The Canadian Hydrogen Association’s (CHA) “Clean Hydrogen on the Hill” report outlines Canada’s evolving position in the clean hydrogen sector and underscores the necessity for collaboration between government and industry to facilitate a transition to a low-carbon economy. Ivette Vera-Perez, President and CEO of CHA, states, “Hydrogen has the potential to transform Canada’s clean energy landscape,” emphasizing that such transformation will depend heavily on strategic partnerships and supportive national policies.
Federal Policy Alignment
A central theme of the report is the urgent need for federal support in advancing Canada’s hydrogen economy. The CHA advocates for policies such as the Clean Hydrogen Investment Tax Credit (CH ITC) as essential tools for industry growth. The report highlights the potential impact of federal strategies, asserting that “the current federal hydrogen strategy envisions a future where hydrogen delivers up to 30% of Canada’s end-use energy by 2050,” with an opportunity to create more than 350,000 high-paying jobs nationally.
To bolster this vision, the CHA outlines critical policy recommendations, including expanding the Clean Fuels Fund (CFF) to include hydrogen, as this could help address Canada’s competitive positioning relative to other nations. The report warns, “Without comprehensive support for hydrogen under the CFF 2.0, Canada risks falling behind in the global hydrogen economy.” The CHA also calls for the broadening of the CH ITC to encompass industrial by-product hydrogen and methane pyrolysis technologies, reinforcing Canada’s historical strengths in hydrogen technology development.
Regional Strengths in Hydrogen Production
The report delineates Canada’s regional advantages in hydrogen production, emphasizing the country’s geographic diversity and rich resource base that could facilitate its leadership in the hydrogen sector. Western Canada, especially Alberta and British Columbia (BC), is spotlighted as a critical hub for hydrogen production. Alberta’s considerable natural resources and advanced carbon capture and storage (CCS) technologies position it well for clean hydrogen production.
BC is noted as a global leader in hydrogen fuel cell technology, with more than 50% of Canada’s hydrogen and fuel cell companies based in the province. The Metro Vancouver region, in particular, is recognized for its economic impact, generating over CAD $375 million in annual revenue from hydrogen-related businesses. The report states, “Companies from Metro Vancouver’s world-renowned hydrogen fuel cell cluster have exported BC-engineered fuel cells to 26 countries, powering more than 4,500 heavy-duty vehicles worldwide.”
Ontario’s role is highlighted as well, leveraging its nuclear power capacity to produce low-carbon hydrogen through electrolysis. The province derives over 58% of its electricity from nuclear energy, making it a significant contributor to clean hydrogen production. “Nuclear power can generate the clean electricity needed to crack water and produce hydrogen without emitting any carbon dioxide,” the report indicates.
Hydrogen in Heavy-Duty Mobility and Industrial Sectors
The CHA report further emphasizes hydrogen’s potential in decarbonizing transportation and industrial sectors. It asserts that hydrogen is a key player in reducing emissions from medium and heavy-duty transportation, which traditionally relies on diesel. The CHA advocates for robust policies to promote hydrogen-powered vehicles, including tax incentives and investments in refueling infrastructure. “A strong policy framework will position Canada as a leader in clean energy mobility,” the report asserts.
The industrial sector presents additional opportunities for hydrogen integration. Alberta’s hydrogen advantages extend to critical industries, including petrochemicals, fertilizers, and power generation, making it a pivotal player in decarbonizing hard-to-abate sectors. The report states, “Hydrogen can reduce carbon dioxide emissions by up to 80% in a hydrogen-diesel dual-fuel solution,” providing immediate pathways for emissions reduction.
Public Awareness and Advocacy
Despite the opportunities, the report underscores the existing challenge of public awareness regarding hydrogen as a clean energy solution. To address this, the CHA plans to launch a National Hydrogen Awareness Campaign aimed at demystifying hydrogen and highlighting its safety, utility, and environmental benefits. As stated in the report, “Public understanding and support—social license—are essential for the industry’s success. Without it, even the best technologies will fail to gain traction.”
The CHA’s advocacy also focuses on ensuring governmental alignment with the Hydrogen Strategy for Canada, working closely with federal departments such as Natural Resources Canada and Innovation, Science and Economic Development Canada to create policies that facilitate hydrogen adoption and infrastructure development. Vera-Perez notes, “The conversations we’re having this week are an important step, and I’m excited about what we can achieve together.”
Climate Insider Analysis
The “Clean Hydrogen on the Hill” report emphasizes the importance of strategic policy development and regional strengths in positioning Canada as a leader in the global hydrogen economy. The report reflects a collaborative effort between industry stakeholders and government bodies to advance the hydrogen agenda.
The CHA’s recommendations underscore the urgent need for federal alignment on hydrogen policy, particularly in extending support through programs like the Clean Hydrogen Investment Tax Credit and the Clean Fuels Fund. The comparison with U.S. initiatives, such as the Inflation Reduction Act, suggests that Canada must act decisively to secure investment and avoid ceding ground to global competitors.
On a regional level, Canada’s resource diversity— with Western Canada excelling in CCS and hydrogen production, while Ontario leverages its nuclear power capacity—provides a robust foundation for growth. However, the report highlights that enhancing public awareness and launching government-backed pilot projects are essential steps needed to accelerate hydrogen adoption across key sectors.
As the report concludes, the hydrogen sector represents a “once-in-a-generation opportunity” for Canada to diversify its energy mix, generate economic benefits, and meet its net-zero emissions targets. Moving forward, sustained collaboration between the public and private sectors will be critical to unlock the full potential of hydrogen, not just for Canada, but as a cornerstone of the global clean energy transition.
Featured Image: Credit: Canadian Hydrogen Association
