New National Hydrogen Strategy Unveiled

Today, the Minister of Natural Resources, Hon. Seamus O'Regan, alongside the Minister of the Environment and Climate Change, Hon. Jonathan Wilkinson, launched the Hydrogen Strategy for Canada which establishes a framework that seeks to position Canada as a global leader in the hydrogen space. The Strategy has the objective of positioning hydrogen both as a driver for low-carbon economic growth and as a core component of Canada's path to net-zero emissions by 2050. The full Strategy can be viewed here.

The launch of the Strategy follows Friday's publication of a renewed federal Climate Plan, which includes a commitment to fund a $1.5 billion Low-Carbon and Zero-Emissions Fuels Fund. This new funding stream was framed as a vehicle to increase the production and use of low-carbon fuels, including hydrogen. The Clean Fuel Standard, a regulatory framework currently under development, may also provide opportunities to grow Canada's developing hydrogen sector.

The Strategy's vision is to position Canada amongst the top three clean hydrogen producers in the world, creating up to 350,000 new jobs in Canada by 2050.  The Strategy further notes that if Canada seizes the opportunities for hydrogen, by 2050 the country could:  

• See up to 30% of Canada's energy delivered in the form of hydrogen;
• Reach 5 million Fuel Cell Vehicles on the road;
• Enable $50 billion in direct hydrogen sector revenue for the domestic market; and,
• Develop an established and competitive hydrogen export market.

Looking to the months and years ahead, the Strategy makes 32 recommendations across the eight pillars of the Hydrogen Strategy for Canada. Together, the recommendations aim to spur investment and partnerships to establish Canada as a global hydrogen supplier, increase domestic production, and transform Canada's energy sector.

The eight pillars of the plan are summarized below.

1. Strategic Partnerships - Strategically use existing and new partnerships to collaborate and map out the future of hydrogen in Canada.
   
2. De-Risking of Investments - Establish funding programs, long-term policies, and business models to encourage industry and governments to invest in growing the hydrogen economy.
   
3. Innovation - Take action to support further R&D, develop research priorities, and foster collaboration between stakeholders to ensure Canada maintains its competitive edge and global leadership in hydrogen and fuel cell technologies.
   
4. Codes and Standards - Modernize existing and develop new codes and standards to keep pace with this rapidly changing industry and remove barriers to deployment, domestically and internationally.
   
5. Enabling Policies and Regulation - Ensure hydrogen is integrated into clean energy roadmaps and strategies at all levels of government and incentivize its application.
   
6. Awareness - Lead at the national level to ensure individuals and communities are aware of hydrogen's safety, uses, and benefits during a time of rapidly developing technologies.
   
7. Regional Blueprints - Implement a multi-level, collaborative government effort to facilitate the development of regional hydrogen blueprints to identify specific opportunities and plans for hydrogen production and end use.
   
8. International Markets - Work with our international partners to ensure the global push for clean fuels includes hydrogen so Canadian industries thrive at home and abroad.

Throughout the Strategy implementation, the government notes that it will consult with key stakeholders, including businesses. Also supporting the government's aims will be the roll-out of the $1.5 billion Low-Carbon and Zero-Emissions Fuels Fund and possibly other federal funding support programs.

As this consultation moves forward, and as the details of the Strategy begin rolling out, let Sussex help connect you with the right people in government to help your organization get through these extraordinary times.

Please reach out to your Sussex representative directly or to a member of the Federal or E&E Government Relations Teams.