Government of Canada invests $15 Million in Clean Fuels Projects in the Niagara Region and Across Canada

THOROLD, ON , March 8, 2024 /CNW/ - Canadians and businesses use fuel every day — to produce and transport goods and to get from place to place. These fuels, like gasoline and diesel, help power our economy, but their extraction and combustion represent a significant source of pollution in Canada. In the global race to net zero, countries and businesses around the world are making a shift to lower- and non-emitting fuels, and the federal government is positioning Canada as a leading producer of these fuels.

Today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, announced in Thorold, Ontario, a federal investment of $15 million to support six clean fuels projects across Canada, including $10 million for two projects in the Niagara region. The federal investments include:

• $4.6 million to StormFisher Hydrogen to support a front-end engineering (FEED) study for a renewable natural gas (RNG) production facility at BMI's Multimodal Hub in Thorold, Ontario.
  • If this study leads to a positive investment decision, the project could support over 100 construction jobs and around 30 full-time jobs during operations in Thorold, Ontario.
  • Upon the completion of the FEED study in the summer of 2025 and construction of the planned $200-million low-carbon fuel production facility in 2027, StormFisher Hydrogen will combine renewable electricity from Ontario's clean grid along with biogenic CO₂ emissions from local industry to produce 1, 250,000 gigajoules of RNG and decarbonize16,000 homes and businesses in Ontario.
  • The project will support the decarbonization of the Canadian natural gas system and anchor an innovative hydrogen hub in Thorold that will help attract other clean energy and technology businesses to the Niagara region.
    
    
• Over $5 million to CHAR Technologies to support FEED studies that will enable CHAR to replicate their first-of-its-kind woody-biomass-to-renewable-energy facility in Thorold, Ontario in other parts of Canada.
  • Supported by an existing investment of $5 million from NRCan, CHAR is finalizing its construction of its clean fuels production facility at BMI's Multimodal Hub in Thorold, which will convert woody biomass to renewable energy like RNG and biocarbon. The new NRCan funding announced today will enable CHAR Technologies to replicate this work at four new facilities in Kirkland Lake, Ontario; Drayton Valley, Alberta; and Saint Félicien and La Sarre, Quebec and create a distributed network of low-carbon fuels production facilities across three provinces in Canada.
  • Taken together, the Thorold, Ontario, project — which is expected to reach commercial production this year — and the four other clean fuel production facilities in Kirkland Lake, Ontario, Quebec; and Alberta – which are expected to come online in the following two years — will maximize the value of underutilized waste wood resources and help decarbonize Canada's steel and mining industries, and Canadian gas utilities.
    
    
• $5 million to support Azure Sustainable Fuels Corp. in delivering a FEED study to support the construction and operation of a sustainable aviation fuels (SAF) production facility in Port Colborne, Ontario.
  • If the project reaches a positive Final Investment Decision (FID), following the completion of the FEED study, it is expected that the Azure’s SAF project would support approximately 1,500 construction jobs and 150 full time jobs during operations in Port Colborne, Ontario.
  • The FEED study is expected to be completed in by the end of 2024 and the construction of the planned facility would be commenced immediately following a positive FID.  The proposed project will be located on the north end of Port Colborne, Ontario, along the Welland Canal — a strategic location that will provide immediate access to local and global markets.
  • The planned processing facility in Port Colborne will leverage Canada’s agricultural sector to produce SAF that will meet the growing demand to help reduce emissions from the aviation sector.  Azure’s proposed project in Port Colbourne is one of three projects that Azure is progressing in Canada, with support from the federal government, to provide a scalable growth platform to provide a significant source of SAF required to meet domestic and international mandates to reduce CO₂ emissions.

We are leveraging Canada's innovative clean tech companies and abundant range of feedstocks — including forest byproducts, agricultural crops and our low-emitting electricity grid — to grow Canada's domestic production of clean fuels across the economy. In so doing, we are supporting the decarbonization and competitiveness of heavy industry such as steel manufacturers, mining operations and pulp mills, and will generate economic opportunities through exports and direct foreign investment for farmers, businesses, workers and more.

These ongoing efforts and today's investments will grow Canada's clean fuels market and help position Canada as a reliable producer and supplier of the low-carbon fuels that Canadians and the world want and need. They are also important to the growth of Canada's clean fuels industry in helping to keep pace with the global demand to act on climate change while bolstering energy security and delivering affordability.

Quotes

"NRCan is proud to support the growth of the low-carbon economy in Canada through the Clean Fuel Fund. Today's federal investment of $15 million in clean fuels projects across Canada, including $10 million for projects right here in the Niagara region, will help decarbonize the operations of high-emitting sectors like steel, mining and aviation, create good jobs in local communities, power homes and businesses efficiently and attract investment into Canada's clean fuels market. We will continue to support innovative projects to decarbonize and keep going on the energy transition for the Niagara region and for the country as a whole."

The Honourable Jonathan Wilkinson 
Minister of Energy and Natural Resources

 "CHAR Tech is honoured to be the recipient of Natural Resources Canada Clean Fuels funding. We extend our gratitude to the Government of Canada and Minister Wilkinson for their unwavering commitment to environmental stewardship. With the support of the Clean Fuels Fund, we are poised to swiftly actualize our proprietary process, fostering the advancement of localized sustainable energy solutions throughout Canada."

Andrew White
Chief Executive Officer, CHAR Technologies

"Azure is dedicated to building the next major SAF facility to come to market. With the support of NRCan's Clean Fuel Fund, Azure is advancing FEED studies in Ontario, Manitoba and British Columbia as part of a portfolio approach to provide a scalable growth platform that enables cost efficiencies and shared learnings. Azure is pleased to be partnering with the federal government on a suite of projects that will provide stable, long-term demand for Canadian agricultural products as well as support the energy transition and a cleaner environment by enabling the reduction of emissions from aviation by up to 80 percent."

Douglas Cole
CEO, Azure Sustainable Fuels Corp.

"StormFisher Hydrogen appreciates the support from NRCan in helping us continue to advance our green hydrogen to RNG project FEED study in Ontario. The Clean Fuel Fund is a well-designed program that is beneficial to supporting the growth of the low-carbon economy in Canada. We look forward to continuing to work with the federal government in advancing our project that helps decarbonize the hardest-to-abate sectors in the economy."

Jud Whiteside
CEO, StormFisher Hydrogen

"Today's announcement proves yet again that our community can lead, and benefit from, the new economic opportunities that come from fighting climate change. This funding will help advance clean fuels while supporting new jobs, attracting more investments, and bringing more clean energy and technology businesses to our region. This investment exhibits the government's commitment to strengthen the economy in Niagara Centre and its confidence in the Niagara Ports Multimodal Trade Corridor."

Vance Badawey 
Member of Parliament, Niagara Centre

"Today's announcement brings over $10 million in investment right here in the Niagara Region, helping to create good sustainable jobs, power homes with clean energy, and reduce emissions in our steel, mining and aviation sectors. As the world increasingly turns to clean energy to power economies and address climate change, this federal investment will ensure communities like St. Catharines, Thorold and Niagara are there to benefit, and assist."

Chris Bittle 
Member of Parliament, St. Catharines

Quick Facts

• Federal funding was provided through Natural Resources Canada's Clean Fuels Fund (CFF), which supports building new and expanding existing clean fuel production facilities, including hydrogen, renewable diesel, synthetic fuels, renewable natural gas and sustainable aviation fuel. The fund also supports feasibility and front-end engineering and design (FEED) studies that will create jobs and enable the sector to grow at the size and pace required to contribute to Canada's climate goals. 
• Launched in June 2021, the Clean Fuels Fund is investing $1.5 billion to grow the production of clean fuels in Canada, such as hydrogen, renewable diesel and natural gas, cellulosic ethanol, synthetic fuels and sustainable aviation fuel. 
• In addition to the investment made today into Azure Sustainable Fuels Corp.'s sustainable aviation fuel project in Port Colborne, Ontario, through NRCan's Clean Fuels Fund, the Canada Infrastructure Bank is providing Azure Sustainable Fuels Corp. with $3.4 million in funding to support this project — representing a combined total federal investment of $8.4 million.
• These investments come as the Governments of Canada and Ontario are working together through the Canada-Ontario Regional Energy and Resource Table to finalize a Collaboration Framework that includes joint actions to advance shared priorities in electrification, nuclear energy, critical minerals, hydrogen and the forest sector, as well an improved permitting process and increased regulatory effectiveness and efficiency to get clean energy projects online in time to meet rising demand.

Related Links

• Sustainable Jobs Plan
• 2030 Emissions Reduction Plan: Clean Air, Strong Economy
• Ontario Becomes Ninth Jurisdiction to Join Canada's Regional Energy and Resource Tables
• $4.9 Million for a First-of-its-Kind Woody-Biomass-to-Renewable-Energy Facility in Canada (December 2022)
• $6 Million to Unlock Sustainable Aviation Fuel Production in Manitoba (January 2024)

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SOURCE Natural Resources Canada

Media Relations, 343-292-6100, [email protected]; Carolyn Svonkin, Press Secretary, Office of the Minister of Energy and Natural Resources Canada, 343-597-1725, [email protected]