The Ontario government is investing $30 million to launch a new round of the Hydrogen Innovation Fund, supporting projects aimed at unlocking hydrogen’s potential to drive economic growth, create good-paying jobs and strengthen the province’s position as a world leader in the clean energy economy.
This investment doubles the funding from the previous round and expands eligibility criteria under Energy for Generations, Ontario’s long-term energy roadmap designed to build a resilient, secure and self-reliant energy sector capable of powering the most competitive economy in the G7.
“By expanding the Hydrogen Innovation Fund, our government is making a strategic investment as part of our plan to protect Ontario’s economy and energy independence,” said Sam Oosterhoff, Associate Minister of Energy-Intensive Industries. “Hydrogen technologies are already unlocking new opportunities for private sector investment and creating good-paying jobs, all while enhancing our competitive edge and making Ontario a world leader in the hydrogen sector as we build a more competitive, resilient economy.”
The expanded fund includes two streams: one for projects integrating low-carbon hydrogen into Ontario’s electricity grid, and another supporting broader sector applications of hydrogen across transportation, manufacturing and heavy industry. The fund will also help create hydrogen hubs, connect producers with end-users, and encourage the use of made-in-Ontario hydrogen.
The updated criteria will promote projects developed by Canadian companies to help strengthen Ontario’s economy and energy security. The expanded fund responds to industry feedback for increased government support and reaffirms Ontario’s commitment to advancing a low-carbon hydrogen economy.
“Hydrogen has potential as both a clean energy resource and a major economic play that can create tens of thousands of jobs,” said Stephen Lecce, Minister of Energy and Mines. “Our government’s focus is on delivering affordable energy to families, along with creating good-paying jobs as we build-up Ontario’s low-carbon future.”
Hydrogen technologies are seen as uniquely suited to fill gaps in the energy system that are difficult or costly to address through electrification alone. The province said hydrogen can help manage peak electricity demand, provide long-duration energy storage and reduce emissions in sectors such as steel, cement and refining.
“Ontario’s Hydrogen Hub in Sarnia-Lambton applauds the leadership of the Ontario government – and especially Minister Oosterhoff – as the build out of the low-carbon hydrogen economy and establishment of defined hydrogen hubs stand to benefit significantly from the support of the Hydrogen Innovation Fund,” said Matthew Slotwinski, CEO of the Sarnia-Lambton Economic Partnership. “The development of the at-scale low-carbon hydrogen economy starts with leveraging innovation to connect hydrogen producers and users, setting the stage for long-term economic growth, job creation, clean energy integration, and low-carbon diversification.”
According to a 2023 study commissioned by Natural Resources Canada, a robust hydrogen economy could create up to 70,000 jobs across Canada by 2050, including in Ontario, in areas such as production, infrastructure, storage and clean technology development, while helping to reduce greenhouse gas emissions.
Supporting hydrogen innovation helps deliver on the goals of Energy for Generations, Ontario’s first integrated energy plan, which identifies hydrogen as a strategic resource that complements other fuels and technologies to meet growing demand and support industry, heavy transportation and reliable energy generation.
