EXAMEN DES OBSTACLES AUX PROJETS INÉDITS DE COMBUSTIBLES PROPRES AU CANADA

The report analyzes the viability of first-of-a-kind clean fuel projects in Canada, finding that most are currently unprofitable without public support. It distinguishes between standard market risks, which investors can manage, and systemic failures—such as policy uncertainty, infrastructure deficits, and regulatory delays—that require government action. Through financial modeling of five project archetypes, the report highlights that only blue ammonia in Alberta shows consistent viability, while others struggle with high costs and technological immaturity. It emphasizes the need for Canada to rapidly implement a permissive policy environment to compete with the United States' Inflation Reduction Act and to foster equitable partnerships with Indigenous communities.

• Financial modeling of five first-of-a-kind clean fuel project archetypes reveals that four are likely to be unprofitable without additional public financial support; only blue ammonia produced in Alberta showed positive net present value in over two-thirds of simulations.
• Clean fuels, specifically low-carbon hydrogen and advanced biofuels, are critical for decarbonizing hard-to-abate sectors like aviation, international shipping, and heavy industry, where they may be the only viable or most affordable option.
• Canada faces a significant shortage of skilled labor for the clean energy sector, with a potential deficit of 27,000 people by 2025 in a net-zero scenario and up to 400,000 new 'advanced' green skill jobs needed by 2050.
• Policy uncertainty and the lack of tangible financial incentives make Canadian projects less attractive compared to the United States, where the Inflation Reduction Act has already triggered $28 billion in private investment.
• Bureaucratic inefficiency and slow permitting processes are major barriers; construction permit approval in Canada takes an average of 250 days, which is three times longer than in the United States.
• Infrastructure deficits, particularly in rural, remote, and Northern communities, increase costs and uncertainty, deterring investors from launching clean fuel projects.
• Technological immaturity and the high cost of scaling emerging technologies create a market failure, as private developers are not compensated for the 'learning-by-doing' benefits that accrue to society.
• Establishing equitable partnerships with Indigenous peoples is essential for economic success and reconciliation, but systemic barriers like the Indian Act prevent Indigenous governments from using land as collateral for loans.

APA

Forman, J. (2023). EXAMEN DES OBSTACLES AUX PROJETS INÉDITS DE COMBUSTIBLES PROPRES AU CANADA. Canadian Climate Institute. https://institutclimatique.ca/wp-content/uploads/2023/03/examen-obstacles-projets-inedits-combustibles-propres-canada.pdf

Chicago

Forman, Jared. EXAMEN DES OBSTACLES AUX PROJETS INÉDITS DE COMBUSTIBLES PROPRES AU CANADA. Canadian Climate Institute, 2023. https://institutclimatique.ca/wp-content/uploads/2023/03/examen-obstacles-projets-inedits-combustibles-propres-canada.pdf.

Wikipedia

{{cite report |last1=Forman |first1=Jared |title=EXAMEN DES OBSTACLES AUX PROJETS INÉDITS DE COMBUSTIBLES PROPRES AU CANADA |publisher=Canadian Climate Institute |date=March 2023 |url=https://institutclimatique.ca/wp-content/uploads/2023/03/examen-obstacles-projets-inedits-combustibles-propres-canada.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{forman2023examen, author = {Forman, Jared}, title = {{EXAMEN DES OBSTACLES AUX PROJETS INÉDITS DE COMBUSTIBLES PROPRES AU CANADA}}, institution = {Canadian Climate Institute}, year = {2023}, month = mar, url = {https://institutclimatique.ca/wp-content/uploads/2023/03/examen-obstacles-projets-inedits-combustibles-propres-canada.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }