:
- Costs ineligible for reimbursement include federal and provincial taxes, in-kind costs, and certain project costs like vehicle purchases, hydrogen production technologies, hydrogen storage technologies, and grid-side infrastructure investment.
Fees:
- There are no fees associated with the program as it offers non-repayable contributions for eligible R&D projects in the transportation sector.
Qualifications
- Must be a legal entity incorporated or registered in Canada.
- Eligible entities include:
- For-profit and not-for-profit organizations (e.g., electricity and gas utilities, companies, industry associations, research associations, standards organizations)
- Community groups
- Canadian academic institutions
- Provincial, territorial, regional, and municipal governments and their departments and agencies
- Indigenous applicants (Indigenous communities, for-profit and not-for-profit businesses and organizations with Indigenous ownership and controlling interests, First Nations, tribal councils, Inuit organizations)
Must be the majority owner of any assets purchased through funding provided by NRCan.
Disqualifications:
- Projects that consist solely of purchasing commercially available zero-emission vehicles (ZEVs) or the supporting infrastructure.
- Projects focusing on off-road vehicles (mining, forestry, agriculture, construction) or their supporting infrastructure.
- Projects focusing on other modes of transportation (air, rail, marine) or their supporting infrastructure.
- Projects focusing on battery supply chain, manufacturing, or “inside-the-cell” components.
- Projects focusing on energy storage.
- Projects focusing on grid-side solutions that are asset-agnostic (e.g., distributed energy resources management systems, virtual power plant models, electricity rate trials).
- Projects using hydrogen produced from unabated fossil fuels.
Description
This program offers non-repayable contributions up to $1.5 million for research and development projects. It aims to help decarbonize the transportation sector by addressing technical and market innovation barriers in Canada.
Funding can be used for:
- Developing and testing new equipment and vehicle components
- Creating and integrating innovative software and methodologies
- Conducting pre-demonstration field trials
For demonstration projects, you can receive up to $5 million. This money can cover:
- Installing pre-commercial technologies
- Modifying existing systems to accommodate new innovations
- Setting up infrastructure to support demonstrations
Key benefits include:
- Non-repayable contributions: You don’t have to pay back the funds.
- Significant funding amounts: Up to $1.5 million for R&D and $5 million for demonstration projects.
- Long project duration: Funding is available for projects up to five years.
This program is a valuable opportunity for your business to innovate and contribute to a greener transportation sector.
Program Steps
Complete and Submit an Expression of Interest (EOI):
- Access the Applicant Portal.
- Fill out the EOI form with all required information.
- Submit the EOI by the specified deadline.
Prepare Documentation for EOI:
- Business registration or incorporation documents.
- Project description and objectives.
- Budget estimates and funding sources.
- Technical details and readiness levels of the proposed technology.
EOI Evaluation:
- Wait for NRCan to review your EOI.
- If successful, you will be invited to submit a Full Project Proposal (FPP).
Complete and Submit a Full Project Proposal (FPP):
- Access the Applicant Portal again.
- Fill out the FPP form with detailed project information.
- Submit the FPP by the specified deadline.
Prepare Documentation for FPP:
- Detailed project plan and timeline.
- Comprehensive budget and financial plan.
- Technical specifications and readiness levels.
- Evidence of partnerships or collaborations.
- Risk management and mitigation strategies.
FPP Evaluation:
- Wait for NRCan to review your FPP.
- If successful, you will be notified of the evaluation results.
Due Diligence Assessment:
- Provide additional information if requested by NRCan.
- Undergo an evaluation of project finances, technical risk, and team strengths.
Sign Contribution Agreement:
- Work with NRCan to draft and finalize the contribution agreement.
- Sign the agreement to formalize the funding commitment.
Project Implementation:
- Begin project activities as outlined in the proposal.
- Ensure compliance with all regulatory, reporting, and other requirements.
Regular Reporting:
- Submit quarterly and yearly reports to NRCan.
- Report on project progress, financials, and outcomes.
Project Completion:
- Submit a final report upon project completion.
- Continue data collection and assessment for five years post-completion.