Funding & Incentives

A summary of funding and incentive programs available for biogas developers.

Canadian Agricultural Partnership

The Canadian Agricultural Partnership is a five-year, $3 billion investment by federal, provincial and territorial governments to strengthen the agriculture and agri-food sector. Federally-funded activities and programs to support sector growth focus on three key areas: Growing trade and expanding markets - $297 million; Innovative and sustainable growth in the sector - $690 million; and Supporting diversity and a dynamic, evolving sector - $166.5 million Federal program details and application forms are now available.

Agricultural Clean Technology Program

On June 4, 2021, the Government of Canada announced the new $165-million Agricultural Clean Technology Program. Under the program, farmers and food processors will have access to funding to help develop and adopt the latest clean technologies to reduce greenhouse gas (GHG) emissions and enhance their competitiveness. This is an important opportunity for the biogas industry. The program has a dedicated carve-out for clean energy projects ($10M over the next two years) under the Adoption Stream that will extend over five years from 2021 to 2026. The Research and Innovation Stream will also provide up to $50M in funding over seven years from 2021 to 2028.

Federal Output-Based Pricing System Proceeds Fund

On February 14th, Minister of Environment and Climate Change Steven Guilbeault launched the Output-Based Pricing System Proceeds Fund, a new program to support industrial initiatives that reduce greenhouse gas (GHG) emissions by deploying clean energy and clean technology. The OBPS is one of two elements under the federal carbon pricing system, along with the fuel charge on consumption. It covers facilities from heavy-emitting industrial sectors in provinces without a pricing system for industrial emitters, including Manitoba, Saskatchewan, New Brunswick and Ontario (for the years 2019 to 2021). The programs will invest the proceeds from the 2019 compliance period of the OBPS, which amount to $161 million. Funds will be invested in projects that reduce emissions from covered facilities in the jurisdictions they were collected. The program has two streams: the Future Electricity Fund and the Decarbonization Incentive Program.

Green Municipal Fund Accepting Biogas Project Proposals

The Federation of Canadian Municipalities are accepting biogas project proposals through the Green Municipal Fund. Any communities that are interested in funding for a biogas project (or companies partnering with communities) can review funding opportunities on the FCM website: Funding opportunities | FCM. Depending on the nature of the project and anticipated benefits the project may qualify in the Waste / Energy / Water sectors.

Smart Renewables and Electrification Pathways Program

The Smart Renewables and Electrification Pathways Program (SREPs) provides up to $964 million over four years for smart renewable energy and grid modernization projects. This program will significantly reduce greenhouse gas emissions by encouraging the replacement of fossil-fuel generated electricity with renewables that can provide essential grid services while supporting Canada’s equitable transition to an electrified economy. SREPs will provide direct financial support to eligible renewable energy and grid modernization projects during the construction phase. Projects must use market ready technologies and apply workplace equity, diversity, and inclusion components. The Request for Project Registrations under the Smart Renewables and Electrification Pathways Program is now open.

Tax savings for Canadian Renewable and Conservation Expenses

Under Classes 43.1 and 43.2 certain businesses and organizations also have an accelerated capital cost allowance on certain types of eligible equipment. This credit aims to make renewable energy projects, including biogas, more attractive. The deduction rate obtained can go up to 50%, depending on the case. Consult the technical guide for more information on the requirements.

Québec’s Biomethanation and Composting Organic Matter Treatment Program (PTMOBC)

PTMOBC supports municipalities and businesses in the installation of infrastructures for biomethanation and composting of organic materials. It aims to reduce the amount of organic matter eliminated in Quebec and the GHG emitted during this process. The program is extended until 2022.

Québec’s Renewable Natural Gas Production Support Program

The Renewable Natural Gas Production Support Program (PSPGNR) supports development of RNG in Québec. The main features are: specific component for the financing of feasibility studies which allows subsidizing up to 75% of the cost incurred for, up to a maximum of $ 300,000 per project; the maximum level of financial assistance per RNG production and injection project into the natural gas distribution network increases from $ 8 million to $ 12 million; new eligible RNG production technologies; possibility for applicants to submit a preliminary draft in order to verify their eligibility for the PSPGNR; continuous assessment of submitted projects.

ECO Employment Programs - Training & Wage Subsidies for Environmental Jobs

As the steward for the Canadian Environmental workforce across all industries, ECO Canada offers employment programs that stimulate environmental career pathways, skill development, business growth, workforce support and workforce advancement through wage and training funding. These programs help employers attract new talent, while saving initial wage and training costs. Best of all, young practitioners and students will be able to kickstart their career journey and gain meaningful work experience. Thanks to our funding partners, ECO Canada has several programs available. Each program has unique eligibility requirements for employers and job candidates.

NRC-IRAP Youth-Green Program

The National Research Council (NRC) of Canada’s Industrial Research Assistance Program (IRAP) is making available up to $10,000 to employ Canadian youth between 15-30 years of age. Companies eligible for this program must be considered “Green” by having their business align with the green economy sectors of industries. The companies need to be incorporated and have 1 to 500 full-time employees. These Green companies must use the hired Youth to produce an environmental benefit. For further information or to determine if you qualify, please contact NRC-IRAP at 1-877-994-4727. Please also visit the NRC website and refer to the Youth-Green Program.

Science and Technology (S&T) Internship Program - Green Jobs

Natural Resources Canada’s S&T Internship Program - Green Jobs provides wage subsidies to eligible employers across Canada to hire and mentor youth (aged 15-30) in the natural resources sector, including in energy, forestry, mining, earth science, and clean technology. Internships are for full-time employment and require participants to be available 30 hours per week for up to 12 months. Find more information on the S&T Internship Program, including application instructions for employers and youth participants.

BioTalent Canada Career Starter Program

BioTalent Canada’s Career Starter wage subsidy program provides bio-economy employers with funds to provide opportunities to barriered youth. The $1.5M project bridges the gap between talent and industry, introduces participants to the bio-economy as a viable career path, and enables employers to strengthen their workforce. Funded in part by the Government of Canada’s Youth Employment and Skills Strategy Program, Career Starter provides employers with 50% of a youth’s salary to a maximum of $20,000 in wage subsidies for a three to nine-month job placement.