Canada

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Update November 2024

On May 10, 2024, Canada released the Hydrogen Strategy Progress Report, its first update of its federal Hydrogen Strategy for Canada (released December 2020). The Progress Report summarizes progress that has been made since 2020 and reiterates that low-carbon hydrogen has a role to play in supplementing electrification to decarbonize hard-to-abate sectors in Canada, creating sustainable jobs, and providing our international allies with energy security. It highlights that Canada has made progress in:

· developing an ecosystem of hydrogen policies, regulations and measures across the value chain;

· advancing international commitments to provide competitive and reliable low-carbon hydrogen to advance the energy security imperative with our friends and allies and compete as a major exporter of hydrogen;

· growing interest in the development of the low-carbon hydrogen sector, through over 80 production project announcements, end-use pilot projects, early-stage hubs forming, and the publication of 7 provincial hydrogen strategies/action plans[1] to complement the federal strategy.

In June 2024, the Clean Hydrogen Investment Tax Credit (CHITC) was brought into law, providing up to 40% in refundable tax credit for specific business investments in clean hydrogen projects. The levels of support will vary from 15% to 40% of eligible project costs, depending on the life cycle emissions of the hydrogen produced. Certain labour conditions would have to be met for proponents to access their credit in full. The CHITC also extends to equipment for converting clean hydrogen to ammonia, at a credit rate of 15%. The credit applies as of March 28, 2023, and will be phased out by 2035. Canada also brought into law three other major clean economy tax credits that can complement the CHITC, including:

· the Clean Technology Investment Tax Credit, which can offer a credit of up to 30% on the adoption and operation of new clean technology property, such as equipment used to generate electricity from solar, wind and water energy

· the Clean Technology Manufacturing Investment Tax Credit, which can offer a credit of up to 30% for new machinery to manufacture technologies, including manufacturing of electrolysers, which can lower the costs of hydrogen project equipment manufactured in Canada

· the Carbon Capture, Utilization and Storage Investment Tax Credit, which can offer a 37.5% to 60% credit on the equipment necessary to capture, transport and store carbon emissions, benefitting facilities producing hydrogen from natural gas

Canada has advanced its hydrogen alliance with Germany through a $300 million ($CAD) commitment to support clean hydrogen trade with Germany, which will be matched by an equal funding commitment from Germany. The funds will be allocated via a competitive auction process, for a dedicated Canada-Germany H2 Global funding window. In September, Germany’s Federal Ministry for Economic Affairs and Climate Action submitted a White Paper to the European Commission providing a high-level description of the Canada-Germany window to launch the European Commission approval process.

[1] Of the seven provincial hydrogen strategies/actions, three were newly published since the previous Country Update, including the Nova Scotia Green Hydrogen Action Plan (December 2023), New Brunswick Hydrogen Roadmap (January 2024), and Newfoundland and Labrador Hydrogen Development Action Plan (May 2024).

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Update November 2024

Provide information on the progress of current demonstration projects and any newly introduced demonstration projects since the last country update. Please highlight any deployment decisions made by stakeholders. Also, identify any workforce developments including training and educations initiatives for the workforce, and employment numbers.

· HTEC has built a network of 5 operational light-duty vehicle hydrogen fuelling stations across British Columbia, with more planned for construction

· Hydrolux’s “Trans-Québec 1” project includes the development of 7 hydrogen refuelling stations equipped with 5 MW electrolysers

· Air Products is planning to build Alberta’s first commercial refuelling station near its Net Zero hydrogen production complex for both heavy-duty trucks and light-duty cars

· Greater Toronto Airports Authority is working with Carlsun Energy to develop Ontario’s first public hydrogen refuelling station at Toronto Pearson, with $1 million in funding from NRCan’s ZEVIP program

· The Alberta Zero Emissions Truck Electrification Collaboration (AZETEC) involves the demonstration of 2 heavy-duty, class 8 fuel cell electric trucks that will operate freight, year round, between Edmonton and Calgary

· Edmonton Transit and neighbouring Strathcona County are conducting a pilot trial of 2 hydrogen buses (the buses are currently in service)

· In BC and Alberta, Canadian Pacific Kansas City and Southern Railways are retrofitting diesel locomotives, with ATCO constructing 1 MW electrolysers at Calgary and Edmonton railyards. CPKC successfully tested a hydrogen-powered locomotive on one of its lines, pulling a train along the company’s Western Canada corridor.

· BC is providing $4 million through its Commercial Vehicle Pilots Program and Advanced Research and Commercialization program to the BC Hydrogen Ports Project to demonstrate hydrogen at the Port of Vancouver, led by a consortium of companies headed by HTEC

Note for IPHE: There may be other deployment updates that occurred in 2023 and may not have been covered in the previous country update. For a fulsome list, please consult Canada’s Hydrogen Strategy Progress Report.

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Update November 2024

Provide information on upcoming hydrogen-related events that will include international participants. Also, please provide any information regarding solicitations[1] that can lead to collaboration among IPHE members.

Canadian Hydrogen Convention is likely to take place in April or May 2025 (to be determined). The 2024 convention included a keynote speech from the President of Poland and speakers from Japan.

[1] Can include Requests for Information and Calls for Proposals and other requests that may or may not involve funding support but looks to address issues that may be of interest to IPHE members

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Update November 2024

In August 2024, Canada announced a $9.14-million (6.5M US$) investment for six projects to support innovation in Canada’s clean hydrogen sector. Of this funding, $2.74 million (1.96M US$) was allocated through the Energy Innovation Program, including:

$1.25 million (US$ 0.89M) to the University of British Columbia to develop a pilot plant of its patented pyrolysis technology for low-cost, low-emission hydrogen production.
$900,000 (US$ 640k) to Enbridge Gas Inc. in Ontario for the Markham Virtual Hydrogen Hybrid Demonstration Project, which aims to demonstrate the use of existing wind and solar assets within Ontario’s power grid to produce renewable hydrogen and reduce power supply intermittency.
$590,223 (US$ 420k) to Hydrogen in Motion in British Columbia to generate clean hydrogen with low-pressure solid-state storage, distribution and transport. This project is supported by the Hydrogen Centre of Excellence, a strategic initiative led by Alberta Innovates.
$1.09 million (US$ 780k) to Ayrton Energy in Alberta to assess the feasibility of safe, efficient and cost-effective storage and transportation of hydrogen in conventional tanks, trucks and pipelines at ambient temperature and pressure. This project is also supported by the Hydrogen Centre of Excellence.

Funding is also allocated to Clean Fuels Fund projects to advance knowledge of the impacts of blending hydrogen into Canada’s existing utility networks. The hydrogen blending study represents an overall investment of up to $6.4 million (US$ 4.6M), including:

$5 million (US$ 3.6M) to Enbridge Gas Inc. in Ontario to conduct a System-Wide Hydrogen Blending Study to determine blended hydrogen gas’s feasibility and maximum limits in the Ontario utility’s existing network.
$1.4 million (US$ 1M) to Trans Québec & Maritimes Pipeline Inc. in Quebec for a study to assess the technical feasibility of blending up to 10-percent hydrogen segments of their existing natural gas transmission system.

In August 2024, the Federal Economic Development Agency for Southern Ontario (FedDev Ontario), announced a $2 million (US$ 1.42M) repayable investment funding for Next Hydrogen Corporation, a Mississauga-based clean tech company that supports sustainable practices by manufacturing innovative electrolyzers that use water and electricity to produce clean hydrogen for use as a renewable energy source.

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Last updated January 2019

Canadian Statement (PDF); 30th Steering Committee Meeting; Pretoria, South Africa; December 4 - 7, 2018

Canadian Statement (PDF); 29th Steering Committee Meeting; Kobe, Japan; May 8-11, 2018

Canadian Statement (PDF); 28th Steering Committee Meeting; Netherlands; November 20-23, 2017

Canadian Statement (PDF); 27th Steering Committee Meeting; Hamburg, Germany; April 25-28, 2017

Canadian Statement (PDF); 26th Steering Committee Meeting; Gwangju, Republic of Korea; November 1-4, 2016

Canadian Statement (PDF 510KB); 25th Steering Committee Meeting; Berkeley, CA, USA; May 17-20, 2016

Canadian Statement (PDF); 24th Steering Committee Meeting;Grenoble, France; 1-3 December 2015

Canadian Statement (PDF); 23rd Steering Committee Meeting; Wuhan, China; 27-28 May 2015

Canadian Statement (PDF 155KB); 22nd Steering Committee Meeting; Rome, Italy; 2-3 December 2014

Canadian Statement (PDF 289KB); 21st Steering Committee Meeting; Oslo, Norway; 19-21 May 2014

Canadian Statement (PDF 70KB); 20th Steering Committee Meeting; City of Fukuoka, Japan; 20-21 November 2013

Canadian Statement (PDF 313KB); 19th Steering Committee Meeting; London, United Kingdom; 23-24 May 2013

Canadian Statement (PDF 348KB); 17th Steering Committee Meeting; Cape Town, South Africa; 3-4 May 2012

Canadian Statement (PDF 701KB); 14th Steering Committee Meeting; Shanghai, China; 21-22 September 2010

Canadian Statement (PDF 575KB); ILC/SC Joint Meeting; Washington, DC; 1-3 December 2009

Canadian Statement (PDF 295KB); Steering Committee Meeting; Reykjavik, Iceland; 26-27 September 2006

Canadian Statement (PDF 1.04MB); Steering Committee Meeting; Kyoto, Japan; 14-15 September 2005

Canadian Statement (PDF 343KB); Steering Committee; Paris, France; 26-28 January 2005

Canadian Statement (PDF 616KB); Steering Committee; Beijing, China; 26-28 May 2004

Canadian Statement (PDF 10KB); ILC Meeting; Reisensburg, Germany; 26 February 2004

Ministerial Statement (PDF 70KB); IPHE Inaugural Ministerial Meeting; Washington, D.C.; 20 Nov 2003

Contact: Amandeep GARCHA | amandeep.garcha@nrcan-rncan.gc.ca

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