Under a Memorandum of Understanding (MOU) with Skeena Industrial Development Park (SIDP), the two companies will construct the Skeena Clean Hydrogen Hub.

It is expected to meet “growing local and global demand for clean fuels as part of the long-term transition to zero-carbon transport and industrial processes.” From the hydrogen produced, the project could create downstream products such as clean ammonia, e-fuels or sustainable aviation fuels (SAFs).

“The Skeena Clean Hydrogen Hub is a critical and first element of the clean energy cluster we are developing in northern British Columbia,” explained Ayaz Khokhar, President and CEO of Source3X.

“We expect long-term exponential growth in demand for green hydrogen and its downstream products not only globally, but also in Canada,” added Khokhar.

The company’s clean energy cluster includes a GW-scale clean electricity generation from wind energy to meet the province’s electricity demand, along with a long-term increase in hydrogen production at various sites.

Michael Pucci, Manager of the Skeena Industrial Development Park, said, “This industry has a lot of room for growth and, as hydrogen is considered a clean source of energy, leads to decarbonisation in multiple other industries across our region.”

Canada’s clean hydrogen investment tax credits were passed into law as part of the country’s budget in June (2024), offering between 15 and 40% of investments for eligible hydrogen projects.

Read more: Canada’s clean hydrogen investment tax credits passed into law

The CAD $5.6bn Clean Hydrogen Investment Tax Credit (ITC) is hoped to supercharge Canada’s hydrogen developments.

In January (2024), H2 View revealed that Canada could steal US green hydrogen investments. Canadian support measures could potentially outperform the US legislation, providing a “more conducive environment for hydrogen investment and development,” according to Ivette Vera-Perez, CEO of the CHFCA.

Read more: Analysis: Could Canda be about to steal US green hydrogen investments