Biofuels Production Incentive
Eligibility & Details
What this program funds and who can apply
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
- 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
Quick Assessment
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
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How to Win
Insider tips, common pitfalls, and what successful applicants look like
Insider TipThe Applicant's Guide and Form are not publicly posted — you must email bpi-ipb@nrcan-rncan. gc.ca to request them. This program specifically targets existing biodiesel and renewable diesel producers who are already generating Clean Fuel Regulation credits; new entrants without existing CFR credit history are likely ineligible. The incentive is designed to respond to US trade disruptions affecting Canadian biofuel competitiveness — act quickly as the 2-year window (2026–2027) is fixed.
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Success Profile
Established Canadian biodiesel or renewable diesel producer with an active Clean Fuel Regulations credit account. Uses North American feedstocks (canola, tallow, used cooking oil, etc.). Sells fuel domestically. Facility producing at least 10 million litres annually to make the application worthwhile relative to compliance effort.
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Evaluation Criteria
Non-competitive — incentive is formulaic. Eligibility is determined by: current producer status, CFR credit eligibility, North American feedstock use, and Canadian market sales. Tiered rate applies: 16¢/L on first 170M litres per facility, 10¢/L on next 130M litres, per 2-year program.
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Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 5
Eligible Expenses 3
- Biodiesel production volumes for 2026–2027 calendar years (incentive is per-litre, not expense-based)
- Renewable diesel production volumes for 2026–2027 calendar years
- Production using North American feedstocks (canola, soy, tallow, used cooking oil, etc.)
Ineligible Expenses 4
- Fuel produced before January 1, 2026 or after December 31, 2027
- Fuel not sold into the Canadian market
- Production from exclusively non-North American feedstocks
- Fuel not eligible to generate Clean Fuel Regulation credits
Intake Periods
Continuous intake from program launch (January 5, 2026) through December 31, 2027. Covers fuel produced during 2026 and 2027 calendar years.
Deadline Notes
Program accepts applications on a continuous intake basis. Incentive covers fuel produced from January 1, 2026 through December 31, 2027. Applications must be submitted by December 31, 2027. Program opened January 5, 2026.
Open Application Portal →Ineligible Organizations
- Organizations that are not current producers of biodiesel or renewable diesel
- Producers not eligible to generate Clean Fuel Regulation credits
- Producers using exclusively non-North American feedstocks
- Producers who do not sell fuel into the Canadian market
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Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Stacking partner data not yet available.
Clawback Risk
Medium RiskIncentive payments are based on verified production volumes. Inaccurate reporting of production volumes, feedstock sources, or Canadian market sales may result in recovery of incentive payments.
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How Biofuels Production Incentive Compares
Side-by-side with similar programs
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