BC Government Expands Motor Fuel Tax Exemption to Include Hydrogen Internal Combustion Engines

Yesterday the BC Government announced the 2022 budget and we are so pleased to see that they’ve expanded the Motor fuel tax exemption to be inclusive of all hydrogen applications in transportation. Effective immediately the MFT exemption now includes hydrogen in internal combustion engines. This will encourage the use and development of hydrogen applications and allow more business to adopt HICE technology.

British Columbia has been a global leader in the development of hydrogen technologies. In the past this was focused on hydrogen fuel cells, but with the increase of other applications like HICE it is encouraging to see legislation that supports technology neutrality. To reach the ambitious goals set provincially and federally will take a wide range of solutions. By creating this level playing field transition technologies such as Hydra’s hydrogen-diesel co-combustion retrofit can be adapted by existing fleets at a quicker pace.

In BC the trucking industry is the lead contributor to emissions from road transportation, increasing by 13.5% since 2007. Hydra’s technology can be installed in existing heavy-duty vehicles (HDVs) with limited down time and at no cost to fleet operators. Reducing operating costs for fleets that choose hydrogen as a fuel will help our trucking sector grow and create jobs in the Province.

We are also excited to see the 2022 Budget also includes investing $5 million over two years to continue the Heavy-Duty Vehicle Efficiency Program, which partners with industry to educate drivers and install fuel-efficiency measures in heavy-duty vehicles. 

By updating the MFT exemption for hydrogen, the BC government is signalling that all viable clean energy technology solutions are welcome as ways to help the province achieve our CleanBC plan goals, including hydrogen fuel cells, hydrogen combustion or any other low carbon hydrogen technologies that may emerge in the future.