Greg McLean Urges Federal Support for Waste Heat to Power in Clean Tech Tax Framework
Greg McLean, Member of Parliament for Calgary Centre rose in the House of Commons on Thursday, October 30, calling on the federal government to expand the definition of clean technologies in the Income Tax Act to include the conversion of residual industrial heat into electricity, known as Waste Heat to Power (WHP). This inclusion would make WHP eligible for the same 30% investment tax credit currently granted for the purchase of equipment used to generate electricity from wind, solar, and geothermal sources which are already recognized as clean energy technologies under the Act.
“Every day, heat generated by industries such as metals, chemicals, and cement escapes unused. That’s zero-emission electricity. Enough to power hundreds of thousands of homes,” McLean stated in the House.
Wasted energy, a major potential ignored by government
According to the Canada Energy Regulator’s 2023 report, the industrial sector accounted for 54% of the country’s final energy demand in 2021, making it by far the largest energy consumer in the country. Yet, more than a third of that energy is lost as residual heat released into the atmosphere. Proven technologies exist to recover this heat and convert it into electricity, but they remain largely absent from Canada’s energy landscape.
This is a low-cost, zero-emission and low-risk source of electricity that can be deployed at scale across the country. It is precisely the kind of solution the Minister of Environment has called for to position Canada as an “energy superpower”. The production of power from heat currently being wasted equates to increased power that is practically emissions free. The exclusion of this type of power from Clean Energy Incentives reflects prejudice against industrial heat – including in sectors like steel, chemicals, and cement.
“This government decided to exclude waste heat from clean technology incentives. This misguided mindset must be corrected. Now,” McLean asserted.
International examples to follow
While Canada remains deliberately inactive, other jurisdictions have already taken concrete steps to support residual heat recovery. In the United States, a 30% federal tax credit has been available since fall 2021 for WHP projects. Less than two years later, a scientific article identified 63 operational industrial WHP projects, totaling 812 megawatts of installed capacity. In France, a dedicated fund for residual heat recovery has existed since 2015, offering financial support ranging from 30% to 50%, depending on company size.
A call for economic and energy leadership
Large-scale WHP deployment is entirely feasible but requires significant upfront investment. For many companies, this means stepping beyond their core business, taking on financial risks, and facing return-on-investment timelines that may not align with market expectations. In this context, government support is not only logical. It is essential to level the playing field and remove investment barriers that will economically accelerate the adoption of sustainable energy solutions.
“Conservatives will do what this government refuses to do: support energy solutions that are efficient, proven, and economically viable,” McLean concluded.
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