plant. The IRA is “populated with tax credits for producing something desirable, as opposed to in Canada where you’re punished for consuming and emitting,” he added. “It’s a stark difference.”Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.
Earlier this month, Entropy announced its first memorandum of understanding in California with independent oil and gas producer California Resources Corp. on a project to capture and sequester around 400,000 tonnes per year of CO2 emissions. Entropy’s Canadian investments, meanwhile, are largely on hold until Ottawa can provide assurance that large investments in emissions-abating projects won’t be money losers.
“If Canada wants to generate economic growth, we think a major part of its strategy should be to attract investment dollars in major decarbonization projects,” Bernstein said in an interview. “Doing that is going to position Canada really effectively in this global arms race toward decarbonizing economies.”Photo by Jim Wells/Postmedia files
However, as it currently stands, a carbon capture plant in, say, Texas, is set to be around 29 to 40 per cent more profitable than that same plant in Alberta, due to “generous” U.S. incentives that far exceed Canadian ones, Bernstein said. Bernstein and Allan found that Canada is behind the U.S. when it comes to subsidies for both processes. The gap between U.S. and Canadian green and blue hydrogen subsidies is so stark, in fact, that it is unlikely Europe would buy hydrogen from Canada. They’ll most likely buy from the U.S., the report said.Article contentThere’s a debate among fiscal experts about whether it would be wise to try to match the U.S.