Hydrogen

Hydrogen is the only fuel with the potential to decarbonize the economy everywhere in the world. And the future of hydrogen is in Canada. Canada is already one of the top 10 global hydrogen producers and, with many years of R&D, a leader in innovative hydrogen and fuel cell technologies. Global investors can choose from a wide range of production processes and end uses, including energy for home and industry, and fuel cells for transportation. 

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6 Reasons to invest in Canada's hydrogen industry

Canada is the place to invest in hydrogen. Learn why.

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Low-cost hydrogen

Canada is well-positioned to become a key international producer of hydrogen used in hydroelectricity, carbon capture and storage, and nuclear energy. Being the lowest-cost producer of zero-carbon hydrogen and second lowest for low-carbon hydrogen in the APEC region is a clear advantage. Alberta, British Columbia, and Saskatchewan can produce hydrogen at half the wholesale cost of diesel and have the country’s largest carbon capture storage resources. Quebec has some of North America’s lowest utility costs to drive production costs lower, and Prince Edward Island produces 98% of its energy through wind.

Incentives

Canada’s Net Zero Accelerator fund (part of the Strategic Innovation Fund) allocates $8 billion to expedite decarbonization projects, scale-up clean technology, and accelerate Canada’s industrial transformation. Support for innovative projects includes $1 billion for cleantech investment.

Progressive tax incentives include the Accelerated Capital Cost Allowance: 100% write-off of the cost of machinery and equipment used for the manufacturing, processing of goods and production of renewable energy.

Recognizing that more charging and refueling stations will lead to greater ZEV adoption, the 5-year $280 million Zero Emission Vehicle Infrastructure Program looks to increase the availability of localized charging and hydrogen refuelling opportunities.

The Clean Fuels Fund acknowledges the need for clean fuels – including hydrogen – to play a greater role in Canada’s net-zero future. It will provide the private sector with cost-shared, conditionally repayable funding to build new, retrofit, or expand existing clean fuel production facilities in Canada.

Canada’s hydrogen strategy

Canada has comprehensive strategies for hydrogen, including the Hydrogen Strategy for Canada: Seizing the Opportunities for Hydrogen, as well as provincial strategies by Alberta, British Columbia, Ontario, and Québec. Canada aims to develop stronger hydrogen supply and distribution in the next five years through the deployment of regional hubs, the implementation of regulation to attract near-term investment, and the adoption of new policies to reach 2050 net-zero achievements. Medium- and long-term goals include the expansion of fuel-cell electric vehicles for transportation applications, while increasing large scale pipelines for clean hydrogen and hydrogen/natural gas blending.

You’re in good company

Recent Investment Announcements

Aug2021

Hexagon Purus

Norway-based Hexagon Purus announced the construction of a facility in Kelowna, British Columbia to manufacture battery packs and hydrogen fuel storage systems for medium and heavy-duty battery and fuel cell electric commercial vehicles. The site will also be a technical centre for engineering and research and development.

Jun2021

Air Products

U.S based Air Products announced a $1.3 billion investment for the first phase of a blue hydrogen project in Edmonton. With an aim to capture 95% of its carbon emissions and reducing the company’s carbon intensity to close to zero, the new complex is slated to be running by 2024 and will further establish Edmonton as a hub for Western Canada’s hydrogen economy.

Apr2021

cellcentric / Daimler AG / Volvo

In creating cellcentric, a fuel-cell joint venture with operations in Burnaby, British Columbia and in Stuttgart, Germany-based Daimler AG and Sweden-based Volvo formalized its industry-first commitment to accelerate the use of hydrogen-based fuel-cells for long-haul trucks, and beyond.

Jan2021

Thyssenkrupp

Germany-based Thyssenkrupp was awarded an engineering contract by Hydro-Québec for a joint venture’s Green Hydrogen product division (Thyssenkrup Uhde Chlorine Engineers) to install an 88-megawatt water electrolysis plant for green hydrogen in Varennes, Québec. The new facility will be able to generate 11,100 tonnes of zero-carbon hydrogen per year.

Jan2021

Air Liquide

France-based Air Liquide has chosen Bécancour, Québec for the construction of the world’s largest Proton Exchange Membrane (PEM) electrolyser. In establishing the world’s largest hydrogen membrane-based production unit in Canada, Air Liquide will help meet the growing demand for low-carbon hydrogen in North America.