Feds approved more than $4.4 million in climate subsidies for one of Canada’s most profitable companies: records
The federal government last year approved more than $4.4 million in climate grants for the Canadian National Railway Company (CN), one of Canada’s largest rail companies and most profitable companies, data shows.
The Department of Natural Resources revealed in a Ministry investigation filed with the House of Commons on June 19 that it awarded CN$4,425,000 in federal funding on November 28, 2022 for the installation of more than 60 electric vehicle (EV) charging stations in Ontario, Quebec and British Columbia, as first reported by Blacklock’s Reporter.
“The purpose of this agreement is to increase awareness, availability and use of low carbon vehicles and fuels in Canada by supporting the installation of 12 electric vehicle chargers in Quebec, 42 in Ontario and 8 in British Columbia,” Natural Resources Canada (NRCan) wrote in the study.
It added that funding to CN was released under the federal “Contributions to Support Clean Fuels, Transportation and Industry” program.
Ottawa say the amplified climate of Canada planannounced in December 2020, was reaffirmed in the 2021 budget with a $1.5 billion investment over five years to establish a Clean Fuels Fund intended to “find the capital investment required to build new clean fuel production facilities building or expanding fuel (including facility refurbishments)”, in addition to other support and resources made available to achieve the goal of net zero emissions by 2050.
Information in the inquiry was released in response to an order document question submitted by Conservative MP Warren Steinley May 2. Steinley asked for details “regarding repayable loans and repayable contributions in excess of $1 million issued by the government since January 1, 2019.”
Government funding to CN last year came even as the company posted record revenue of $17.1 billion that year, which was 18 percent more than the previous year, according to its 2022 annual report.
“CN has again delivered solid operational and financial performance in 2022, with strong earnings per share and free cash flow,” the company wrote in the report.
“We helped our shareholders in 2022 by distributing $4.7 billion through our share repurchase plan and increasing the company’s quarterly dividend by 19%.”
Other grants
NRCan also revealed in the Department’s investigation that over the past two years it has awarded millions of federal grants to other major companies to install EV charging stations under the same “Contributions to Support Clean Fuels, Transportation and Industry” program.
The federal department awarded Tesla Motors Canada (TMC) more than $5 million in 2021 to install 78 EV chargers in BC and 51 such chargers in Saskatchewan and Alberta.
In 2022, TMC received nearly an additional $4.8 million to build 64 EV chargers in Saskatchewan and Manitoba and 57 in Ontario.
NRCan also awarded Shell Canada more than $3.9 million in 2021 to build 79 electric vehicle fast-charging stations across the country.
The same department said in a separate ministry study earlier this year that it expects Canada’s electrical grid to be expanded by 23 percent over the next several years to support all new EV charging stations being installed across the country.
Tara MacIsaac contributed to this report.
