Cost dynamics and green premium

This week on the podcast, our guest is Brandon Moffatt, Chief Development Officer at StormFisher Hydrogen. StormFisher Hydrogen develops projects that repurpose energy, water, and power, with a focus on green hydrogen and e-fuels across the North American market. The company is currently advancing a low-carbon methanol project in Varennes, Quebec. 

The conversation begins with an overview of green hydrogen–derived products, including e-methane, e-methanol, and green ammonia. Brandon explains why e-methanol is emerging as a leading end-use for green-hydrogen-derived fuels, particularly for marine shipping and aviation. 

The discussion then turns to Canada’s competitive advantages in producing e-fuels, including access to low-carbon grid electricity in Quebec, Manitoba, and British Columbia, as well as the Canadian Investment Tax Credits (ITCs). With the United States rolling back support for green hydrogen in the One Big Beautiful Bill Act (OBBBA) last summer, Brandon notes that Canada currently holds a policy advantage in North America. However, global competition remains strong, particularly from India, China, and the Middle East, where cost structures are advantaged. 

For Canada to remain globally competitive in green hydrogen-derived products, Brandon outlines several changes he believes are needed to Canada’s existing ITC framework. These include:

• Allowing access to the full green hydrogen ITC when grid power is more than 90% non-emitting 
• Extending eligibility to downstream equipment, including e-methanol and sustainable aviation fuel (SAF) production, consistent with how ammonia is treated  
• Allowing the use of carbon dioxide in fuel production to qualify for the carbon capture, utilization, and storage (CCUS) ITC

The episode concludes with a deeper dive into the Varennes project, including the potential for local job creation and the anticipated timing for a final investment decision and first production. 

Content referenced in this podcast:

• S&P Canadian Electric Car Insights to Q3 2025 (Dec 2025) 
• StormFisher Hydrogen’s website 
• Learn more about StormFisher’s low-carbon methanol project in Varennes, Quebec 

Note, the ARC Energy Funds are an investor in StormFisher Hydrogen. Please review our disclaimer at: https://www.arcenergyinstitute.com/disclaimer/ 

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LinkedIn: @ARC Energy Research Institute 

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