Ontario Doubles Down on Hydrogen to Power Energy Security, Jobs, and Clean Growth

Province expands hydrogen strategy with new funding, pilot programs, and regulatory tools to strengthen local energy systems and reduce emissions

ETOBICOKE — The Ontario government is expanding its commitment to hydrogen as a key energy solution, announcing new pilot programs, funding streams, and regulatory tools to accelerate the province’s low-carbon hydrogen economy. The move is part of Ontario’s broader plan to secure an affordable, reliable, and clean energy supply while supporting job creation and sustainable industrial growth.

“Hydrogen is already proving its value in Ontario,” said Associate Minister Sam Oosterhoff, speaking in Etobicoke. “We’re backing it as a vital part of our diverse energy mix—one that creates good jobs, strengthens manufacturing, and builds a more self-reliant province.”

The province’s expanded hydrogen strategy aligns with Ontario’s forthcoming Integrated Energy Plan, which aims to meet soaring electricity demand and strengthen long-term energy security without increasing dependence on imported sources.

Hydrogen Expansion Highlights

Key initiatives announced include:

• Hydrogen Interruptible Rate Pilot (H2 IRP): Ontario will direct the Independent Electricity System Operator (IESO) to recommend a pilot program offering discounted electricity rates to hydrogen producers who reduce usage during peak demand, helping balance the grid.

• Hydrogen Pipeline Regulation Framework: The province is evaluating an expansion of the Ontario Energy Board’s mandate to regulate hydrogen pipelines, ensuring consumer protection while enabling strategic infrastructure growth.

• Expanded Hydrogen Innovation Fund: Ontario has increased the fund to $30 million, supporting two streams—one for grid integration of hydrogen and another for broader use in transportation and heavy industry.

“Hydrogen gives us another powerful tool in our ‘all-of-the-above’ energy strategy,” said Minister of Energy and Mines Stephen Lecce. “It helps reduce reliance on foreign sources and delivers affordable, Canadian-made energy.”

Economic and Environmental Potential

According to Natural Resources Canada, a national hydrogen strategy could create 135,000 jobs by 2050 and reduce annual emissions by up to 69 megatonnes, if backed by supportive policies. Ontario’s contribution could include thousands of jobs across production, infrastructure, and clean tech innovation.

Hydrogen is especially suited for sectors that are difficult to electrify, such as steelmaking, cement production, refining, and long-haul transportation. It also enables long-duration energy storage, complementing intermittent renewable sources like wind and solar.

“Electricity is being relied on to do more than ever,” said Lesley Gallinger, CEO of the IESO. “Hydrogen can grow alongside Ontario’s electricity sector to meet the challenge.”

Industry Leaders Back Ontario’s Vision

Stakeholders across the clean energy and hydrogen sectors praised the move:

• Jamie Ally, CEO of Elemental Trucks, said Ontario’s hydrogen plan will support zero-emission transport solutions.

• Maike Althaus of Hydrogen Ontario called the new programs “exactly what Ontario needs” to remain competitive and energy independent.

• Matthew Slotwinski, CEO of the Sarnia-Lambton Economic Partnership, noted that hydrogen pipelines are the most efficient way to expand access and support Ontario’s Hydrogen Hub.

“Expanding Ontario’s clean energy supply through hydrogen is vital to meeting demand while enabling economic growth,” added Infrastructure Minister Kinga Surma, MPP for Etobicoke Centre.

Next Steps

Ontario’s hydrogen strategy builds on its 2022 Low-Carbon Hydrogen Strategy and supports the Integrated Energy Plan’s vision of a secure, sustainable, and self-sufficient energy system for the future. With commercial hydrogen projects already underway across the province, today’s announcements aim to accelerate adoption and solidify Ontario’s role as a global leader in clean manufacturing and innovation.

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