Montreal, January 15 - Hydrogen is an energy resource that can operate machinery, supply electricity and heat to residences, and power vehicles, emitting no carbon dioxide. It is recognized as an “energy carrier,” meaning it can retain and transport energy from various generation methods. As the demand for sustainable energy intensifies, numerous corporations and governments have identified this storage method as a significant advancement toward addressing the broader challenge of energizing our planet. Hydrogen presents an opportunity to decarbonize numerous industries and reduce greenhouse gas emissions. Canada recognized for its production of hydroelectricity, oil, and natural gas, presents the question if the country will invest in this emerging technology and how it will affect its stakeholders.

Hydrogen has the potential to fulfill up to 24% of global energy requirements by 2050, expanding to 700 million tonnes annually (Alberta Hydrogen Roadmap, 9). This is further supported by a projected market valuation of $2.5 trillion per year by 2050 (Alberta Hydrogen Roadmap, 4). PwC forecasts that demand will remain consistent until 2030, after which it will surge, and production costs will decrease by approximately 50% through 2030, continuing to drop more significantly by 2050. Additionally, "export and import hubs will emerge globally, similar to current oil and gas hubs but with new participants in renewable-rich regions" (PwC).

Currently, the predominant method for generating hydrogen is steam reforming, a process in which natural gas is heated with water vapor in the presence of a catalyst to produce hydrogen (Atlas Corpo). However, this method is imperfect as it still emits carbon monoxide into the atmosphere, harming the environment (Atlas Corpo). With ongoing technological advancements, these carbon monoxide emissions are expected to diminish and potentially be eradicated as hydrogen production transitions to renewable energy sources such as wind power, hydroelectricity, and nuclear energy (Atlas Corpo). Although not completely carbon-free, this energy form is projected to replace fossil fuels for heating homes and businesses (Hydrogen – what is it?). This zero-emission hydrogen is called clean hydrogen (Li et al.).

The Government of Canada introduced the Clean Hydrogen Investment Tax Credit (CHITC), a program designed to stimulate the production of this type of energy storage. This initiative aims to generate employment opportunities, ensure Canadian companies maintain global competitiveness, and promote clean energy usage to decrease pollution. The CHITC is expected to provide $17.7 billion in tax incentives by 2035 (Hydrogen Strategy for Canada: Progress Report). As a result, "Invest in Canada" reported in December 2024 that Canada has become the largest producer of clean hydrogen worldwide.

Alberta is especially invested in hydrogen production, viewing clean hydrogen as essential to its integrated energy system and as a means to diversify its energy industry (Alberta Hydrogen Roadmap, 8). Despite being Canada's top oil producer, Alberta envisions a future with clean hydrogen. The province plans to expand Carbon Capture, Utilization, and Storage (CCUS) facilities to support clean hydrogen manufacturing (Alberta Hydrogen Roadmap, 28-29). Tax breaks will be provided to hydrogen technology startups (Alberta Hydrogen Roadmap, 30), and hydrogen will be incorporated into electricity generation and industrial heating systems (Alberta Hydrogen Roadmap, 32). To manage energy storage, Alberta will construct hydrogen fueling stations along major freight routes (Alberta Hydrogen Roadmap, 37). Additionally, the province will establish dedicated investment funds for hydrogen development (Alberta Hydrogen Roadmap, 49).

Québec's abundance of hydroelectricity creates an ideal environment for clean hydrogen production. The province aims to cut greenhouse gas emissions by 37.5% by 2030 and achieve carbon neutrality by 2050 (2030 Québec Green Hydrogen and Bioenergy Strategy, 4). To meet this goal, Québec is deploying green hydrogen in public transit and freight transport systems (2030 Québec Green Hydrogen and Bioenergy Strategy, 26) and transitioning its dominant steel and cement industries to operate on hydrogen. Moreover, the province is working to promote hydrogen-based heating in both residential and commercial sectors (2030 Québec Green Hydrogen and Bioenergy Strategy, 27).

Ontario plans to develop the Niagara Falls Hydrogen Production Pilot utilizing hydroelectric energy (Ontario's Low-Carbon Hydrogen Strategy, 36) and establish infrastructure for hydrogen storage (Ontario's Low-Carbon Hydrogen Strategy, 37). Like Québec, Ontario will conduct feasibility assessments for hydrogen application in nuclear plants (Ontario's Low-Carbon Hydrogen Strategy, 38).

Newfoundland and Labrador will produce clean hydrogen through wind energy projects (Newfoundland and Labrador Hydrogen Development Action Plan, 10) and prioritize export deals with Europe (Newfoundland and Labrador Hydrogen Development Action Plan, 20-22), where hydrogen production is anticipated to be lower than in Canada. The province aims to facilitate partnerships between the public and private sectors to develop infrastructure for hydrogen storage and distribution networks (Newfoundland and Labrador Hydrogen Development Action Plan, 20-22), thereby stimulating other sectors of the economy.

Like Newfoundland and Labrador, Nova Scotia plans to construct large-scale wind farms to support clean hydrogen production (Nova Scotia Green Hydrogen Action Plan, 25) and build a hydrogen export facility for international trade (Nova Scotia Green Hydrogen Action Plan, 24). Additionally, Nova Scotia will implement community engagement strategies to address public concerns (Nova Scotia Green Hydrogen Action Plan, 30).

New Brunswick intends to establish a hydrogen port system to prepare products for export (New Brunswick Hydrogen Roadmap, 33). The province will launch projects to integrate hydrogen into natural gas grids (New Brunswick Hydrogen Roadmap, 28) and fund research and development for hydrogen innovations (New Brunswick Hydrogen Roadmap, 34). Notably, New Brunswick seeks to involve Indigenous communities in the collaborative development of its hydrogen initiatives (New Brunswick Hydrogen Roadmap, 30).

Hydrogen presents an opportunity for Canada to lead the global shift toward sustainable energy. Commitment to these objectives will cause financial gain and solidify Canada’s position as a leader in clean energy.

Works Cited:

2030 Québec Green Hydrogen and Bioenergy Strategy. Gouvernement du Québec, 2022, quebec.ca/en/government/policies-orientations/plan-green-economy.

New Brunswick Hydrogen Roadmap. Government of New Brunswick, 2022, gnb.ca.

Hydrogen Development Action Plan. Government of Newfoundland and Labrador, Department of Industry, Energy and Technology, 2024, gov.nl.ca/iet.

Green Hydrogen Action Plan. Government of Nova Scotia, 2022, novascotia.ca.

Ontario's Low-Carbon Hydrogen Strategy. Government of Ontario, Ministry of Energy, 2022, ontario.ca/page/ontarios-low-carbon-hydrogen-strategy.

Alberta Hydrogen Roadmap. Government of Alberta, Ministry of Energy, 2021, alberta.ca/hydrogen-roadmap.aspx.

B.C. Hydrogen Strategy: A Sustainable Pathway for B.C.’s Energy Transition. Government of British Columbia, Ministry of Energy, Mines and Low Carbon Innovation, 2021, gov.bc.ca.“Green Hydrogen Economy - Predicted Development of Tomorrow.”

PwC, www.pwc.com/gx/en/industries/energy-utilities-resources/future-energy/green-hydrogen-cost.html. Accessed 14 Jan. 2025.

“Hydrogen - Invest in Canada.” Invest in Canada, 17 Dec. 2024, www.investcanada.ca/industries/hydrogen.

Hydrogen Fuel Basics | Department of Energy, www.energy.gov/eere/fuelcells/hydrogen-fuel-basics. Accessed 14 Jan. 2025.

“Hydrogen Production: How Is Hydrogen Made and What Is It?” Atlas Copco, www.atlascopco.com/en-ca/compressors/air-compressor-blog/what-is-hydrogen-and-how-is-it-produced. Accessed 14 Jan. 2025.

“Hydrogen Strategy for Canada: Progress Report.” Natural Resources Canada, / Gouvernement du Canada, 12 Sept. 2024, natural-resources.canada.ca/climate-change/canadas-green-future/the-hydrogen-strategy/hydrogen-strategy-for-canada-progress-report/25678.

“Hydrogen – What Is It?” Hydrogen Energy Explained | National Grid Group, www.nationalgrid.com/stories/energy-explained/what-is-hydrogen. Accessed 14 Jan. 2025.

Hydrogen: A Clean, Flexible Energy Carrier | Department of Energy, www.energy.gov/eere/articles/hydrogen-clean-flexible-energy-carrier. Accessed 14 Jan. 2025.

Li, Serena, et al. “Can Clean Hydrogen Fuel a Clean Energy Future?” World Resources Institute, 6 Aug. 2024, www.wri.org/insights/what-is-clean-hydrogen#:~:text=What%20Is%20Clean%20Hydrogen%20and%20How%20Is%20it%20Made?,the%20only%20byproduct%20is%20oxygen.

“Producing Hydrogen in Canada.” Natural Resources Canada, Gouvernement du Canada, 19 June 2024, natural-resources.canada.ca/our-natural-resources/energy-sources-distribution/clean-fuels/producing-hydrogn-canada/23151.

Toneguzzi, Mario. “New Economy Industries, Hydrogen Drive Alberta Industrial Land Market.” RENX, 28 Dec. 2023, renx.ca/hydrogen-new-economy-industries-alberta-industrial-land-market.

“What Is Hydrogen Energy?” McKinsey & Company, McKinsey & Company, 2 Oct. 2024, www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-hydrogen-energy.