On June 10, the Ontario government announced its plans to expand the province's hydrogen energy advantage to ensure the province has affordable, secure, reliable and clean energy to build new homes and support economic growth. Accelerating the growth of Ontario's low-carbon hydrogen sector is part of the government's plan to protect Ontario, which includes an integrated energy plan that will meet the province's growing electricity needs and strengthen Ontario's long-term energy security to reduce reliance on energy providers from outside the province.
"Ontario is taking bold action to build an energy system that supports jobs and powers the province's economic growth - now and for generations to come," said Sam Oosterhoff, Associate Minister of Energy-Intensive Industries. "Hydrogen is already proving its value in Ontario, and we're backing it as an important part of our diverse, reliable and clean energy mix - one that creates good jobs, strengthens manufacturing and builds a more self-reliant province."
Hydrogen technologies are uniquely suited to help fill gaps in the energy system that are too difficult or costly to solve through electrification alone. Unlocking hydrogen's full potential can help the province meet peak electricity demand, enable long-duration energy storage to complement intermittent renewables and reduce emissions in sectors like steel, cement and refining.
To support the growth of a strong hydrogen economy, the government is:
- Creating a New Hydrogen Interruptible Rate Pilot (H2 IRP): The government will direct the Independent Electricity System Operator (IESO) to provide recommendations for a pilot program that would offer hydrogen producers discounted electricity rates in exchange for reducing consumption during peak demand periods.
- Exploring Options to Regulate Hydrogen Pipelines: The province is evaluating the expansion of the Ontario Energy Board's (OEB) mandate to regulate dedicated hydrogen pipelines to protect consumers, while facilitating more development of this new hydrogen infrastructure.
- Expanded Hydrogen Innovation Fund: In March 2025, Ontario announced a new $30 million round of funding for projects. One funding stream will support the integration of low-carbon hydrogen into the electricity grid, such as projects that help create a more reliable grid during peak times. The other will fund projects that support the broader use of hydrogen, such as in transportation and heavy industry.
"If we're serious about building a more self-reliant and sovereign energy future, we need to leverage every energy resource at our disposal to power our homes, businesses and economy," said Stephen Lecce, Minister of Energy and Mines. "Hydrogen gives us another powerful tool in our all-of-the-above' strategy to deliver affordable, Canadian-made energy and reduce our reliance on foreign sources."
According to a summary by Natural Resources Canada of several models, a robust hydrogen economy could create up to 135,000 jobs across Canada by 2050, including thousands in Ontario, in areas such as production, infrastructure, storage and clean technology development. This modelling also predicts that in Canada, hydrogen could eliminate as much as 69 megatonnes of emissions each year in an environment of supportive hydrogen policies.
Innovators and industry across Ontario are already moving forward with commercially viable hydrogen projects that will help meet future demand and cement Ontario's place as a global hub for clean manufacturing and energy innovation.
This initiative is one of several actions being advanced through Ontario's first Integrated Energy Plan, which will be released soon. It reflects the coordinated, long-term approach the province is taking to make sure Ontario has the reliable, affordable energy it needs to be energy secure and create opportunities to export Ontario energy aboard. The government's integrated approach and record investments in energy infrastructure are not only helping to meet the demands of today, but will help protect workers and the economy by keeping workers on the job and powering growth and opportunity for decades to come.
Quick Facts
- Hydrogen is a versatile energy carrier that can be used for transportation, industrial processes, and energy storage.
- According to a whole-economy energy modelling study that was commissioned by the province, hydrogen demand could make up three per cent of total final energy demand in 2050, a significant part of Ontario's energy mix.
- Ontario released its Low-Carbon Hydrogen Strategy in 2022. This strategy set out a vision for a thriving hydrogen economy, with concrete steps already taken to deliver on outcomes.
Quotes
"Expanding Ontario's clean energy supply, particularly through low-carbon hydrogen, is vital for sustaining our province's growth while meeting the rising demand for reliable and affordable energy," said Kinga Surma, Minister of Infrastructure. "By investing in innovative, homegrown solutions, we're ensuring Ontario's industries and communities thrive with a secure, sustainable energy future."
- Kinga Surma, MPP, Etobicoke Centre
"Electricity is being relied on to do more than ever, requiring greater coordination across all the energy types powering Ontario's future economy. It is critical that we continue our work with stakeholders to advance, integrate and enable the hydrogen sector so that it can grow along with Ontario's electricity sector."
- Lesley Gallinger, President and CEO of the IESO
"Hydrogen is poised to play a central role in Canada's clean energy future, and hydrogen fuel cell trucks will be key to driving that transition. By making hydrogen a core part of its energy future, the province is creating the conditions for a thriving zero-emission transport industry and we're proud to be building that technology of the future here."
- Jamie Ally, CEO of Elemental Trucks
"On behalf of Ontario's hydrogen sector, I commend Minister Oosterhoff for his continued leadership in making Ontario a destination of choice for low-carbon hydrogen investment. A hydrogen interruptible rate program and an expanded regulatory oversight for hydrogen pipelines, especially when combined with other policies and programs such as the HIF, both have the potential to catalyze Ontario's hydrogen economy. At a time when global competitiveness and economic resilience are more important than ever, this kind of vision is exactly what Ontario needs to strengthen its industrial backbone, create well-paying jobs, and become energy independent."
- Maike Althaus, Executive Director of Hydrogen Ontario
"The development of the at-scale low-carbon hydrogen economy will greatly rely on the effective build out of strategic hydrogen pipeline infrastructure. Ontario's Hydrogen Hub in Sarnia-Lambton benefits significantly from existing local hydrogen pipeline infrastructure, and competitive growth will rely on the ability to expand delivery of product to off-takers across regional and provincial markets. Hydrogen pipelines represent the most efficient, environmentally safe, and volume capable method of transporting product, while representing a critical pathway to enhancing energy security."
- Matthew Slotwinski, CEO of the Sarnia-Lambton Economic Partnership
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