Canada Announces Support for New Hydrogen Project in Nova Scotia
January 16, 2024
On November 17, 2023, the Honourable Sean Fraser, Canada’s Minister of Housing, Infrastructure and Communities, announced on behalf of the Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development, an agreement to support a clean energy hub that EverWind Fuels is developing in Nova Scotia.
EverWind and Export Development Canada on behalf of the Government of Canada reached an agreement in principle on terms for a $125-million debt facility to support the project, pending final due diligence. The project will help put Atlantic Canada on the global stage as a leader in clean energy.
Hydrogen is expected to play a key role in meeting Canada’s net-zero goals. Under the Government of Canada’s plan to build Canada’s clean economy, more than 90 clean-growth projects with a total value exceeding $40 billion, including private investment, began over the past 3 years or will soon move forward into construction across Canada.
Quotes
“With the global demand for hydrogen increasing, there is an opportunity for Canada to be a top supplier of hydrogen in a net-zero emissions world. The EverWind project will create good middle-class jobs and opportunities that are both environmentally and economically sustainable.”
– Mary Ng, Minister of Export Promotion, International Trade and Economic Development
Quick Facts
- The Hydrogen Strategy for Canada, released in December 2020, lays out an ambitious framework for actions that will position Canada as a world-leading producer, user and exporter of clean hydrogen and associated solutions in support of its net-zero emissions targets.
- Canada has committed significant financial and regulatory support for clean technologies like hydrogen. Canada’s Budget 2023 includes approximately $60 billion in new spending, of which investments and measures in clean technology account for almost $21 billion.
- Canada also put forward details of the Clean Hydrogen Investment Tax Credit in Budget 2023. Tax support varies between 15% and 40% of eligible project costs. Projects that produce the lowest carbon-intensity hydrogen receive the highest levels of support.
- Property that is required to convert clean hydrogen to clean ammonia is also eligible for the Clean Hydrogen Investment Tax Credit, at 15%.
- Canada’s 2023 Fall Economic Statement announced that the Clean Hydrogen Investment Tax Credit was available from March 28, 2023.
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