MENU
01
Home
02
Services
03
Sectors
04
Team
05
Our Work
06
Updates
07
Careers
08
Contact
Services
01
Government Relations
02
Communications & Digital
03
Advisory Services
Sectors
01
Energy
02
Environment
03
Health Care
Updates
01
Insights
02
News
EN
FR
HomeServicesSectorsTeamOur WorkUpdates
EN
FR
insights
updates
April 7, 2022

Provincial Government Releases Low-Carbon Hydrogen Strategy

written by
Environment Team
Provincial Government Releases Low-Carbon Hydrogen Strategy

Earlier today, the Hon. Todd Smith, Minister of Energy (MOE), the Hon. David Piccini, Minister of Environment, Conservation & Parks (MECP), alongside local representatives and clean technology leaders, unveiled Ontario’s Low-Carbon Hydrogen Strategy.

Developed through extensive stakeholder consultations since early 2021, the strategy articulates Ontario’s vision and expectations for the growing hydrogen sector. Canada’s hydrogen economy is expected to contribute up to 30% of national fuel and feedstock, along with 350,000 new jobs, by 2050.

The strategy identifies eight near-term policies and investments that could enable an eight-fold increase of low-carbon hydrogen production in Ontario, while developing the technology and encouraging demand:

  1. Niagara Falls Hydrogen Production Pilot: Atura Power, a wholly owned subsidiary of Ontario Power Generation (OPG), proposes to develop a 20 MW electrolysis facility using water and electricity from the Sir Adam Beck hydroelectric generating station. Notably, the government granted an exemption to the Gross Revenue Charge (GRC) for electricity used by this project. The project is be completed as early as 2024, establishing the province’s first “hydrogen hub.”
  2. Hydrogen Hub Communities: identifying additional locations throughout the province, particularly with existing energy infrastructure, where it’d be feasible to concentrate close-proximity, high-volume hydrogen production and consumption – thereby reducing distribution/delivery infrastructure costs. Potential sites include Sarnia-Lambton, Nanticoke, Brighton, and Halton Hills.  
  3. Opportunities at Bruce Power: further analysis into leveraging surplus energy from Bruce Nuclear Generating Station for hydrogen production, as well as supporting a Centre of Excellence in the region.
  4. Interruptible Electricity Rate: an Interruptible Rate pilot for large electricity consumers, offering reduced rates in exchange for moderating consumption during system or local reliability events.  MOE will also undertake further consultations on additional electricity rates that could foster low-carbon hydrogen.
  5. Storage & Grid Integration Pilots: instructing the IESO to report back on options for storage and integration projects, such as the ongoing 2.5 MW hydrogen-blending pilot in Markham by Enbridge and Cummins.
  6. Industry Transition via Low-carbon Hydrogen: supporting the phase-out of industrial coal usage through low-carbon processes and hydrogen-ready equipment, such as Ontario’s $500 million investment in ArcelorMittal Dofasco’s $1.8 billion conversion to a hydrogen-ready electric arc furnace (EAF) in Hamilton.
  7. Carbon Sequestration & Storage Regulatory Framework: proposing changes to the Oil, Gas and Salt Resources Act and the Mining Act frameworks to enable carbon storage activities on Crown land, allowing for low-carbon hydrogen to be produced with natural gas when paired with sequestration.
  8. Support for Hydrogen Research: supporting two independent hydrogen research projects in partnership with Natural Resources Canada to advance hydrogen development.

The strategy further details Ontario-specific opportunities in the production, distribution, and consumption of low-carbon hydrogen, as well as potential for interprovincial/cross-border trade, and novel applications for hydrogen in existing industrial operations. It concludes on future areas of work, including collaboration with federal and municipal governments, addressing regulatory barriers, and raising public awareness of the benefits of low carbon hydrogen.

Read the full memo.

Happy to help.

If you are interested in learning more about the growing opportunities in this sector, please contact a Sussex consultant for more information and analysis.

Chris Benedetti
Managing Partner
cbenedetti@sussex-strategy.com
view profile
Mark Olsheski
Vice President, Energy
molsheski@sussex-strategy.com
view profile
Patrick Gajos
Vice President, Energy & General Counsel
pgajos@sussex-strategy.com
view profile
share article
Link copied
‍

RECENT POSTS

PM Carney announces removal of counter-tariffs in latest phase of negotiations with the United States
August 22, 2025

PM Carney announces removal of counter-tariffs in latest phase of negotiations with the United States

Today, Prime Minister Mark Carney announced that the Government of Canada will be removing a series of counter-tariff measures placed on the United States as the latest step in negotiating a final trade and security deal.

New Federal Housing Consultation Launched
August 12, 2025

New Federal Housing Consultation Launched

Canada Launches Consultation on Build Canada Homes - Opportunity to Shape a Major Federal Housing Initiative

Alberta and Ontario Sign Historic MOU for Energy Development and Cooperation on Critical Minerals and Supply Chains
July 7, 2025

Alberta and Ontario Sign Historic MOU for Energy Development and Cooperation on Critical Minerals and Supply Chains

This morning in Calgary, Alberta Premier Danielle Smith and Ontario Premier Doug Ford signed a historic collaboration agreement to get Ontario’s critical minerals and Western Canada’s oil and gas to new markets.

view all
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
company
HomeTeamCareersContactTerms & PoliciesAccessibility
explore
ServicesSectorsOur WorkUpdates
follow us
ALL RIGHTS RESERVED © 2020
Land Acknowledgement