Ontario launches its hydrogen strategy

NIAGARA FALLS — The Ontario government has released its Low-Carbon Hydrogen Strategy to accelerate the development of the low-carbon hydrogen economy in the province that will try and create jobs and reduce emissions. The strategy will try and position Ontario as a clean manufacturing hub, ready to support new investments to produce clean steel, electric vehicles (EV), and the batteries that power them.

“Through our Hydrogen Strategy, we are leveraging our province’s world-class talent and clean energy advantage as we position Ontario as a world leader in hydrogen,” said Todd Smith, Minister of Energy. “When energy is clean, reliable and affordable, our whole province benefits. By building critical infrastructure for the industries of the future, including new hydrogen production projects, we are laying the groundwork for game changing investments in EV production and clean manufacturing that will create good paying jobs, grow our economy and reduce emissions.”

With actions including hydrogen production projects and a new electricity rate option pilot for hydrogen producers under consideration, Ontario’s Low-Carbon Hydrogen Strategy is trying to position the province as the clean manufacturing and transportation hub of the future.

Ontario’s strategy is guided by the following objectives:

• Generate economic development and jobs: capitalize on Ontario’s strengths, including the talent, infrastructure and resources, to accelerate growth in Ontario’s low-carbon hydrogen economy.
• Reduce greenhouse gas emissions: support the Made-in-Ontario Environment Plan targets to reduce greenhouse gas emissions by encouraging the use of low-carbon hydrogen.
• Promote energy diversity: consider how low-carbon hydrogen can cost-effectively support Ontario’s evolving energy system and build redundancies through electricity storage and clean fuel supply.
• Promote innovation and investment: enable opportunities for low-carbon hydrogen use and position Ontario as a leading destination for investment.
• Strengthen collaboration: work with the private sector, the federal government, municipalities, Indigenous communities, academic institutions and other stakeholders to grow and sustain a low-carbon hydrogen economy in Ontario.

“As a fuel that can be produced and used with little to no greenhouse gas emissions, low-carbon hydrogen has tremendous potential to help us meet our long-term economic and environmental goals,” said David Piccini, Minister of the Environment, Conservation and Parks. “Supporting innovation and investment in clean technologies will help secure a cleaner, more prosperous Ontario now and for generations to come.”

The Low-Carbon Hydrogen Strategy did not yet announce any new funding or regulations for cleantech projects or manufacturers to help them make the hydrogen transition. As part of this strategy, the government is supporting a proposal from Atura Power, a wholly owned subsidiary of Ontario Power Generation (OPG), to build, own and operate the province’s largest low-carbon hydrogen production facility in Niagara Falls.

The proposed facility would be a source of low-carbon hydrogen with a 20-megawatt (MW) electrolyzer that is capable of providing grid balancing services and using low-cost off-peak electricity. Ontario’s support for the project includes an exemption from the Gross Revenue Charge for electricity generated at the Sir Adam Beck Generating Station used specifically for hydrogen production.