Canada Infrastructure Bank is investing $337 million in hydrogen production facilities and refuelling stations in B.C. and Alberta.

The federally owned lender announced Friday that it will make the investment through a loan to North Vancouver, B.C.-based hydrogen producer and distributor HTEC, which is developing the projects.

The funds will finance the development of three new hydrogen production facilities in the B.C. communities of Burnaby, Nanaimo and Prince George and a liquefaction facility in North Vancouver. The investment will also finance the construction of up to 20 refuelling stations in B.C. and Alberta, more than doubling the number of refuelling stations now in place in Canada. As part of the investment, 14 of the 20 stations will be able to refuel 300 heavy-duty vehicles per day.

HTEC will build and operate the projects, which are expected to create 280 full-time jobs tied to construction and operations.

The CIB contribution will contribute to the implementation of HTEC’s full-service, sustainable fuel supply chain, named H2 Gateway, which focused on reducing emissions in the transportation sector, said the bank in a news release. H2 Gateway is an estimated $900-million investment program dedicated to the development of hydrogen transportation ecosystems that drive adoption of the fuel in targeted regional hubs.

Colin Armstrong, HTEC’s president and CEO, said the vision for H2 Gateway is now being realized. As a result of CIB’s investment, HTEC is now poised to establish highly sustainable hydrogen ecosystems that will drive the adoption of zero-emission transportation and support larger regional hydrogen hubs, he added.

“An investment of this magnitude signals confidence in HTEC and the network of dedicated partners delivering safe, low-carbon energy solutions, putting Canada on the map,” said Armstrong.

CIB said the financing will help accelerate the implementation of hydrogen technology and help mitigate uncertainty in the rate and pace of hydrogen adoption. The uncertainty has been a historical barrier to private investment in sustainable fuel production and infrastructure.

“By investing in hydrogen production, distribution, and refuelling infrastructure, we are accelerating the deployment of this sustainable fuel solution,” said Ehren Cory, the bank’s CEO. “New partnerships in this emerging sector will help increase domestic hydrogen production and ensure Canada is economically competitive in a decarbonizing world.”

Image: CNW Group/Canada Infrastructure Bank