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Released November 08, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Canada has released further details on tax incentives to support investment in clean energy generation, energy storage systems and clean hydrogen, as part of the federal government's 2022 Fall Economic Statement. Industrial Info is tracking US$30 billion worth of renewable-energy projects in Canada's Power Industry that have high or medium (70-99%) probability of moving forward as planned.
The clean energy and hydrogen tax credits were initially introduced as part of the government's most recent budget commitment, which allocated funding to accelerate the country's clean electricity generation. For more information, see Industrial Info's April 15, 2022, article - Canadian Government to Advance Clean Energy Agenda.
The statement proposes a 30% refundable tax credit for electricity generation such as wind and solar photovoltaic (PV) power, small-scale hydropower and small modular nuclear reactors; and energy storage systems "that do not use fossil fuels in their operation," including battery energy storage systems (BESS) and pumped hydro storage.
The investment tax credit is expected to cost C$6.7 billion (US$4.9 billion) over five years, starting in 2023-24, and also supports investment for low-carbon heat equipment (e.g., heat pumps) and industrial zero-emission vehicles and related equipment.
While the proposed tax credit initially only covers small-scale hydropower generation, the statement said the government will analyze additional eligible technologies (e.g., large scale-nuclear and large-scale hydroelectric).
According to the Canadian Centre for Energy Information, as of August, renewable electricity accounted for about 65% of Canada's total generation; hydropower accounted for the majority of that amount.
BC Hydro (Vancouver, British Columbia) is at work on constructing the US$6.3 billion Site C Dam Project in Fort St. John, British Columbia (B.C), after facing a series of delays related to COVID-19. The 1.1-gigawatt (GW) hydroelectric power station would be the third dam and generating station on the Peace River in northeast B.C. According to the project website, it would provide about 5,100 gigawatt-hours of energy each year to the province's electricity grid--enough to power about 450,000 homes per year. The completion is expected at the end of 2024. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a detailed project report.
In terms of hydro pumped storage, TC Energy (NYSE:TRP) (Calgary, Alberta) is proposing a 1-GW, grassroot plant in Meaford, Ontario, but it remains in an early study phase, where plenty of factors could alter or eliminate the proposed investment. Click here for the project report.
Wind trails hydropower in total investment value, accounting for US$3.1 billion worth of projects. Borea Construction, a subsidiary of Pomerleau Incorporated (Saint-Georges, Quebec), is performing engineering, procurement and construction (EPC) services for EDP Renewables Canada Limited's (Toronto) Sharp Hills Windfarm project in Sedalia, with a generating capacity of 298.2 megawatts (MW). The project consists of a 281.4-MW first phase, which would utilize 67 turbines, and a related substation. Construction on both projects is underway, with completion expected in October 2023. The 50.4-MW second phase would follow. Click here for related project reports.
Subscribers to Industrial Info's GMI database can click here for a full list of renewable-energy projects in Canada that have a high and medium probability (70-99%) of moving forward as planned.
Clean Hydrogen
The government is proposing a 40% investment tax credit for hydrogen projects that meet all eligibility requirements regarding carbon intensity, with incentives lessening as related carbon emissions go up. The credit will be phased out after 2030. "In the coming weeks, the Department of Finance will launch a consultation on how best to implement an investment tax credit for clean hydrogen based on the lifecycle carbon intensity of hydrogen," according to the statement. Along with generation and storage, meeting labor conditions will be worth 10% of the credit.
Industrial Info is tracking 10 clean hydrogen projects in Canada, worth more than US$8 billion, all of which are in an early study phase. This includes the multi-phase development of EverWind Fuels' Point Tupper green hydrogen and ammonia plant project. The first phase involves constructing a brownfield green hydrogen production facility, utilizing a 200-MW electrolyzer, by converting an existing refined products storage terminal that EverWind purchased earlier this year from NuStar Energy L.P. (NYSE:NS) (San Antonio, Texas). Click here for a detailed project report on the green hydrogen plant.
Subscribers to Industrial Info's GMI database can click here for a full list of clean hydrogen projects in Canada.
Subscribers can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The clean energy and hydrogen tax credits were initially introduced as part of the government's most recent budget commitment, which allocated funding to accelerate the country's clean electricity generation. For more information, see Industrial Info's April 15, 2022, article - Canadian Government to Advance Clean Energy Agenda.
The statement proposes a 30% refundable tax credit for electricity generation such as wind and solar photovoltaic (PV) power, small-scale hydropower and small modular nuclear reactors; and energy storage systems "that do not use fossil fuels in their operation," including battery energy storage systems (BESS) and pumped hydro storage.
The investment tax credit is expected to cost C$6.7 billion (US$4.9 billion) over five years, starting in 2023-24, and also supports investment for low-carbon heat equipment (e.g., heat pumps) and industrial zero-emission vehicles and related equipment.
While the proposed tax credit initially only covers small-scale hydropower generation, the statement said the government will analyze additional eligible technologies (e.g., large scale-nuclear and large-scale hydroelectric).
According to the Canadian Centre for Energy Information, as of August, renewable electricity accounted for about 65% of Canada's total generation; hydropower accounted for the majority of that amount.
BC Hydro (Vancouver, British Columbia) is at work on constructing the US$6.3 billion Site C Dam Project in Fort St. John, British Columbia (B.C), after facing a series of delays related to COVID-19. The 1.1-gigawatt (GW) hydroelectric power station would be the third dam and generating station on the Peace River in northeast B.C. According to the project website, it would provide about 5,100 gigawatt-hours of energy each year to the province's electricity grid--enough to power about 450,000 homes per year. The completion is expected at the end of 2024. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a detailed project report.
In terms of hydro pumped storage, TC Energy (NYSE:TRP) (Calgary, Alberta) is proposing a 1-GW, grassroot plant in Meaford, Ontario, but it remains in an early study phase, where plenty of factors could alter or eliminate the proposed investment. Click here for the project report.
Wind trails hydropower in total investment value, accounting for US$3.1 billion worth of projects. Borea Construction, a subsidiary of Pomerleau Incorporated (Saint-Georges, Quebec), is performing engineering, procurement and construction (EPC) services for EDP Renewables Canada Limited's (Toronto) Sharp Hills Windfarm project in Sedalia, with a generating capacity of 298.2 megawatts (MW). The project consists of a 281.4-MW first phase, which would utilize 67 turbines, and a related substation. Construction on both projects is underway, with completion expected in October 2023. The 50.4-MW second phase would follow. Click here for related project reports.
Subscribers to Industrial Info's GMI database can click here for a full list of renewable-energy projects in Canada that have a high and medium probability (70-99%) of moving forward as planned.
Clean Hydrogen
The government is proposing a 40% investment tax credit for hydrogen projects that meet all eligibility requirements regarding carbon intensity, with incentives lessening as related carbon emissions go up. The credit will be phased out after 2030. "In the coming weeks, the Department of Finance will launch a consultation on how best to implement an investment tax credit for clean hydrogen based on the lifecycle carbon intensity of hydrogen," according to the statement. Along with generation and storage, meeting labor conditions will be worth 10% of the credit.
Industrial Info is tracking 10 clean hydrogen projects in Canada, worth more than US$8 billion, all of which are in an early study phase. This includes the multi-phase development of EverWind Fuels' Point Tupper green hydrogen and ammonia plant project. The first phase involves constructing a brownfield green hydrogen production facility, utilizing a 200-MW electrolyzer, by converting an existing refined products storage terminal that EverWind purchased earlier this year from NuStar Energy L.P. (NYSE:NS) (San Antonio, Texas). Click here for a detailed project report on the green hydrogen plant.
Subscribers to Industrial Info's GMI database can click here for a full list of clean hydrogen projects in Canada.
Subscribers can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
