Cleantech Tax Credit

Hon. Jonathan Wilkinson, P.C., M.P.
Natural Resources Canada,
Ottawa, Ontario

Dear Minister,

It was a pleasure to meet with you at the Roundtable, at the Fall Economic Statement and Cleantech Tax Credit information session in Vancouver yesterday.

Hydra recognizes the efforts NRCan is making in the effort to support fleets in transitioning to hydrogen and battery electric heavy duty vehicles as part of Canada’s emissions reduction strategy. As mentioned at the meeting, having an additional category to accommodate Low Emissions Vehicles (LEVs) can help accelerate vehicles to lower emission options in addition to ZEVs. LEVs provide a technology pathway to reduce emissions and diesel fuel use with lower incremental costs and risks to fleets, while the industry transitions to ZEV options in the coming years.

Hydrogen Internal Combustion Engine (HICE) technologies, such as Hydra’s dual fuel hydrogen-diesel retrofit system can deliver significant emissions reductions today (i.e., 40% -50%), while offering the same performance as a diesel vehicle. A recent study by Alberta’s Transition Accelerator cites that 2 Hydrogen- diesel dual fuel powered vehicles (40/60% H2, diesel) can provide roughly the same emissions reductions benefits as a hydrogen electric fuel cell vehicle (HFCE), at a fraction of the cost until at least 2030.

It is crucial that incentives and tax credits also apply to LEVs to reduce emissions from heavy duty class 8 vehicles for which there are few commercially available options to diesel that offer the same performance for hauling heavy loads in Canada’s unique geography and climate.

We welcome further discussion with you and your team on the benefits of creating an additional category for LEVs, as part of the suite of technology options, that are eligible for funding incentives or tax credits. This could be accomplished by providing funding and or credits based on carbon reductions, cost or other performance based metrics. Inclusion in mandates and regulatory language, at least during an interim period from today to 2030, for vehicles with demanding duty cycles for which there are few alternatives to diesel, would be a positive step to rapidly reducing emissions. This approach could transition a greater number of vehicles to lower emission technologies and build out hydrogen fuelling infrastructure at a faster pace.

Thank you for your consideration.

Sincerely,

Laura Guzman
Director, Government Affairs and Partnerships