Commentary If an experiment works out in Germany's North Sea, Northland could pursue a green hydrogen strategy which could take advantage of the 40% tax credit. If wind turbines are for green hydrogen production only, I'm guessing all capital costs would qualify under the 40% tax credit. This in addition to regular amortization of capital costs on the books.
Certainly a game changer, as costs for hydrogen production would be significantly reduced. Not knowing what the Spring 2023 Federal budget, it's tough to say where this road will take us. Public consultations are coming on the hydrogen pathway best to follow.
Also financial support for firms willing to locate to do their production here. EV batteries, solar panel manufacturing, electrical storage systems, could all be part of the package. The whole idea of tax credits is to compete with the US for jobs, export opportunities and so forth. If for example want to ship green hydrogen/ammonia to Europe from Nova Scotia/Newfoundland (need to build shipping infrastructure, etc), the extra costs could be covered by the tax incentives.
The Federal Gov't will have to get the provinces involved as energy is under provincial jurisdiction.
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Floating wind-farms will be more common as deeper waters are encountered. This option for Canada I don't know much about, but an option opens up to stay clear from ecologically sensitive waterways. In this case Hecate Strait. This option was always open to build a wind-farm but not necessarily in Hecate Strait. Cost was a major factor. With tax credits, all ideas could be reviewed in a different light when hydrogen production is being considered.
With hydrogen production, it doesn't require an area of the best winds. Wind consistency is less important than if wind turbines had to supply the electrical grid for BC Hydro. The issues of back-back power by BC Hydro would not figure prominent either.
From another post on Stockhouse--
In offshore wind, Northland's management indicated that its Nordsee Two offshore wind development was pre-selected to receive a grant of €95 million to demonstrate the technical and commercial feasibility of producing hydrogen at sea.