Emissions Reduction Fund: Helping Canada Achieve a Greener Future

Emissions Reduction Fund

Greenhouse gas emissions are a rising concern as Canadian industries grow. Methane is one of the significant contributors to emissions, especially in Canada’s oil and gas sector. To reduce such Greenhouse Gas Emissions, Natural Resources Canada (NRC) has put together the Emissions Reduction Fund (ERF) – Onshore Program. With close to $700M available in funding, this program aims for a greener future by helping Canadian onshore oil and gas companies progress towards reducing or eliminating methane emissions.

Type of Funding Available

Funding from the Emissions Reduction Fund is dependent per-project. The fund can cover up to 75% of project costs and up to 90% of stacking costs (from other sources), providing $100K up to $50M. The payback period is 5-years after the completion of the project, with multiple projects accepted per application.

Eligibility Requirements

  • Incorporated or registered legal entity within Canada
  • An oil and gas company, or provincial, territorial, or municipal government owning or operating an upstream/midstream conventional, tight, shale oil and gas facility located within Canada
  • Able to provide mandatory documentation listed within the Guide (Section 6.2) provided by the NRC, as well as information contained in an engineer certified BOA or equivalent

Eligible Projects

For projects looking to eliminate their Greenhouse Gas Emissions from one or more sources entirely:

  • Conservation and active metering of natural gas that is intentionally vented, either into the atmosphere or into a flare system
  • Development of new or upgrading existing gas gathering or processing infrastructure
  • The installation of compressed atmospheric air or inert non-hydrocarbon gas storage or piping infrastructure

For projects looking to lower their Greenhouse Gas Emissions from one or more sources:

  • Incinerating or flaring of natural gas previously vented intentionally
  • Reducing the volume of intentionally vented natural gas to the atmosphere from pneumatic devices

Eligible Activities

  • BOA or equivalent certified by an engineer registered within Canada
  • Salaries and benefits for employees on the payroll of the recipient for the time spent by employees on the project
  • All Professional, scientific, technical, management, data collection, and contracting services
  • Travel expenditures related to the project, including housing, meals, and other accommodations
  • License fees, data purchases, certifications costs, and any other costs related to permits and fees for regulatory compliance as well as inspection for the implementation of the project
  • Capital expenditures, improving existing equipment or the purchase and installation of new equipment to reduce methane emissions
  • Material, supplies, and equipment
  • Equipment leasing or rental
  • Up to 15% of the total project costs can be claimed as overhead expenditures if they are related to the conduct of the project

Project Timeline

The deadline for a proposal request under the Emissions Reduction Fund Onshore Program, Intake 3, is March 31, 2022, by 8:00 p.m. EST. The funding for projects will be entirely allocated by March 31, 2023.

Contact EVAMAX today to get started on your application!

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