Updated August 2026 · Verified against Natural Resources Canada guidelines
✨ New Program Reimbursement Est. 2026
Grant Federal Active

Biofuels Production Incentive

Natural Resources Canada
Maximum Funding
16¢/litre (first 170M litres per facility) + 10¢/litre (next...
Continuous intake until December 31, 2027
Visit Official Program →
Difficulty
Moderate
Payment
Reimbursement
Trend
New Program
First-Timers
—
Co-Funding
Varies
Biofuels Production Incentive provides up to 16¢/litre (first 170M litres per facility) + 10¢/litre (next 130M litres); up to 300M litres per facility over 2 years. A $370+ million federal non-repayable incentive program providing tiered per-litre payments to Canadian producers of biodiesel and renewable diesel for fuel produced and sold into the Canadian market in 2026 and 2027. Applications are accepted on an ongoing basis.

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Program Description

A $370+ million federal non-repayable incentive program providing tiered per-litre payments to Canadian producers of biodiesel and renewable diesel for fuel produced and sold into the Canadian market in 2026 and 2027. Designed to stabilize and strengthen the domestic biofuels sector in response to global trade disruptions. Eligible producers receive 16 cents per litre on the first 170 million litres and 10 cents per litre on the next 130 million litres of production per facility.

Eligibility Requirements

  • Legal entity validly incorporated or registered in Canada (for-profit and not-for-profit eligible)
  • Currently a producer of biodiesel and renewable diesel (either fuel qualifies; a renewable-diesel-only producer, Tidewater Renewables' HDRD Complex, has received conditional BPI approval)
  • Eligible to create credits under the federal Clean Fuel Regulations
  • Uses North American feedstocks (not exclusively imported non-North American feedstocks)
  • Sells eligible fuel produced to the Canadian market
Provinces
Industries
Business Stage
Established

Quick Assessment

Difficulty
Moderate
Competition
Low
First-Timer
Not rated

Funding Details

Amount
16¢/litre (first 170M litres per facility) + 10¢/litre (next 130M litres); up to 300M litres per facility over 2 years
Type
Grant
Level
Federal
Deadline
Continuous intake until December 31, 2027

Program Scorecard

Competition, effort, and approval at a glance

Competition
Low
Deadline
Dec 31, 2027
Approval
Good
Accessibility
2/5

Difficult — significant preparation needed

Competition
2/5

Below average competition

Difficulty
3/5

Moderate — standard requirements

Approval Rate
Processing Time
Budget Trend
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How to Win

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

The Applicant's Guide and Form are not publicly posted — you must email [email protected] to request them.

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Success Profile

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Evaluation Criteria

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How Natural Resources Canada judges your application

What the reviewer scores, what gets applications rejected, and what to write.

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Sections6
Judged on2 criteria
Can reject you3 rules

Distilled from 6+ source documents, condensed into one brief. Sources as of 2026-09-10.

6 of the sources

What Natural Resources Canada favours

Incentive for biodiesel and renewable diesel production in Canada◦

“The objectives of this program are to provide an incentive to eligible facilities that produce biodiesel and renewable diesel in Canada based on production volumes, use of North American Feedstocks, and domestic offtake.”

1 more, in their words

The formthe outline

Before you apply1 section
  1. 1Request the applicant’s guide and formshort answer
Who can apply1 section
  1. 2Who can applycheckboxes
Eligible fuel and incentive2 sections
  1. 3Eligible fuel: production years, feedstock and markettable
  2. 4Per-litre incentive and volume cap per facilitytable
Application and claims2 sections
  1. 5Applicant’s Form (contents unpublished)short answer
  2. 6Production claims and payments (schedule unpublished)table

Natural Resources Canada states no length limits for these answers.

4 more prompts, in the funder’s words

Judged against3 questions · 2 criteria

  1. 1

    Are you an eligible Canadian producer?

    Show them Show Canadian incorporation, current biodiesel or renewable diesel production, and Clean Fuel Regulations credit eligibility for the entity that submits.◦

  2. 2

    How many eligible litres per facility?

    What to show, and the funder’s 1 criterion behind it in Premium

  3. 3

    Is your feedstock North American and your market Canadian?

    What to show, and the funder’s 1 criterion behind it in Premium

Premium · the rest of this brief

See all 3 rules that can reject you and every criterion you are judged on. Then we draft your application for you.

1 more rule that can reject you · 2 more criteria · 4 more prompts

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Do you pass?4 checks

3 can rule you out; 1 is a preference. Tick the ones you meet.

Your business

  • Canadian producer, CFR credits, Canadian sales

    To be considered for funding under the Incentive, an applicant must be a legal entity validly incorporated or registered in Canada including not-for-profit and for-profit organizations who is currently a producer of biodiesel and renewable diesel eligible to create credits under the Clean Fuel Regulations that uses North American feedstocks and sells the fuel produced to the Canadian market.

The project

  • Fuel produced in 2026 or 2027

    Eligible fuel produced in the 2026 and 2027 calendar years

2 more checks

The money

Incentive rate$0.16/L first 170M L, $0.10/L after

$0.16 per litre for the first 170 million litres produced annually; and $0.10 per litre for the next 130 million litres produced annually.

Volume cap per facility300 million litres per facility

will be available from January 2026 to December 2027 for up to 300 million litres per facility

Non-repayableNon-repayable

Additionally, the incentive provided will be non-repayable.

Costs before approvalEligible 2026 and 2027 calendar-year production

eligible fuel produced in the 2026 and 2027 calendar years

From application to money

  1. Request guide and formEmail for Applicant's Guide and Form
  2. Submit applicationDecember 31, 2027Apply by December 31, 2027
  3. Conditional approvalConditional approval; one on 2026-03-30
  4. Sign contribution agreementSign contribution agreement with NRCan
  5. Claim per quarterQuarterly claims paid in arrears
In the funder’s words · 5
Request guide and form
Email [email protected] to receive the Applicant’s Guide and Form.
Submit application
Applications are accepted on a continuous intake basis until December 31, 2027.
Conditional approval
Approval is conditional; one recipient's came on 2026-03-30.
Sign contribution agreement
The remaining condition for approval is executing a contribution agreement with NRCan; one recipient executed it on 2026-07-07.
Claim per quarter
Funds are expected to be received quarterly in arrears against production claims.

Quoted lines are word for word from the source documents; lines marked ◦ are our reading of them.

What's in this Playbook

Everything you need to win Biofuels Production Incentive

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Application Playbook

Step-by-step process, required documents, and expenses

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Application Steps

1 Email NRCan to request the Applicant's Guide and Form Contact [email protected] to receive the program guide and application form. These documents are not publicly posted and must be requested directly.

Required Documents 5

✓ Applicant's Guide and Form (requested via email at [email protected])
✓ Proof of incorporation or registration as a Canadian legal entity

Eligible Expenses 3

Ineligible Expenses 4

Intake Periods

Deadline Notes

Ineligible Organizations

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Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Compatible Programs

Clean Fuel Regulations credit market
Combined Funding Potential See your total funding potential

Clawback Risk

Medium Risk

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How Biofuels Production Incentive Compares

Side-by-side with similar programs

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Program Amount Difficulty Payment Deadline
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Frequently Asked Questions

Quick answers to the questions founders most often ask about Biofuels Production Incentive

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Can sole proprietors apply?
No. Must be a legally incorporated or registered entity in Canada (for-profit or not-for-profit). Sole proprietors without incorporation are ineligible.
What's the realistic payout for a 10M litre producer?
Approximately $1.6M annually (10M × 16¢). Smaller producers must generate at least 10M litres to justify application effort versus compliance costs.
When must I submit my application?
Applications must be submitted by December 31, 2027, for fuel produced January 1, 2026–December 31, 2027. Continuous intake until that date.
Why do applications fail?
Common failures: not a current producer, using exclusively non-North American feedstocks, or not selling into the Canadian market. Applicants must currently produce biodiesel or renewable diesel and be eligible to create credits under the Clean Fuel Regulations — this does not require an existing credit-trading history.
Do I get paid upfront?
No. Payments are reimbursement-based. You must produce fuel, sell it domestically, and submit documentation before receiving funds.

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