Hydrogen projects on ice

MARKETS

Hydrogen projects on ice

B.C.’s plans to become a hydrogen heavyweight are in jeopardy. 

What happened: At least seven large-scale hydrogen projects have been paused according to reports from CBC. The most public was a 140,000 t/yr project by Australia’s Fortescue that was paused late last year because it was no longer “commercially viable” - largely due to the high cost of procuring enough electricity.

What’s driving the cancellations: A major bottleneck is access to electricity. The province is facing unprecedented demand for electricity from industrial projects, alongside population growth and electrification. 

The sector also lacks demand due to the high cost of adopting hydrogen technologies and hydrogen fuel, while safety risks from transporting hydrogen by train (often as ammonia) and consultation with First Nations along transport corridors present more uncertainty.

Why it matters: Low-carbon hydrogen is a key part of B.C.’s climate and economic strategy, and could decarbonize industries where electrification isn’t viable yet like shipping, steel, and chemical production. 

B.C. is hoping to tap into its hydroelectric reserves for green hydrogen (made by splitting water using clean electricity) and its natural gas industry for blue hydrogen (made by splitting hydrogen from natural gas using steam and capturing carbon emissions). 

The bottom line: These project pauses aren’t unique - the global clean hydrogen market has struggled with high prices and infrastructure bottlenecks.

Focusing on high-impact opportunities like industry and shipping could help overcome these hurdles and create a critical first market, but other uses like transport and home heating will have a hard time competing with electrification. 

💡 Go deeper: Read our piece on HTEC’s H2 Gateway project and where hydrogen fits into the energy transition.

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CLIMATE CAPITAL

🏍️ Damon Motors (Vancouver, BC) closed a $16.5 million public offering for its high performance electric motorcycles. The funding will be used to accelerate growth and revenue generation. Damon plans to focus on safety systems, electrification, and developing an asset-light business model.

MILESTONES & PRODUCT

⛏️ Rock Tech Lithium received a special designation as a “strategic project” under the EU’s Critical Raw Materials Act for its lithium conversion project in Germany. The project will battery-grade lithium hydroxide to supply over 500,000 EVs per year.

🏅 pH7 Technologies and Green Manganese Technologies took home venture of the year awards at Foresight’s BC Cleantech Awards.

💧 Next Hydrogen, an electrolyzer developer for hydrogen production, partnered with China’s Sungrow Hydrogen to manufacture its electrolyzers in China.

🏅 Five Canadian startups landed on TIME’s World’s Top Cleantech Companies list, including Svante (carbon capture), eLeapPower (EV charging components), Li-Cycle (battery recycling) and Eavor (geothermal).

🔋 Siemens Canada will set up a new $150 million battery research and development center in Ontario to accelerate EV battery production and efficiency.

DEEP DIVE

The future of home energy with Marc-André Forget, CEO at dcbel

I sat down with dcbel CEO Marc-André Forget on The Climate Cycle podcast to talk the future of home energy, how dcbel is putting power back in homeowners’ hands, and their recent $55M investment led by the Canada Growth Fund.

Listen on Apple, Spotify or wherever you get your podcasts!

Can you give a quick intro to dcbel and the problem you’re solving?

“dcbel’s mission is to deliver energy so you can live a life without compromise. We’ve introduced our first technology called the dcbel Ara. It's a home energy station that blends solar energy, bi-directional and DC fast charging, energy storage, and AI that learns how you use energy so you can live a life without compromise.” 

How has the home energy landscape changed? 

"Solar panels are massively disruptive. For the first time in a century, people can generate their own energy without relying on monopolies or large corporations. Then we've got electric vehicles where my home becomes my gas station. Energy is the largest market in the world, and it is being disrupted. Home is the battleground right now.”

What makes dcbel different from other solutions? 

"The best analogy is the iPhone. Prior to 2007, we had separate GPS devices, phones, MP3 players, cameras - all serving single purposes, not integrated. The iPhone came in and integrated many different hardware products in a single package. The dcbel is exactly that. We combine solar technology, battery charging, EV charging, and home energy management - all of this combined into a single box. It's the second generation of existing products combined into something smarter."

What are some of the biggest lessons from getting units out in the field?

“Hardware is hard. You need to be very disciplined when you approach a hardware product. A dcbel Ara has 5,700 parts, 600 of which are distinct. So you need to make sure that everything is in place and you create this product with a level of quality that you trust and that your customer is going to be happy with before shipping.”

How did you approach finding the right investors for your company and ultimately landing with the Canada Growth Fund?

“When it comes to selecting investors, you need ones that are aligned with your journey. We're not the kind of startup that you just pump and dump. Because of the level of investment we have to make with hardware and software, and to create trust with customers, we need to show them that we're still going to be around in 10 years. Therefore, you need to have investors with the capability to follow you for the next decade and I think this is what we found with the Canada Growth Fund.” 

Edited for length & clarity. Check out the full episode here.

IN THE NEWS

Ontario doubles-down on hydrogen: Ontario is launching a new round of its Hydrogen Innovation Fund, investing $30 million to expand the industry. The fund will support projects that directly benefit the electricity system (e.g. energy storage, peaking generation) but also a second stream for transportation, manufacturing and heavy industry. [Ontario]

Tesla cut off from EV rebates: Teslas will be excluded from several provincial EV rebate programs, as provinces respond to U.S. tariffs and Elon Musk’s role in the Trump regime. The changes follow protests at Tesla dealerships across Canada and the U.S. and accusations of potentially gaming rebates. [Electric Autonomy]

TMC asks Trump for deep-sea mining approval: The Vancouver-based exploration company submitted deep-sea mining permits to the U.S. last week, citing a lack of progress from the UN’s International Seabed Authority. The White House is considering an executive order to fast-track permitting in international waters. [Reuters]

Provinces plan to roll back “polluter pays” system: Saskatchewan plans to pause its industrial carbon pricing program, while Alberta is considering scrapping or overhauling its own. The premiers are taking their cue from Pierre Poilievre who promised to end the program if elected. However, about 74% of Canadians support the “polluter pays” principle that the system is built on. [The Narwhal] 

Could Canada revisit Chinese EVs? China is testing the waters on Canada’s trade policies by suggesting BYD could come to Canada. Canada previously applied a 100% tariff on Chinese-made EVs to align with the U.S. With that relationship up-ended, investment in local manufacturing from BYD could be more appealing. However, national security and data access is still a concern. [The Logic]

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COMMUNITY

🚀 MICA Call for Proposals: MICA is looking to support the development of innovative mining solutions, funding up to 30% of eligible project costs. Apply by April 4th.

➡️ Discover more opportunities.

🗓️ Carbon Catalyst: Join sustainability leaders across industries to learn about carbon dioxide removal (CDR) – a vital bridge to the clean energy economy and a tremendous opportunity for corporate sustainability action! Calgary, April 30th.

➡️ Discover more climate events.

💻️ e-Zinc is hiring a Director, Market Development to manage customer relationships, drive go-to-market strategies, and secure funding opportunities for e-Zinc's innovative energy storage technology.

➡️ Find more open roles.