Hydrogen
Low carbon
high potential
Global demand for hydrogen and fuel cell technologies is surging. With over a century of expertise in hydrogen fuel cell and electrolyzer technologies, Canada is a secure and reliable supplier, offering the right conditions for innovation and scale.
Canada's Hydrogen Strategy outlines a $100 billion opportunity by 2050, with export potential to capture a significant piece of the $2.5 trillion global hydrogen economy. Canada offers investors established production infrastructure, export terminals in development and government backing through dedicated tax credits.
As one of the world’s top 10 producers, Canada’s hydrogen industry is present from coast to coast attracting global companies like Air Products, Air Liquide and Linde. The country’s production potential is vast at 5 million tonnes of hydrogen per year.
Global companies with bold ambitions are choosing Canada for its abundant natural gas, clean electricity and water resources to support sustainable hydrogen production. It offers the right conditions for the industry to scale, minimize risks and ensure long-term stability.
The ambitious national hydrogen strategy positions the country as a world leader in hydrogen production and R&D. Canada’s supportive regulatory environment and industry tax credits set global companies up for success.
Discover why many global companies expand their business to Canada’s for its hydrogen potential.
Canadian leadership in hydrogen
Low-carbon hydrogen to meet global demand
Low-carbon hydrogen has an essential role to play in decarbonizing economies and meeting global energy needs. There are 13 low-carbon hydrogen production facilities operating in Canada, including six electrolytic facilities and seven projects that use carbon capture to lower the emissions of carbon-intensive hydrogen production. Global companies benefit from access to established facilities and a growing pipeline of projects.
Canadian firms operate across the hydrogen value chain, offering support for R&D, production, storage and distribution. An extensive natural gas pipeline network and storage solutions allow for the smooth delivery of hydrogen from production sites to industrial users, transport hubs and export terminals.
With strong government support for clean energy initiatives, it all adds up to high value and lower risk for global companies.
Canada investment highlight
Belgium’s TES launches a major hydrogen project in Canada
Green energy developer TES announced a $4 billion project in Shawinigan, Québec to build an electrolyzer and renewable energy production facility aimed at decarbonizing hard-to-abate industries.
The company is developing capacity to produce 70,000 tonnes of green hydrogen annually, which uses renewable energy to power the extraction process. The project includes an 800 MW wind farm and a 200 MW solar farm.
Launch is planned for 2029. Once operational, the facility is expected to reduce greenhouse gas emissions by 800,000 tonnes annually.
“We are proud to be developing this major project in the Mauricie region, the cradle of renewable energy in Québec. The economic spin-offs will position Québec as a leader in decarbonization.”
Fast-tracked approvals and incentives to support your success
Canada’s Major Projects Office now offers financing for energy projects, together with faster project reviews and simpler regulatory processes. Approvals are fast-tracked to maximum of 2 years, making it easier to structure deals and access capital.
Canada has government programs and incentives to fuel growth in the hydrogen industry:
Advanced Clean Energy program: Accelerates the development of clean, renewable fuels and energy storage solutions that help transition to a low‑carbon future.
Canada Growth Fund: Invests in low-carbon projects, technologies and businesses.
Canada Infrastructure Bank: Invests in revenue-generating hydrogen infrastructure projects.
Charging and Hydrogen Refuelling Infrastructure Initiative: Provides financing for new private investment in hydrogen refuelling infrastructure.
Clean Hydrogen Investment Tax Credit: Applies a tax credit to eligible clean hydrogen property and is used for a qualified clean hydrogen project.
Clean Fuels Fund: De-risks capital investments to build new or expand existing clean fuel production facilities, including facility conversions.
Strategic Response Fund: Supports large-scale projects through funding for innovation, technology development and capital investments that modernize operations and expand industrial capacity.
Why choose Canada
Innovative hydrogen technology and fuel cell expertise
Large network of companies and research institutions advancing hydrogen fuel cell innovation
Lowest marginal effective tax rate on new business investment in the G7
Stable, business-friendly environment
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