As hydrogen becomes more prominent in conversations about the future energy supply mix, the Ontario government has announced the creation of a three-year, $15 million Hydrogen Innovation Fund. The fund, to be administered by the Independent Electricity System Operator (IESO), is intended to kickstart the development of hydrogen opportunities that can be integrated into the Ontario electricity system.
The Fund will support projects across three streams:
The IESO is expected to open up the funding application process in April, with existing projects to commence by Q4 2023 and new projects to commence by Q2 2025.
The creation of the fund was first identified last April when the government released its Low-Carbon Hydrogen Strategy that laid out eight concrete actions to make Ontario a leader in the hydrogen economy. In October 2022, the IESO reported back to the Ministry of Energy on potential roles for hydrogen to benefit Ontario’s electricity grid, including electricity storage, balancing, ancillary services and potential blending into natural gas facilities.
Hydrogen also had a prominent mention in the IESO’s Pathways to Decarbonization study released December 15, 2023, with the IESO forecasting a need for 15,0000 MW of hydrogen in its 2050 decarbonization scenario.
Sussex continues to be engaged in the evolving provincial energy space and is glad to support clients in any capacity as you consider opportunities available in the Hydrogen Innovation Fund.
Chris Benedetti, Managing Partner
cbenedetti@sussex-strategy.com
Bonnie Hiltz, Vice President and Energy Practice Group Lead
Christina Marciano, Vice President, Environment Practice Group
cmarciano@sussex-strategy.com
Terry Young
