Organic Waste to Energy (OWE)

Overview of the Organic Waste to Energy (OWE) program:

This funding stream, part of the Green Municipal Fund (GMF) and administered by the Federation of Canadian Municipalities (FCM), is designed to help municipalities implement fully developed, shovel-ready projects that transform organic waste into energy. These capital projects support community efforts to reduce GHG emissions, divert organic materials from landfills, and produce renewable energy or fuel sources through technologies such as anaerobic digestion, composting, or thermal processing. The program aims to advance Canada’s transition to a circular economy, where municipal solid waste is treated as a resource. Eligible projects must demonstrate significant, measurable environmental benefits—including methane reduction and energy generation from organic feedstocks—and must be based on a completed feasibility study or equivalent. Municipalities can use this funding to implement infrastructure such as biogas facilities, energy-from-waste plants, and integrated waste-to-energy systems. Projects can involve food waste, green bin materials, sewage sludge, or other eligible organic streams. Additional priorities include community engagement, long-term operation and maintenance planning, and the potential for replication in other jurisdictions. The program offers a combined grant and low-interest loan, making it possible for local governments to access large amounts of capital with reduced financial burden.

Benefits of the Organic Waste to Energy (OWE) program:

• Access to up to $10 million in funding for high-impact infrastructure
• Supports creation of clean, renewable energy from organic waste
• Reduces methane and GHG emissions from landfills
• Promotes waste diversion and landfill lifespan extension
• Enables development of innovative circular economy projects
• Strengthens municipal leadership in sustainability and climate action
• Encourages community awareness and engagement around organics
• Enables municipalities to reduce waste management costs over time
• Contributes to federal and provincial net-zero targets

Eligibility criteria of the Organic Waste to Energy (OWE) program:

• Eligible Applicants:
• Canadian municipalities of any size
• Municipally owned corporations (e.g., utility or waste authorities)
• Municipal partners (Indigenous governments, non-profits with municipal support)
• Eligible Projects:
• Must be capital-ready (construction and procurement can begin soon after funding approval)
• Must involve organic waste-to-energy conversion (e.g., anaerobic digestion, biogas production)
• Must include a GHG quantification report showing emissions reductions
• Must be supported by a completed feasibility study, business case, or net-zero roadmap
• Must show a plan for operations, maintenance, and public communication
• Waste Sources May Include:
• Household food scraps
• Yard and garden waste
• Source-separated organics
• Sewage sludge or biosolids
• Food industry or institutional organic waste