Call for Proposals: Mining Decarbonization Demonstration Project (Canada)

The Call focuses specifically on demonstration activities within Canadian upstream to midstream operations, which is critical to support the scaling and commercialization of the technologies required to achieve impactful emissions reductions and enable the sustainable development of Canada’s low-carbon mineral supply chains.

Objectives

• The call will focus on these technology pathways: mobile equipment, stationary combustion sources and energy efficiency.
• Projects must address the following objectives:
  • De-risk and accelerate the adoption of innovative technologies in Canada’s mining sector that reduce upstream and midstream operational emissions;
  • Advance the commercialization of clean technology solutions to position Canadian innovators as global leaders in mining sector decarbonization; and
  • Foster collaboration between clean technology developers and owners and/or operators of mining, milling, and/or smelting assets in Canada.

Funding Information

• The call is open to demonstration projects that request between $1,000,000 and $5,000,000, comprising up to 50% of total project cost, over a period of up to a maximum of six years.

Eligible Expenses

• Eligible Expenditures for an approved project must be directly related to, and necessary for, the implementation and conduct of a project and will include:
  • Salaries and benefits for employees on the payroll of the Recipient for the actual time spent by the employees on the project
  • Training and workshops
  • Professional, scientific, technical and contracting services
  • Travel expenditures, including meals and accommodation, based on National Joint Council Rates, adjusted to reflect costs in Northern and remote areas, where appropriate
  • Capital expenditures such as the purchase, installation, testing and commissioning of qualifying equipment, materials and products, including diagnostic, testing tools and instruments, and original equipment manufacturer equipment warranty (including extended warranties where deemed appropriate to mitigate risk and lack of capacity)
  • Other expenses related to the project or activity including:
    • Laboratory and field supplies, and materials;
    • Printing services and translation;
    • Data collection services, including processing, analysis and management;
    • Facility costs for seminars, conference room rentals etc. (excluding hospitality);
    • Construction Insurance.

Ineligible Expenses

• Costs ineligible for reimbursement from the Call (but permitted as part of the proponent’s contribution to the Total Project Cost) will include:
  • Feasibility studies and front-end engineering and design (FEED) studies
  • All costs incurred within the Total Project Cost period but outside the Eligible Expenditure Period are considered as Ineligible Expenditures
  • Overhead expenses exceeding 15% of Eligible Expenditures may be included as Ineligible Expenditures and count towards the proponent’s portion of the Total Project Cost provided that the sum of overhead expenses (Eligible plus Ineligible) does not exceed 15% of the Total Project Cost
  • The reimbursable portion of Federal and Provincial Taxes
  • In-kind costs.

Eligible Projects

• While projects may be implemented throughout the mining lifecycle, including exploration, development, operations, and closure as well as at multiple sites, they must meet the following criteria:
  • Projects must start at Technology Readiness Level (TRL) 6 to 8
  • Projects must demonstrate innovative energy decarbonization technologies at Canadian upstream to midstream operations for metals, minerals, industrial minerals, or metallurgical coal
  • Projects must take place in operational settings, including test centers that have appropriate operational environments
  • Projects must reduce GHG emissions by advancing energy decarbonization technologies through one of the following technology pathways defined as:
    • Mobile Equipment: replacing or retrofitting on-site mobile equipment that combusts fossil fuel (diesel, gasoline, etc.) with low- or non-GHG emitting alternatives to reduce operational emissions. Mobile equipment refers to machinery predominantly used in activities throughout the mine lifecycle such as excavation, material handling, backfilling, and on-site transportation.
    • Stationary Combustion Sources: replacing or retrofitting on-site stationary equipment or plants that combust fossil fuels with low- or non-GHG emitting alternatives predominantly for power generation, ventilation air or facility heating, and on-site processing and/or smelting of ores.
    • Energy Efficiency: improving energy efficiency of electrified processes. Examples may include energy efficiency improvements of ore processing and comminution, AI/computerization of ore sorting, compressed air systems, ventilation, and heat pump technology.

Ineligible Activities

• Upstream to midstream operations exploiting thermal coal and/or oil sands are ineligible for funding
• Indirect and energy avoidant technologies such as remote sensing, land use change improvements, and negative emissions projects are ineligible for funding
• Decarbonization technologies including small modular reactors (SMRs) and carbon capture, utilization, and storage (CCUS) including, for example, carbon mineralization of mine tailings or CO2 separation from flue gas streams, are ineligible for funding.

Eligibility Criteria

• Eligible Canadian Recipients will be:
  • Legal entities validly incorporated or registered in Canada including:
    • For profit and not for profit organizations
    • Community groups
    • Canadian academic institutions
  • Provincial, territorial, regional and municipal governments and their departments and agencies where applicable
  • Indigenous:
    • Indigenous communities or governments
    • Tribal Councils or entities that fulfill a similar function (e.g., general councils)
    • National or regional Indigenous councils, or tribal organizations
    • Indigenous (majority owned and controlled by Indigenous people) for-profit or not-for-profit organizations.

For more information, visit Government of Canada.