Ontario Doubles Hydrogen Innovation Fund to $30M, Expands Scope to Boost Clean Energy Jobs

TORONTO – The Ontario government is doubling its Hydrogen Innovation Fund to $30 million in a move aimed at boosting clean energy innovation, creating thousands of jobs, and supporting long-term economic growth across the province.

The expanded fund, first introduced in 2023 with a $15 million commitment, will now support a broader range of projects, including initiatives that focus on integrating low-carbon hydrogen into Ontario’s electricity grid and across key sectors such as transportation, manufacturing, and heavy industry.

Sam Oosterhoff, Associate Minister of Energy-Intensive Industries, emphasized the importance of hydrogen’s growing role in Ontario’s clean energy economy. “Investing in hydrogen will create thousands of good-paying jobs across the province,” he said in a statement. “This investment means choosing to back Ontario jobs, competitiveness, and long-term prosperity.”

With @fordnation @sflecce we’re investing in Ontario’s energy future!

Today I announced that we’re doubling the Hydrogen Innovation Fund – boosting Ontario’s Hydrogen sector and creating good-paying jobs.

We’re building a stronger economy for families and businesses in… pic.twitter.com/iO21qF5q73

— Sam Oosterhoff (@samoosterhoff) March 31, 2025

The fund will support two main streams of projects:

• Electricity-Focused Initiatives: Including hydrogen storage, peaking generation capacity, long-term storage of surplus renewable energy, and other grid-integrated technologies.

• Broader Sector Applications: Such as clean hydrogen production, hydrogen hubs, low-carbon fuel switching, and solutions connecting hydrogen producers with end users.

The 2023 version of the fund supported 15 projects, including hydrogen-based energy storage and clean fuel alternatives, with a total investment of $13.8 million. With hydrogen expected to account for up to 18 percent of Canada’s energy use by 2050, the Ontario government is positioning itself as a national leader in clean hydrogen development.

“This is about ensuring Ontario leads in the new energy economy,” said Minister of Energy and Mines Stephen Lecce. “The world has changed with the election of President Trump. That is why our government is embracing an ‘all of the above’ strategy to secure affordable Canadian energy sources.”

The new investment also aligns with Ontario’s broader Affordable Energy Future plan, which includes major investments in nuclear energy, transmission infrastructure, energy efficiency, and competitive clean energy procurements. The plan includes:

• A new integrated energy plan incorporating electricity, natural gas, and other fuels.

• Major nuclear initiatives at Bruce Power and Darlington, plus refurbishments at Pickering.

• Prioritized transmission projects to support electric vehicle manufacturing and clean steel production.

• Expanded energy efficiency programs to help Ontarians reduce energy bills.

Ontario’s Independent Electricity System Operator (IESO) will oversee the 2025 Hydrogen Innovation Fund, with successful applicants expected to be notified in early 2026.

According to IESO’s Pathways to Decarbonization report, hydrogen could play a vital role in supporting a zero-emissions grid, with up to 15,000 MW of hydrogen generation capacity potentially required by 2050 to meet peak demands.

“Our government is proud to support the innovators and leaders who are working to harness the untapped potential of hydrogen,” said Todd J. McCarthy, Minister of the Environment, Conservation and Parks. “This investment reinforces our commitment to a sustainable and resilient clean energy future for Ontario.”

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