Ontario Doubling Hydrogen Innovation Fund to $30 Million to Protect Ontario Jobs
- Stephen Lecce, MPP
- 5 days ago
- 5 min read
Updated: 1 day ago
TORONTO – The Ontario government is launching a new round of the Hydrogen Innovation Fund, investing $30 million to unlock hydrogen’s potential to drive economic growth, create jobs and support the province’s position as a leader in the clean energy economy. The new fund will have double the budget of the $15 million 2023 fund and broaden eligibility criteria to include electricity grid-focused initiatives, as well as applications across other sectors, such as transportation.
“The potential of hydrogen is immense, with applications in transportation, manufacturing and heavy industry already transforming how we power our economy,” said Sam Oosterhoff, Associate Minister of Energy-Intensive Industries. “With Ontario’s excellence in the nuclear sector, our history of energy innovation and growth is already second to none. Renewing the Hydrogen Innovation Fund builds on this and will protect Ontario workers and jobs, while securing our province’s economic future. Investing in hydrogen will create thousands of good-paying jobs across the province. This investment means choosing to back Ontario jobs, competitiveness, and long-term prosperity.”
The Hydrogen Innovation Fund will kickstart and develop opportunities for hydrogen to play a bigger role in Ontario’s integrated energy system. The Hydrogen Innovation Fund will do this by supporting projects across two streams:
Projects with direct electricity system benefits, including the integration of low-carbon hydrogen into the electricity grid. Eligible projects would include hydrogen storage and generation, peaking generation capacity, supporting services, and long-term or seasonal storage of surplus renewable energy.
Projects enabling broader energy and other sector applications, including transportation, manufacturing and heavy industry. Eligible projects would include hydrogen production and storage for non-electricity applications, switching existing hydrogen users to low-carbon hydrogen produced in Ontario, creating hydrogen hubs, or the development of new methods to connect hydrogen producers with end-users.
The 2023 Hydrogen Innovation Fund supported 15 groundbreaking hydrogen projects across Ontario that utilized hydrogen as a clean alternative fuel or used hydrogen to generate more electricity. Natural Resources Canada modelling shows that hydrogen could make up as much as 18 per cent of the country's energy use by 2050 and create up to 135,000 jobs across Canada. By investing early in Ontario’s hydrogen sector, the government is setting the stage for long-term economic growth, creating good-paying jobs today and securing Ontario’s prosperity for tomorrow.
"Ontario needs much more power to drive growth in our economy. With hydrogen expected to make up nearly 20 percent of the country's energy use by 2050, our government is seizing the moment by doubling funding to unlock hydrogen's full potential,” said Stephen Lecce, Minister of Energy and Mines. “The world has changed with the election of President Trump. That is why our government is embracing an 'all of the above' strategy to secure affordable Canadian energy sources, as we work to end dependency on the United States.”
Ontario released its Low-Carbon Hydrogen Strategy in April 2022, which outlined the opportunity to draw on Ontario’s clean energy advantage and establish a leadership position in the supply, distribution, storage and use of clean hydrogen. The government recently sought feedback on a renewed Low-Carbon Hydrogen Strategy and will announce further details in the near future.
Expanding Ontario’s Hydrogen Innovation Fund is just one part of Ontario’s Affordable Energy Future, the government’s vision as it plans for rising energy demand, which includes:
Energy Planning – Developing the province’s first integrated energy plan, including all energy resources, such as electricity, natural gas, and other fuels to ensure the province’s energy needs are met in a coordinated and long-term manner.
Nuclear Energy – Advancing clean, reliable, and affordable nuclear power through pre-development work at Bruce Power on the province’s first large-scale nuclear build in 30 years, four small modular reactors at Darlington and supporting Ontario Power Generation Inc.’s plan for refurbishing the Pickering Nuclear Generation Station.
New Transmission Infrastructure – Designating and prioritizing transmission lines in Southwestern, Northeastern and Eastern Ontario that will power job creation, including electric vehicle (EV) and EV battery manufacturing and clean steel production.
Keeping Costs Down – Launching new energy efficiency programs, which build on the government’s $342 million expansion of existing energy efficiency programs which are helping families and businesses reduce electricity usage and save money on energy bills.
Additional Competitive Procurements – Launching the largest competitive procurement of clean energy resources in the province’s history in addition to successfully re-contracting existing capacity resources at about a 30 per cent discount.
Quick Facts
The government intends for the Independent Electricity System Operator (IESO) to administer the 2025 Hydrogen Innovation Fund. Successful applicants for the new and expanded Hydrogen Innovation Fund are expected to be notified in early 2026.
According to the experts at the IESO, hydrogen could play a critical role in a zero-emissions electricity grid.
The IESO’s Pathways to Decarbonization Report included a scenario that incorporated 15,000 MW of hydrogen generation capacity by 2050 to meet peak demands.
Hydrogen is a versatile fuel that can be used for transportation, industrial processes, and energy storage.
Fifteen successful hydrogen projects were announced in October and November 2023, as part of the 2023 Hydrogen Innovation Fund, with a total cost of $13.8M.
Quotes
"Our government is proud to support the innovators and leaders who are working to harness the untapped potential of hydrogen. This investment reinforces our commitment to a sustainable and resilient clean energy future for Ontario."
- Todd J. McCarthy
Minister of the Environment, Conservation and Parks
"York South–Weston is home to innovative businesses like dynaCERT that are driving Ontario’s clean energy future. This investment will help create good-paying jobs, grow local manufacturing, and strengthen Ontario’s position as a leader in hydrogen innovation."
- Mohamed Firin
MPP for York South–Weston
"The way we use energy across the economy is changing, and electricity is playing an increasing role. These investments will provide important learnings about how low-carbon hydrogen can be integrated into Ontario’s reliable and affordable electricity system, powering economic development across the province."
- Lesley Gallinger
CEO and President of the Independent Electricity System Operator
"dynaCERT applauds the Ontario government for expanding the Hydrogen Innovation Fund and recognizing the critical role hydrogen can play in transforming industries at home and around the world. This kind of targeted support helps companies like ours scale innovation, grow domestic manufacturing, and create good-paying jobs right here in Ontario. By backing hydrogen, the government is not only supporting clean energy solutions — it's positioning Ontario as a global leader in the next generation of industrial technology. We’re proud to be part of this momentum."
- Jim Payne
President and Chief Executive Officer, dynaCERT
"We thank the Ontario government—and especially Minister Oosterhoff—for the ongoing support of Ontario’s growing hydrogen sector. Hydrogen is more than a clean fuel; it can be a game-changer for building independent local supply chains and creating high-quality jobs across Ontario. From hydrogen-powered vehicles and electrolyzers to remote power generation and critical applications in mining, refining, steel, and cement— let’s seize Ontario’s hydrogen opportunity to strengthen our manufacturing sector and power key industries to drive a cleaner, more competitive future."
- Maike Althaus
Executive Director, Hydrogen Ontario
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