2023 Budget supports growth for Canada’s marine renewable sector
As opportunities and interest in Canada’s marine renewable energy sector increase, the Government of Canada’s 2023 budget outlines measures that will help support and drive project development and growth of our offshore wind, tidal, wave, and river current energy resources, as well as green hydrogen. The budget, released yesterday, included several measures that Marine Renewables Canada has been advocating for:
- A refundable 15% Clean Electricity Investment Tax Credit for eligible investments in wind, wave, and tidal, as well as other clean electricity technologies.
- A refundable 30% Clean Manufacturing Investment Tax Credit for new machinery and equipment used to manufacture or process key clean technologies, and extract, process, or recycle key critical minerals, including renewable energy equipment.
- A refundable Clean Hydrogen Investment Tax Credit up to 40% for eligible clean hydrogen project costs.
- $3.0 billion for clean electricity projects including the recto recapitalization of the Smart Renewables and Electrification Pathway and investment in science-based activities to help capitalize on Canada’s offshore wind potential, particularly off the coasts of Nova Scotia and Newfoundland and Labrador.
- $20 billion from the Canada Infrastructure Bank to support clean electricity investments.
“We welcome the federal government’s 2023 Budget – it considers our recommendations and implements measures that will accelerate project activity in the marine renewable energy sector,” said Elisa Obermann, executive director of Marine Renewables Canada. “The investment tax credits in conjunction with new funding will play a significant role in catalyzing Canada’s first offshore wind to green hydrogen projects, as well as spurring development of other marine renewable project across the country. We’ve watched federal funding be a critical catalyst for the US offshore wind market and are encouraged to see the Government of Canada taking real action to support the industry.”
Marine renewable energy development is increasing globally with many countries establishing significant incentives and supportive regulatory regimes to attract investment. The measures announced in the 2023 budget will help ensure that Canada is competitive in the growing global market.
About Marine Renewables Canada
Marine Renewables Canada is the national association for tidal, offshore wind, wave and river current energy, representing technology and project developers, utilities, researchers, and the energy and marine supply chain.
Since 2004, the association has worked to build the sector by advocating for supportive policies, identifying domestic and international business development opportunities for its members, facilitating collaboration amongst its membership and broader ecosystem, providing education and outreach, and disseminating market intelligence. As part of its focus on developing the sector, Marine Renewables Canada is active in catalyzing opportunities for how marine renewable energy can contribute to achieving net-zero goals through production of green fuels such as hydrogen, as well as displacement of diesel in remote communities and marine industries.
More at www.marinerenewables.ca
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Marine Renewables Canada