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Canada to launch new tax credit for hydrogen production

The Canadian government has proposed a significant tax credit for hydrogen production in the country - at least 40% if all conditions are met. Citing the Infrastructure Reduction Act in the US, the Department of Finance sees adoption of “competitive” measures as critical to make sure Canada is not “left behind”. The government will shortly launch industry consultation on how best to implement the tax credit, based on lifecycle carbon intensity of hydrogen.

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Maritime ammonia to link UAE, Canada

Canada and the UAE will collaborate as part of the new Clean Energy Marine Hubs (CEMH) initiative: a private-public platform launched by the Clean Energy Ministerial to accelerate deployment of alternative maritime fuels. This comes as the UAE government announced it is developing a new national hydrogen strategy with GHD Group and German research institute Fraunhofer-Gesellschaft.

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New Canadian export projects unveiled

Last month, four significant production projects were announced in Canada’s maritime provinces:

  • An export facility producing ammonia fuel at the Port of Belledune, New Brunswick. The Port Authority has also signed an agreement to create a direct trade corridor with the Port of Wilhelmshaven in Germany.
  • Two projects powered by onshore wind in southwest Newfoundland: the 100,000 tonnes-per-year Project Nujio’Qonik, and the 900,000 tonnes per year Project Lynx, with the latter being developed by Fortescue Future Industries.
  • And the Spirit of Scotia: a sprawling, GW-scale renewable hydrogen project being developed by Green Hydrogen International.

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Ammonia exports from Canada to Germany

German energy giants E.ON and Uniper have signed agreements to offtake 500,000 tonnes of renewable ammonia each from EverWind Fuel’s under-development project at Point Tupper, Nova Scotia, beginning from 2025. The backdrop for these offtake MoUs was the signing of a new bilateral agreement between the Canadian and German governments to establish a Transatlantic Canada-Germany supply corridor for hydrogen.

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Decarbonizing fossil-based ammonia production in North America

Our latest Ammonia Project Features webinar focused on various pathways for decarbonizing fossil-based ammonia production in North America. Blake Adair from Nutrien took us on a tour of some of his organisation’s existing low-carbon ammonia production facilities. He also explained how the technology solutions already exist to drive down emissions from hydrogen production, and improve rates of carbon capture. Dr. Amgad Elgowainy from Argonne National Laboratories then presented his team’s analysis of carbon dioxide mitigation costs for ammonia production, noting that current federal incentives for CCS projects already have a material impact on project costs. With incentives in place and mature technology available, we will soon see more low-carbon ammonia production projects emerge in North America.

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Canada: ammonia exports from British Columbia & Nova Scotia

EverWind Fuels will develop a regional hydrogen hub in Point Tupper, Nova Scotia (Atlantic coast of Canada) after acquiring existing storage terminal facilities at the deepwater port. The existing infrastructure will be expanded to include renewable hydrogen and ammonia production, with huge potential for onshore and offshore wind power.

On the Pacific coast, Trigon has announced a new focus on zero-carbon energy exports, particularly ammonia. Trigon’s Prince Rupert, British Columbia export terminal has traditionally been a major coal port, but existing infrastructure will be leveraged as Trigon shifts focus from fossil commodities to low and zero-carbon exports.