Section 127.48

The concept of an “operating year” is defined to “disregard … any period during which the project is not operating”, so that, for example, if it did not operate for one month, the operating year might be 13 months.

CRA was referred to the following scenarios:

• The carbon capture and storage plant is shut down, but the hydrogen continues to be produced.
• The supply of the eligible renewable hydrocarbon is disrupted, but the hydrogen continues to be produced using a different eligible hydrocarbon.
• Dedicated wind turbines are down, but the hydrogen continues to be produced by using electricity from the electrical utility grid.

CRA concluded:

[T]he meaning of “not operating” in this context refers to those periods during which hydrogen is not produced in any amount.

Consequently, each of the periods described in the scenarios above would not be considered a period during which the project is not operating. In other words, since hydrogen continues to be produced by the project in each of the outlined scenarios, the project is considered to be operating. Accordingly, for the purposes of determining the cumulative 365-day period set out in the definition of “operating year”, such periods would not be disregarded.