Canadian hydrogen
a world leading innovative technology

Industry Partners

About Hydrogen

Hydrogen is a very promising energy source. It can be produced from a range of sources; water and electricity, natural gas, crude oil, biomass, and industrial by-products. Canada has a comparative advantage in the production of hydrogen. The country has substantial low-cost hydrocarbon resources and abundant clean electricity from hydroelectricity, nuclear, wind, and solar.

When used as a fuel, hydrogen only produces water and heat. There are no carbon emissions. A full-cycle assessment of its potential to reduce emissions depends, however, on how it is produced. That, in turn, depends upon the technologies available and their costs. In 2020 the federal government launched the Hydrogen Strategy for Canada to support Canada as a global hydrogen leader. The objective is to use this fuel technology to achieve net-zero carbon emissions by 2050. The federal government has invested $1.5 billion in a Low-carbon and Zero-emissions Fuels Fund to increase the production and use of low-carbon fuels, including hydrogen.

Statistics

  • Canada ranks in the top 10 of global hydrogen producers and produces some 3 million tonnes of hydrogen annually for industrial use – approximately 4 percent of the global total
  • In 2019, the Canadian hydrogen and fuel cell sector had revenues of more than $210 million and provided 2,100 jobs in Canada
  • The International Energy Agency anticipates grey hydrogen (i.e., produced from fossil fuels) to remain the most cost-effective production pathway until 2030 in most regions of the world; in Canada, however, cost-competitive clean hydrogen through natural gas with carbon abatement is expected before 2030

Innovation

Canada is a leader in hydrogen and fuel cell research, as well as development and early-stage commercialization. The country is a large producer and user of hydrogen. It is home to a substantial amount of hydrogen and fuel cell expertise. The industry comprises all elements of the hydrogen value chain, from production to end-use, including innovative technologies like zero-emission vehicles.
Within the industry, forms of hydrogen are categorized by the emissions associated with its production. The categories are assigned a colour. Much of Canada and the world’s current production is considered “grey hydrogen”. That indicates that it is produced from the highest emitting sources of GHGs.

Canada is well-positioned to produce multiple categories of hydrogen. The country’s immense natural gas reserves make the future production of less emitting “blue hydrogen” more feasible than in other countries, especially given the existing delivery infrastructure which can be adapted for hydrogen. And as carbon capture, usage, and storage technology matures, led by Canada, grey and blue hydrogen may become increasingly attractive. Finally, the lowest emission hydrogen production, “green hydrogen”, is strongly supported by a Canadian electricity industry that is over 80 per cent non-emitting. Hydropower, nuclear, wind, and solar are available across the country.

Environmental, Social, and Governance (ESG)

The Canadian hydrogen industry can draw on a multitude of natural advantages. Clean electricity and fresh water are essential for green hydrogen. Canada has ample supplies of both. An enormous – by world standards – hydrocarbon resource base easily supports both grey and blue hydrogen. And a world-leading position in carbon capture, usage, and storage promises a narrowing of the distinction among green, blue, and grey hydrogen.

Another advantage, which is often not fully recognized, is the fact that the hydrogen industry is developing in a country that has rigorous regulatory standards. As a resource economy in a sensitive ecological and social environment, members of the energy sector are familiar with managing the social responsibility issues and regulatory demands that must be respected.

Its small-to-no greenhouse gas footprint has placed hydrogen at the cutting edge of energy and environmental innovation across the world and Canadian producers are held to high standards.