Ahead of Tuesday’s 2024 Budget release by Finance Canada, Kanin Energy joined various stakeholders including heavy industry, climate think tanks, investors and provinces across Canada, to advocate for the inclusion of waste heat to power (WHP) technology into the Canadian investment tax credit framework. WHP technology converts rejected thermal energy from industrial processes into baseload clean power with no incremental emissions.
While we recognize the budget-conscious commitments of Finance Canada, we are very disappointed that WHP was not recognized in the Budget. This represents a significant missed opportunity to create cost-effective, near-term emissions reductions for heavy industry in Canada. Currently, several clean energy technologies, like geothermal, solar, small hydro and wind benefit from the 30% investment tax credit.
Despite strong support for climate initiatives and clean energy, Canada continues to overlook near-term and cost-effective solutions to immediately reduce emissions from the country’s key industrial base, while simultaneously strengthening international competitiveness and greening the electrical grid.
“Finance Canada has missed an incredible opportunity to support heavy industry in its goal to decarbonize. Waste heat to power is a key part of industry’s strategy to lower near-term emissions in a cost effective way” says Janice Tran, CEO of Kanin Energy. “In a period where electric grids across Canada are facing reliability concerns due to increased demand from EVs, data centers, and general electrification, it’s important to support innovative forms of reliable clean energy. Waste Heat to Power can supply 24/7 carbon-free energy to strengthen the grid, reduce the price of power and decarbonize heavy industry, all at negligible incremental costs to the budget.
Waste heat to power projects create clean energy jobs today and allows Canada’s critical heavy industries to make meaningful and immediate progress in a sector under ever-increasing criticism and scrutiny to decarbonize. WHP technology is commercially available, low-risk and is viable now.
Unfortunately, without a Canadian investment tax credit for WHP, investment in these projects will continue to be driven to the United States where the technology qualifies for up to a 50% investment tax credit.
By excluding WHP from the Clean Technology Investment Tax Credit, we hinder the competitiveness of Canada’s industrial sector and remove one of the most important tools available to industrial operators to decarbonize today.
Kanin’s team looks forward to continue to engage with the Minister of Finance on this missed opportunity.
