The Canadian federal government has announced CA$1.7M investment in 14 innovative projects to promote transition of marine shipping to green ship technologies. The Tech Factor dives deeper into the development.
Canada government’s Green Shipping Corridor Program has granted CA$1.7M to 14 projects working on transition to green ship technologies. Canada plans to decrease emissions by 40–45% by 2030, to reach net-zero emissions by 2050. Its net-zero commitment is indeed codified in law by the ‘Canadian Net-Zero Emissions Accountability Act’, passed in June 2021. Now, transportation accounts for 25% of greenhouse gas emissions in Canada, making it the country’s second-largest emissions source. Marine shipping is part of it, and emissions from maritime shipping roughly make up nearly 3% of all emissions worldwide.
Against this backdrop, the development is important. In fact, these projects fall under the federal government’s Green Shipping Corridor Program’s Clean Vessel Demonstration stream. The office of the Minister of Transport, Pablo Rodriguez, made the announcement about this grant funding. The grant aims to increase the knowledge and ability of Canada’s maritime industry to convert ships to low-carbon or zero-emission fuel propulsion systems.
“Canadians across the country rely on marine shipping to deliver products we use every day in an affordable, safe, environmentally friendly, and efficient way. The projects will grow a strong economy and get people the goods they need, while protecting our environment.”
The Honourable Pablo Rodriguez, Minister of Transport
The release further highlighted that the federal government believes a net-zero economy will continue to give Canadians opportunities and jobs. Further, decarbonizing the marine sector was a major component of the government’s climate action plan. The alarm bells have already been ringing about Canada’s climate tech sector risking getting left behind in global order. At the same time, government had announced cleantech tax credits for investments in clean electricity, manufacturing, and hydrogen last year.
Green Shipping Corridor Program to grant nearly CA$150M over 4-5 years
Transport Canada hopes that programs like Green Shipping Corridor Program will help in cooperation with environmental stakeholders, businesses, and also Indigenous groups towards net-zero. It offers financial support to initiatives that help decarbonize the marine industry, as well as create environmentally friendly shipping lanes. The St. Lawrence Seaway, Canada’s East and West Coasts, and the Great Lakes are especially its focal points.
The eligible projects for Green Shipping Corridor Program have to help achieve one or more of the following:
- Remove obstacles to the installation of emission-reducing machinery and infrastructure
- Encouraging industry-led collaborations and financial contributions to accelerate the implementation of greenhouse gas emission-reduction technologies and infrastructure
- De-risk investments to advance technology-readiness for next-generation low-carbon and zero-emission ship technology and marine fuels for the domestic fleet
- Build capacity among Canadian vessel owners and operators in terms of their capacity to recognize, organize, and integrate these technologies into their vessel operations
The program distributes grants through two streams: Clean Ports Stream and Clean Vessel Demonstration Stream. Firstly, the Clean Ports Stream focuses on supporting ports through onshore equipment and infrastructure financing. It plans to distribute CA$127.2M in grants over four years between 2024/25 to 2027/28. Secondly, the Clean Vessel Demonstration Stream focuses on improving the cutting-edge low- and zero-emission vessel technologies’ preparedness. It aims to distribute CA$22.5M in grants over five years between 2023/24 to 2027/28.
Selected projects studying a variety of green ship technologies
The goal of the projects is to research, evaluate, and also test near-zero/zero-fuel propulsion technologies for marine shipping. Nearly all these projects on green ship technologies have secured a standard CA$125,000 in grant each, except minor reduction for three of them.
Algoma Central Corporation has secured grants for five of its projects. Their projects span across wind propulsion, methanol-fuels, shore power, biofuels, and fuel storage. FedNav Ltd has obtained grant funding for three of its projects. They are exploring fuel cells, battery based energy storage, and wind propulsion for marine shipping.
In addition to them, CSL Group Inc., Mersey Seafoods Limited, Miawpukek Horizon Corp., Oceanex, Seaspan Ferries, and Transport Desgagnés Inc. have been awarded grants for one project each. Their projects span studies on laker design, low/zero carbon fuels, zero-emission vessels, shore electrical power, tug retrofitting, and battery ESS.
It’s worth noting that the government last year invested in Stromcore Energy for design and manufacturing of intelligent lithium-ion batteries. On a related note, green technologies in British Columbia have also received PacifiCan grants and CICE funding.
