The Canada Infrastructure Bank on Wednesday launched its $500 million initiative to boost hydrogen charging and refueling infrastructure for zero-emission vehicles.
First announced this spring in Canada’s 2030 Emissions Reduction Plan and federal budget, the initiative will support Ottawa’s goal to accelerate the adoption of zero-emission vehicles and the addition of 50,000 new charging stations and hydrogen refueling stations in Canada.
The bank says it will provide the private sector with structured financing to share the risk of using the kiosks and stations by matching financing repayment to usage levels. If utilization does not reach certain agreed levels, required repayments will be proportionally lower, and if utilization levels exceed expectations, bank performance will increase proportionately.
According to the bank, this financing structure aims to address the uncertainty surrounding the adoption rates of zero-emission vehicles faced by developers and investors.
One of the biggest barriers to adopting zero-emission vehicles in Canada is the lack of public charging and refueling infrastructure. In August 2022, there were approximately 22,000 public charging stations and six hydrogen refueling stations installed in the country.
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