Question

Alberta’s this year due the COVID-19 pandemic. Is there a glimmer in that province's economic outlook? What are your comments on clean energy sector?

Do you know any hydrogen and fuel cell solution providers in Canada? Are they listing companies? Please list their stock this week?

Answer 1

The following points indicates the economic outlook as presented as per Fiscal Plan in Budget around February, 2020. During this time, Covid had not unleashed its effect on Alberts and in Canada there were handful of cases only. Alberta’s economy was expected to regain its footing in 2020 after a period of weakness in 2019 but everything went downhill.

BEFORE COVID

• Real gross domestic product (GDP), a common measure of economic activity, was forecasted to grow by the average of 2.8% from 2021 to 2023 and surpass pre‑recession levels.
• Economic outlook from 2020-23 was stated and several aspects of the economy were expected to contribute to the turnaround in 2020 such as an increase in exports, led by a rebound in oil production, continued growth in investment outside oil and gas extraction, a rebound in oil and gas investment, a rise in consumer spending, supported by employment gains and a growing population
• The Job Creation Tax Cut, which reduces Alberta’s corporate income tax rate to 8% by 2022, will make Alberta one of the most attractive investment destinations in North America.
• A more competitive tax regime, along with additional pipeline access, will help drive business investment and employment gains.
• This is expected to attract more people to the province, boosting consumer spending and housing activity.

IMPLICATIONS OF COVID:

• Canada’s economy will contract by 25 per cent over the second quarter, with Alberta hardest hit by the COVID-19 pandemic downturn, the steepest quarterly decline in economic output on record.
• Alberta’s economy is expected to contract by 5.8 per cent in 2020, the worst annual decline on record due to COVID-19 and the severe contraction in oil prices resulting from the steep drop in global demand (due to the pandemic) and the price war between Russia and Saudi Arabia.
• Physical distancing requirements as well as the closure of non-essential businesses have brought a large portion of the economy to a standstill and every province has fallen into recession.
• Though forecast expects that the downturn will be short-lived and growth will resume in the second half of the year, assuming businesses slowly reopen over the spring and summer, with Alberta’s economy poised to rebound with 6.1 per cent growth in 2021

Comment on Clean energy and renewable energy sector in Canada:

Canada is a world leader in the production and use of clean energy. As of 2019, renewable energy and clean energy technologies provide about 17.3% of Canada's total primary energy supply and about 67% of its electricity production. The majority of renewable energy produced in Canada comes from hydroelectricity. It supplied 58% of total electricity production making Canada the second largest producer of hydroelectric power globally. Wind power, a fast-growing sector of the energy market, accounted for 5% of electricity production. Globally, Canada was the eighth largest producer of wind power in 2016. Canada has also built many photovoltaic power stations, being the largest in the world at the time of its construction. Over the last decade, renewable electricity generating capacity has grown at a rapid pace. This trend is expected to continue with wider deployment of renewable technologies around the globe. Other renewable energy sources, such as biomass, wind, tidal and solar, contribute to increasing this share to over 63 percent. When adding nuclear energy, over 77 percent of Canada’s electricity generation does not emit greenhouse gases. Moreover, Canada exports large quantities of electricity to the United States, which is primarily hydroelectricity with reservoir storage. As governments continue to pursue policies to spur energy innovation and encourage the deployment and integration of renewable sources of energy, Canada’s reliance on electricity produced from renewable energy sources, including, hydro, wind, solar, biomass, geothermal and marine, will continue to increase. Going forward, collaboration across jurisdictions will be necessary to ensure that Canada maintains its renewable energy advantage.

List of few LISTED AND UNLISTED hydrogen and fuel cell solution providers in Canada:

• AirScience Technologies Inc. based in Montreal, QUEBEC

• Loop Energy Inc. based in Burnaby, BRITISH COLUMBIA

• BIO-H2-GEN Inc. Research & Development based in ONTARIO

• Ballard Power Systems Inc. based in Burnaby, BRITISH COLUMBIA (LISTED COMPANY)

• Canadian Hydrogen and Fuel Cell Association (CHFCA) based in Vancouver, BRITISH COLUMBIA

• Hydrogenics Corporation based in Mississauga, ONTARIO

• MagPower Systems Inc. based in Stony Plain, BRITISH COLUMBIA

• Solarvest BioEnergy Inc. based in Summerville, PRINCE EDWARD ISLAND

• Powertech Labs, Inc. based in Surrey, BRITISH COLUMBIA

• Parker Hannifin Corp, Distributor in Thornhill, ONTARIO

• The Toro Company, Distributor in Dundalk, ONTARIO

• General Monitors, Distributor in Newmarket, ONTARIO

• Claro Inc

THIS WEEKS PRICE OF BALLARD POWER SYSTEMS LISTED COMPANY