Walk towards the overturned truck and move to its back, approaching the orange dressed prisoner under the heavy element. According instructions you have to swipe the touchpad in order to move the heavy element and help Hank. Unfortunately the man will capture the main character and (unintentionally) will give him Smoke Dash.
Wait until Delsin wakes up. Any attempt to move will result in uncontrolled transformation into smoke and you do not have to worry about quite chaotic movement of your character because after few such transformations the situation will calm down. You can start your walk now and in order to avoid fallen trees you have to use Smoke Dash. By default this power is activated by pressing circle button on the controller.
Keep avoiding fallen trees until you reach the place where Hank attacked Reggie. Run towards main character's brother and after short conversation position yourself near the overturned police car. You have to use the touchpad again, this time with pressing it and holding for few seconds with two thumbs. After that brothers will push the car off of Reggie.
Move towards the cannery gate and after you realize that it is close, listen to the local characters. As you probably guessed you can use Smoke Dash in order to get to the courtyard adjacent to the cannery. Locate there a red vent shown on the above screen and use the Smoke Dash again to use the vent. Once Delsin gets to the cannery roof, head towards next vent and once again press circle button.
Move to the burning passage and try to use Smoke Dash, ignoring the fact that this action fails and Delsin suffers minor burns. The main character will pick up the chain, unlocking the option of main attack (square button). Once again move to the blocked passage and start pressing square button to unlock your way. Do the same with other obstacles finally reaching the room where you'll watch one more cutscene with Betty and Hank.
After watching the cutscene you'll find yourself in the main room and you'll have to defeat Hank, which is quite easy. Start with using Smoke Dash and use near covers to avoid projectiles shot by him. In the meantime try to get closer to him. Once you get close enough to the convict use the main attack with your chain. Do not count on defeating him with one series of attacks because he will try to move away from you. Fortunately you do not have to worry that he will flee but be ready to overcome various obstacles (closed gate among other things). After Hank leaves the building, move to the exit door and use the touchpad.
It is here that you run into Augustine for the first time and you will have to take an important decision, towards the end of the meeting (the above screenshot). If you want to gain good karma you need to Turn Yourself In (the blue option). If you want to gain bad karma, you need to mind your own business and Sacrifice the Tribe (the red option).