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.

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:

• $1.25 million to the University of British Columbia to develop a pilot plant of its patented pyrolysis technology for low-cost, low-emission hydrogen production.
• $900,000 to Enbridge Gas Inc. in Ontario for the Markham Virtual Hydrogen Hybrid Demonstration Project, which aims to demonstrate the use of existing wind and solar assets within Ontario’s power grid to produce renewable hydrogen and reduce power supply intermittency.
• $590,223 to Hydrogen in Motion in British Columbia to generate clean hydrogen with low-pressure solid-state storage, distribution and transport. This project is supported by the Hydrogen Centre of Excellence, a strategic initiative led by Alberta Innovates.
• $1.09 million to Ayrton Energy in Alberta to assess the feasibility of safe, efficient and cost-effective storage and transportation of hydrogen in conventional tanks, trucks and pipelines at ambient temperature and pressure. This project is also supported by the Hydrogen Centre of Excellence.

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:

• $5 million to Enbridge Gas Inc. in Ontario to conduct a System-Wide Hydrogen Blending Study to determine blended hydrogen gas’s feasibility and maximum limits in the Ontario utility’s existing network.
• $1.4 million to Trans Québec & Maritimes Pipeline Inc. in Quebec for a study to assess the technical feasibility of blending up to 10-percent hydrogen segments of their existing natural gas transmission system.

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.

Quotes

“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 Wilkinson
Minister 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 Murray
Member of Parliament for Vancouver Quadra

Quick Facts

• Interest in low-carbon hydrogen in Canada has increased significantly since 2020, with over 80 low-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.
• Budget 2024 announced the re-tooling of the Clean Fuels Fund. The program is expected to re-launch in December 2024.
• 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.

Related Information

• Hydrogen Strategy for Canada and Progress Report
• 2030 Emissions Reduction Plan: Clean Air, Strong Economy
• Net-zero emissions by 2050
• Budget 2024 – Attracting Investment for a Net-Zero Economy
• Backgrounder: Economic Growth and Productivity
• Clean Hydrogen Investment Tax Credit
• Energy Innovation Program
• Investing in Research, Development and Demonstration Projects in Canada
• Clean Energy Resources and Projects in Canada
• Clean Fuels Fund
• Clean Fuels – Fuelling the Future