Government of Canada Supports Clean Hydrogen Production Through Budget23
World Energy GH2 applauds measures which will help ensure competitiveness with the US Inflation Reduction Act
ST. JOHN’S, NL — World Energy GH2 congratulates Deputy Prime Minister and Minister of Finance Chrystia Freeland on the tabling of Budget23 “A Made-in-Canada Plan” in the House of Commons. The budget provides much-anticipated details around the Clean Hydrogen Investment Tax Credit (ITC) announced in the Fall Economic Statement, and outlines the role of the Canada Growth Fund in helping to launch Canada’s green hydrogen sector.
The comprehensive ITC announced in the budget sets the stage for Canada to compete on a global level against the backdrop of strong support mechanisms in other jurisdictions, particularly, the US Inflation Reduction Act (IRA). The ITC must be coupled with contracts for difference (CfDs) as part of the Canada Growth Fund to make our country truly competitive with the US IRA. CfDs are not just about de-risking investments for project developers, they are also an investment vehicle which can return funds to the Canada Growth Fund as the global market for green hydrogen develops.
With many of the ITC details confirmed, and a broad framework set for the launch of the Canada Growth Fund, efficient implementation of CfDs will be crucial to ensuring that Canada attracts clean energy investments, such as World Energy GH2’s CAD 16B Project Nujio’qonik on the west coast of Newfoundland and Labrador. World Energy GH2 commits to remaining engaged with Finance Canada as it finalizes the details of what capital costs are eligible under the Clean Hydrogen and the Clean Technologies ITCs.
Canada is a longstanding exporter of energy, and it is crucial to the Canadian economy that we are at the forefront of new solutions, such as clean hydrogen, as the globe continues to transition towards low-carbon and net-zero sources of energy.
“All of Canada wins when clean energy wins,” said John Risley, a Director at World Energy GH2. “Budget23 sets the right conditions for the establishment of a multi-billion-dollar clean hydrogen sector in Atlantic Canada. Our project will be one of the largest private-sector investments in the history of the region, and there is more to come.”
“Canada has committed to helping our allies in Europe transition to cleaner energy, supplied by stable countries. This commitment was reflected in German Chancellor Olaf Scholz‘ and European Commission President Ursula von der Leyen’s visits to Canada. Now, it is time to make good on that promise and deliver our first shipments of clean hydrogen in 2025. Budget23 sends a signal across the Atlantic that our allies can count on Canada.”
About World Energy GH2
World Energy GH2 Inc. is a Newfoundland and Labrador-based renewable energy company. Our Project Nujio’qonik is a consortium of partners investigating the feasibility of the construction and operation of a cost-effective, wind power to green hydrogen/ammonia production facility located on the west coast of Newfoundland and Labrador. Project Nujio’qonik aims to be Canada’s first commercial green hydrogen/ammonia producer created from 3+ Gigawatts of wind energy in one of the world’s best wind resource regions.