As the world moves to clean energy, investing in clean technologies will help ensure Canada remains a global energy leader. Ultra-low carbon sources of energy such as hydrogen, wind, solar, hydro and nuclear power are key to driving down energy costs for Canadians and to seizing the enormous economic opportunities that are available in all regions of the country.
Today, the Honourable Jonathan Wilkinson, Minister of Energy and Natural Resources, announced a $9.14-million investment for six projects to support innovation in Canada''s clean hydrogen sector. Of this funding, $2.74 million was allocated through the Energy Innovation Program, including:
Funding is also allocated to Clean Fuels Fund projects to advance knowledge of the impacts of blending hydrogen into our existing utility networks. The hydrogen blending study represents an overall investment of up to $6.4 million, including:
This federal government is fostering economic growth and building Canada''s clean economy. In doing so, we are investing in projects like the ones announced today to accelerate the production, distribution and use of clean fuels, including clean hydrogen. These advancements are guided by Canada''s Hydrogen Strategy (2020), which is positioning Canada as a global supplier and producer of clean hydrogen on our path to net zero by 2050.
"Canadian businesses have the ambition and drive to provide clean energy solutions and become the supplier of choice in a net-zero world. This is especially true when we see the progress being made throughout the hydrogen value chain and across the regions to advance Canada''s growing hydrogen sector. Investments like the ones announced today are a great example of what the hydrogen opportunity can do for Canadians — helping create jobs, grow the economy and contribute to a sustainable future."
The Honourable Jonathan WilkinsonMinister of Energy and Natural Resources
"By working with partners and industry, we can ensure that Canada remains a global supplier of choice for clean energy, ensuring a prosperous future for Canadians from coast to coast to coast. UBC''s project to develop a pilot plant for low-cost, low-emission hydrogen production marks it as a key player in the clean technology ecosystem in Canada. This federal government is pleased to support investment in local energy leaders who are carving the path to a net-zero future."
The Honourable Joyce MurrayMember of Parliament for Vancouver Quadra
Interest in low-carbon hydrogen in Canada has increased significantly since 2020, with over 80low-carbon hydrogen production projects announced, representing over five million tonnes of hydrogen production capacity and an economic expression of interest of over $100 billion in potential investment in domestic clean energy opportunities and jobs.
Since 2020, British Columbia, Alberta, Ontario, Quebec, Nova Scotia and New Brunswick have published hydrogen strategies, identifying hydrogen as a provincial clean energy priority and describing provincial actions and objectives to realize regional low-carbon hydrogen objectives.There are now 13 low-carbon hydrogen production facilities in operation across Canada able to produce over 3,000 tonnes of low-carbon hydrogen per year.
NRCan''s Energy Innovation Program advances clean energy technologies that will help Canada meet its climate change targets while supporting the transition to a low-carbon economy. It funds research, development and demonstration projects and other related scientific activities.
Launched in June 2021, the Clean Fuels Fund aims to invest $1.5 billion to grow the production of clean fuels in Canada, such as hydrogen, renewable diesel and natural gas, cellulosic ethanol, synthetic fuels and sustainable aviation fuel.
Countries around the world are looking to Canada as a clean energy supplier of choice. The Canada–Germany Hydrogen Alliance, supported by a $300 million investment from Canada that will be matched by a similar investment from Germany, will directly support the export of Canadian clean hydrogen, produced in Atlantic Canada, to support decarbonization efforts in Germany.
For years, David Lloyd has been intrigued by hydrogen-powered cars. Living in Burnaby, B.C., he regularly passes by Ballard Power Systems — the hydrogen fuel cell company — and often wonders when the technology would go mainstream.
Then last month, while his RAV4 was getting serviced at a Toyota dealership, he spotted a hydrogen car in the showroom. He couldn't believe it.
Lloyd wasn't in the market for a new vehicle, but he bought it anyway.
He's owned the Toyota Mirai for a few weeks and enjoys the smooth, quiet drive. Filling up at one of the three nearby hydrogen stations is pretty straightforward, he said, and costs about $50 if the tank is empty. The vehicle is emission free.
"I'm surprised that I could get in on this sort of next wave of technology," said the 69-year-old former university instructor.
WATCH | Take a spin in the Toyota Mirai:
The fuel is having a moment globally, in large part because it's viewed as a critical component in combating climate change, improving air quality and creating economic growth in a carbon-constrained world.
Amid this resurgence of interest in hydrogen, Ottawa has been crafting a long-term strategy aimed at securing a place for a Canadian sector in what's expected to be a significant, global industry in the decades ahead.
The government anticipates it will release its plan this fall.
As momentum around hydrogen builds globally and other countries execute their own strategies, Ottawa is under pressure to act.
"Things are happening quickly," said Natural Resources Minister Seamus O'Regan, who remembers riding on a Ballard hydrogen-powered bus during Expo 86 in Vancouver.
"It looks like trends we saw before the pandemic have accelerated. We want to be ahead of it."
WATCH | O'Regan on what hydrogen could mean for Canada:
But hydrogen's hurdles include technology, economics, infrastructure and transportation requirements. Producing large amounts of the fuel in a low-carbon and affordable way has also been challenging. The cleanest way of making hydrogen is to use renewable electricity to split water into oxygen and hydrogen through a process called electrolysis.
Governments around the world have begun investing money to kick-start the sector, a move the federal government and some provinces have signalled they will follow. Alberta and Quebec have already committed funding to hydrogen.
The federal natural resources department has been working with industry and different levels of government for the last three years on the project.
The strategy is expected to lean into the strengths Canada already possesses, including low-carbon intensive electricity, like hydro, and ample fossil fuel reserves, according to background documents provided by the federal government.
Alberta has been working with Ottawa on the national strategy and is developing its own blueprint.
Hydrogen in Alberta is traditionally made from natural gas, but the province believes it can become a leader in cleaner "blue" hydrogen by introducing carbon-capture-and-storage technology to the process.
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