NRCAN awards $4.5 Million to Salish Elements for Xaxli’p Green Hydrogen Project

Salish Elements CEO Omar Kassem describes the detailed design and engineering work that will be completed as part of the $4.5 million awarded from NRCAN at an announcement held July 9, 2025 at SFU Harbour Centre.

North Vancouver, BC, July 09, 2025 – Salish Elements was awarded $4.5 million from Natural Resources Canada (NRCAN) through the Indigenous-led building new domestic production capacity stream of the Clean Fuels Fund. The funds will be allocated to complete the front-end engineering and design of a 25 MW green hydrogen production utility.

The utility is majority-owned by an Indigenous community government, Xaxli’p, residing in the Squamish-Lillooet region of B.C. Xaxli’p is one of 11 communities that make up the St’at’imc Nation.

Salish Elements and Xaxli’p Development Corporation announced a partnership in June 2024 and have since then formed a limited partnership to own and operate the utility. The project will create 30 jobs during development and construction, leading to an estimated 10 permanent positions when the utility is operational.

The company will make hydrogen via the electrolysis of water, then liquify it for local and regional use as a zero-carbon fuel alternative to diesel. The hydrogen will be used in heavy duty transportation, as a diesel-alternative energy source in remote communities and other sectors that battery-electric technology alone cannot serve.

Through the Xaxli’p project, Salish Elements is redefining how industrial development coexists with communities. The company works to incorporate the natural landscape and existing ecology of the area into utility design, as well as integrate traditional Indigenous governance of Xaxli’p into the overall development process. The partners are working to align development with Xaxli’p’s Ecosystem Management Plan which was formed by Xaxli’p elders and leaders more than 25 years ago.

The initial 25 MW plant is the flagship project for Salish Elements, which is currently developing complementary projects in production, infrastructure, and end-use applications as part of a series of Indigenous-owned and operated green hydrogen production and distribution facilities spanning from Northern B.C. to California. Construction work will follow this stage of project development upon reaching a final investment decision, which the company plans to announce prior to the start of 2026.

NRCAN’s decision to support the utility will help strengthen the overall hydrogen economy in Canada.  Through developing distributed areas of consistent, local and carbon-negative hydrogen production, the consumer market can then depend on hydrogen fuel cell technologies that are needed to abate emissions rates in B.C. and Canada.

Quotes:

Salish Elements CEO, Omar Kassem: Our company is the first of its kind to transition not just fossil fuels to green energy, but to transition the way business is done so that it is fairer and more equitable to the people, the land, and the waters. Through our community partnership approach, we are addressing the climate issue and, most importantly, the socio-economic issues around unsustainable resource development by ensuring local communities and the people are the majority beneficiaries of the green energy future.

Salish Elements Chairman, Rueben George: This funding from the Government of Canada is a great start to advancing this essential green technology with Indigenous communities. Never before in history have we needed something like this technology so greatly. We look forward to continuing to work to bring this essential technology forward.

The Honourable Tim Hodgson, Minister of Energy and Natural Resources: “NRCan’s support for the Xaxli’p-led Salish Elements project demonstrates how federal investment can advance Indigenous economic sovereignty and Canada’s clean energy goals in tandem. This project demonstrates that community-led hydrogen development can help decarbonize key sectors while respecting Indigenous leadership and the deep connection to land and environment.”

The Honourable Terry Beech, MP for Burnaby North-Seymour: “This investment in Salish Elements and the Xaxli’p-led hydrogen project represents the kind of sustainable development Canada needs. By putting Indigenous leadership at the heart of this project and committing to environmentally responsible practices, we’re not only addressing the climate crisis but also creating lasting economic opportunities. This initiative will bring good jobs to BC, and I’m excited to see the positive, long-term impact it will have in North Vancouver and beyond.”

Xaxli’p Kukpi7 (Chief) Darrell Bob: “The Xaxli’pmec of Xaxli’p within the St’át’imc Nation are the stewards of our survival territory. Our people are proud to be creating an opportunity to work with green energy. We want to be an example of change and what that would look like into the future for the generations yet to come, and who continue to live and share in the relationship we’ve had with these lands since time immemorial. We are responsible.”

 

Links (in order):

https://natural-resources.canada.ca/energy-sources/clean-fuels/clean-fuels-fueling-future

https://salishelements.ca/xaxlip-and-salish-elements-form-green-hydrogen-production-partnership/

https://www.xaxlipcommunityforest.ca/traditional-use-study

https://salishelements.ca/xaxlip-and-salish-elements-form-green-hydrogen-production-partnership/

 

Journalists may contact our communications team at media@salishelements.ca for more information.

Salish Elements is an Indigenous-led, values-driven clean energy company based in Tsleil-Waututh territory (North Vancouver, BC). Its mission is to activate the global shift to regenerative hydrogen (rH2) and circular economies through First Nations-led infrastructure grounded in Coast Salish Law: Truth, Family, Health, and Culture. 

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