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
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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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Eligibility & Details

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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
  • 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
--/5
Competition
--/5
Approval Rate
--%
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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

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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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Frequently Asked Questions

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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. New entrants without Clean Fuel Regulation credit history are ineligible.
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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