{"id":67084,"date":"2025-09-22T11:45:47","date_gmt":"2025-09-22T18:45:47","guid":{"rendered":"https:\/\/energi.media\/?p=67084"},"modified":"2025-09-22T11:45:47","modified_gmt":"2025-09-22T18:45:47","slug":"hydrogen-update-a-small-molecules-role-in-canadas-energy-system","status":"publish","type":"post","link":"https:\/\/energi.media\/news\/hydrogen-update-a-small-molecules-role-in-canadas-energy-system\/","title":{"rendered":"Hydrogen update\u2014a small molecule\u2019s role in Canada\u2019s energy system"},"content":{"rendered":"

This article was published by the Canada Energy Regulator<\/a> on Sept. 17, 2025.<\/em><\/p>\n

Hydrogen Projects in Canada<\/h2>\n

With the focus on reducing greenhouse gas emissions, hydrogen is emerging as a potential key player in Canada\u2019s energy landscape. Canada currently produces around 4 million tonnesFootnote\u00a0<\/span>1<\/a><\/sup>\u00a0per annum (Mtpa) of hydrogen, with significant contributions from Alberta, which accounted for 2.6\u00a0Mtpa in 2024, including 0.5\u00a0Mtpa paired with Carbon Capture and Sequestration (CCS<\/dfn>).Footnote\u00a0<\/span>2<\/a><\/sup>\u00a0A further 5\u00a0Mtpa of\u00a0clean hydrogen<\/dfn>Footnote\u00a0<\/span>3<\/a><\/sup>Footnote\u00a0<\/span>4<\/a><\/sup>Footnote\u00a0<\/span>5<\/a><\/sup>\u00a0projects have been announced or are under development across the country.Footnote\u00a0<\/span>6<\/a><\/sup>\u00a0Infrastructure for transporting and storing hydrogen<\/dfn>\u00a0is also expanding to meet growing demand, though current global infrastructure remains lacking.Footnote\u00a0<\/span>7<\/a><\/sup><\/p>\n

The Progress Report for Hydrogen Strategy for CanadaFootnote\u00a0<\/span>8<\/a><\/sup>\u00a0by Natural Resources Canada describes various modelling efforts in Canada, in which most scenarios see hydrogen accounting for between 3% and 12% of Canada\u2019s energy demand by 2050. Scenarios with high hydrogen support or cost reductions see this share reach as high as 18%.<\/p>\n

Hydrogen Production Methods<\/h3>\n

Hydrogen can be produced in many ways, commonly categorized by\u00a0emissions intensity<\/dfn>. These ways include: coal or biomass\u00a0gasification<\/dfn>Footnote\u00a0<\/span>9<\/a><\/sup>, the latter of which can be paired with CCS; Steam Methane Reformation (SMR<\/dfn>) or Autothermal Reformation (ATR<\/dfn>)Footnote\u00a0<\/span>10<\/a><\/sup>, which can both be paired with CCSFootnote\u00a0<\/span>11<\/a><\/sup>;\u00a0methane pyrolysis<\/dfn>; and\u00a0electrolysis<\/dfn>Footnote\u00a0<\/span>12<\/a><\/sup>Footnote\u00a0<\/span>13<\/a><\/sup>. Hydrogen can also occur naturally, and there is ongoing research and exploration to better understand this resource.Footnote\u00a0<\/span>14<\/a><\/sup>Footnote\u00a0<\/span>15<\/a><\/sup><\/p>\n

Figure\u00a01: Summary map: Hydrogen developments in Canada since 2020\u2014production, end-use, hubs, and strategies<\/strong><\/p>\n

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Source: Hydrogen Strategy for Canada: Progress Report, Section 1.1, NRCan<\/em>
Text Alternative: This figure shows a map of Canada, illustrating hydrogen developments in production, demand, and strategy publications. End-use applications are shown as coloured triangles and operating and developing production facilities are shown as pentagons and circles, respectively. The colour indicates the type of production pathway. The size of the circles shows the overall size of the production facility. The shade of provinces or territories indicates the level of development of hydrogen strategies within the region, with darker shade indicating the province has a strategy in place. This figure also illustrates the location of hydrogen projects spread widely across Canada, with more fossil fuel-based hydrogen projects being developed in the West and more electrolysis projects in the East. Biogasification projects are being developed across the country. CER image.<\/em><\/figcaption><\/figure>\n

Applications and Future Projects<\/h3>\n

Hydrogen is an\u00a0energy carrier<\/dfn>Footnote\u00a0<\/span>16<\/a><\/sup>\u00a0with many applications and a wide range of production methods. Currently, most of the hydrogen produced today is used in crude oil refining, steel making, and the chemical industry,Footnote\u00a0<\/span>17<\/a><\/sup>\u00a0but other potential uses include as a fuel or as a method for storing energy from renewable sources. The world uses more than 97 million tonnesFootnote\u00a0<\/span>18<\/a><\/sup>\u00a0of hydrogen annually, 99.6% of which is produced from fossil fuels, typically without using CCS.Footnote\u00a0<\/span>19<\/a><\/sup><\/p>\n

Plans for decarbonizing multiple industries internationally and within Canada depend increasingly on hydrogen. As shown in Figure\u00a01, many projects are underway to leverage clean hydrogen in end-use applications like trucking and heavy industry, as well as production facilities for hydrogen via electrolysis, SMR\/ATR, and biomass gasification. The future of clean hydrogen in Canada is especially promising in addressing\u00a0hard-to-abate<\/dfn>\u00a0sectors, including heavy transportation, high-temperature industrial processes, and in fertilizer production,Footnote\u00a0<\/span>20<\/a><\/sup>\u00a0where hydrogen is synthesized to ammonia\u2014a common feedstock for fertilizer production.<\/p>\n

Federal financial support for hydrogen projects is currently available through the Clean Hydrogen and Renewable Energy Investment Tax Credits, the Clean Fuels Fund, the Canada Growth Fund, and the Canada Infrastructure Bank, while provincial and territorial support mechanisms vary per region. The Progress Report for the Hydrogen Strategy of CanadaFootnote\u00a0<\/span>21<\/a><\/sup>\u00a0highlights the developments in both codes and standards and the establishment of hydrogen hubs across the country, allowing for specialized infrastructure to aid in developing the hydrogen industry in Canada.<\/p>\n

Footnotes<\/h3>\n
    \n
  1. Energy Fact Book<\/a>, NRCan, page 100<\/li>\n
  2. Emerging Resources\u00a0\u2013 Hydrogen<\/a>, AER<\/li>\n
  3. EU unveils methodology to calculate emissions savings in low-carbon fuels<\/a>, White & Case<\/li>\n
  4. Clean Hydrogen Investment Tax Credit (ITC)<\/a>, Government of Canada<\/li>\n
  5. Hydrogen Production and Distribution<\/a>, Alternative Fuels Data Center, US DOE<\/li>\n
  6. Hydrogen Strategy for Canada: Progress Report<\/a>, 1.1 Status of the Canadian hydrogen industry, NRCan<\/li>\n
  7. Global Hydrogen Review 2024<\/a>, IEA, Page 106<\/li>\n
  8. Hydrogen Strategy for Canada: Progress Report<\/a>, NRCan<\/li>\n
  9. Towards hydrogen definitions based on their emissions intensity<\/a>, IEA<\/li>\n
  10. SMR or ATR without the use of CCS is commonly referred to as grey hydrogen. However, as terminology usage can vary widely, it can be clearer to refer to the emissions intensity of the hydrogen production pathway.<\/li>\n
  11. SMR or ATR paired with CCS is commonly referred to as blue hydrogen. However, as terminology usage can vary widely, it can be clearer to refer to the emissions intensity of the hydrogen production pathway.<\/li>\n
  12. Global Hydrogen Review 2024<\/a>, IEA, Page 66<\/li>\n
  13. With hydrogen from electrolysis, the emissions intensity of the electricity used is linked with the emissions intensity of the hydrogen. For example, hydrogen derived from electricity produced by burning coal would not be low carbon hydrogen, but hydrogen derived from electricity produced from wind or solar would be much lower in emissions intensity. Hydrogen made with electricity from renewables is commonly referred to as green hydrogen. However, as terminology usage can vary widely, it can be clearer to refer to the emissions intensity of the hydrogen production pathway.<\/li>\n
  14. Global Hydrogen Review 2024<\/a>, IEA, Page 94<\/li>\n
  15. Hydrogen Wildcatters Are Betting Big on Kansas to Strike It Rich, BNN Bloomberg<\/li>\n
  16. Hydrogen Explained<\/a>, EIA<\/li>\n
  17. Global Hydrogen Review 2024<\/a>, page 21, IEA<\/li>\n
  18. Global Hydrogen Review 2024<\/a>, page 21, IEA<\/li>\n
  19. Hydrogen Guide<\/a>, Wood Mackenzie<\/li>\n
  20. Hydrogen Strategy for Canada: Progress Report<\/a>, 2.4 Modelling projections of low-carbon hydrogen\u2019s role in net-zero by 2050, NRCan<\/li>\n
  21. Hydrogen Strategy for Canada: Progress Report<\/a>, 1.2 Major policy and regulatory updates, NRCan<\/li>\n<\/ol>\n

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