Enbridge CEO says federal cleantech incentives will boost investment in Canada

CALGARY – New incentives for clean energy development in the federal government’s fall fiscal update will make a real difference in helping to attract investment capital to Canada, the chief executive of ‘Enbridge Inc.

During a conference call to discuss the pipeline giant’s third-quarter financial results, CEO Al Monaco said the Calgary-based company was encouraged by the measures announced Thursday by Finance Minister Chrystia Freeland.

In an effort to encourage the growth of low-carbon energy alternatives, as well as to maintain Canada’s competitiveness with the United States and its massive Inflation Reduction Act, the federal government is creating two new federal tax credits for clean technology and low-emission hydrogen production.

“I think it’s recognized from what I read last night that you have to be competitive. And I think, as I said, that will try to bridge the gap so that we get our share in Canada of the investment dollars,” Monaco said.

“My early reading of this is that it will be attractive for businesses here, both in terms of attracting capital to Canada, but also for us in terms of our business in general.”

The budget update says details of the promised tax credit for clean hydrogen production and new investment measures to spur growth in electric vehicle and battery manufacturing are still being worked out.

There are more details on the new tax credit for investments in clean electricity generation, energy storage systems and low-carbon heating equipment, including that it will cost almost 6 $.7 billion over the next five years and will launch on Federal Budget Day 2023.

It will also be Canada’s first more lucrative tax credit for companies that pay a fair wage and have training programs for young workers.

Enbridge, which transports about 30% of the crude oil produced in North America and transports nearly 20% of the natural gas consumed in the United States, is committed to achieving net-zero greenhouse gas emissions by 2050.

The company has a growing offshore wind portfolio and has also proposed low carbon projects using new technologies such as hydrogen, renewable natural gas and carbon capture and storage.

On Friday, Enbridge said it earned $1.28 billion in its most recent quarter, up from $682 million in the same quarter last year.

The pipeline operator said earnings were 63 cents per share for the quarter ended Sept. 30, up from 34 cents per share a year ago.

Operating revenue hit $11.57 billion in the company’s third quarter, up from $11.47 billion in 2021.

On an adjusted basis, Enbridge said it earned 67 cents per share in its most recent quarter, up from adjusted earnings of 59 cents per share in the same quarter last year.

Analysts on average had expected adjusted earnings of 64 cents per share, according to financial markets data firm Refinitiv.

This report from The Canadian Press was first published on November 4, 2022.

Companies in this story: (TSX:ENB)


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