Ontario’s Low-Carbon Hydrogen Strategy A PATH FORWARD
To become a leader in the low-carbon hydrogen economy, Ontario's strategy is guided by the following objectives:
- Generate Economic Development and Jobs: Capitalize on Ontario's competitive and regional advantages, including our talent, infrastructure and resources, to accelerate growth in Ontario's low-carbon hydrogen economy.
- Reduce Greenhouse Gas Emissions: Support our Made-in-Ontario Environment Plan targets to reduce GHG emissions by encouraging the use of low-carbon hydrogen.
- Promote Energy Diversity: Consider how low-carbon hydrogen can cost-effectively support Ontario's evolving energy system and build redundancies through electricity storage and clean fuel supply.
- Promote Innovation and Investment: Enable opportunities for low-carbon hydrogen use and position Ontario as a leading destination for investment.
- Strengthen Collaboration: Work with the private sector, the federal government, municipalities, Indigenous communities, academic institutions and other stakeholders to grow and sustain a low-carbon hydrogen economy in Ontario.
Ontario's strategy is grounded in immediate actions to enable production and expand the low-carbon hydrogen economy in our province:
- Launching the Niagara Falls Hydrogen Production Pilot: Atura Power proposes to produce hydrogen in Niagara Falls using electricity from the Sir Adam Beck hydroelectric generating station as part of its grid regulation services to Ontario's electricity system. The government filed a regulatory exemption to the Gross Revenue Charge (GRC) for electricity used by this project.
- Identifying Ontario's Hydrogen Hub Communities: Atura Power is working to identify additional strategic locations across the province for hydrogen "hubs" where low-carbon hydrogen demand can be matched by low-carbon hydrogen production that leverages existing electricity infrastructure and Ontario's clean electricity grid. The Ministry of Energy will also undertake its own third-party led feasibility study to explore opportunities to establish new low-carbon hydrogen or clean fuel hubs in Ontario.
- Assessing the Feasibility of Hydrogen Opportunities at Bruce Power: Bruce Power will launch a feasibility study to explore opportunities to leverage excess energy from the Bruce Nuclear Generating Station for hydrogen production and support a centre of excellence in the region.
- Developing an Interruptible Electricity Rate: Ontario will be working towards reducing electricity rates to support low-carbon hydrogen production through a proposed Interruptible Rate pilot that would offer large electricity consumers reduced electricity rates in exchange for reduced consumption during system or local reliability events. The Ministry of Energy will also undertake consultations on other electricity rates that could help to further grow Ontario's low-carbon hydrogen economy.
- Supporting Hydrogen Storage and Grid Integration Pilots: Ontario will ask the Independent Electricity System Operator (IESO) to report back on program options to support hydrogen storage and grid integration pilot projects.
- Transitioning Industry Through the Use of Low-carbon Hydrogen: Ontario is taking immediate steps to support the efforts of industry to phase out their use of coal by transitioning to low-carbon processes and hydrogen-ready equipment. For example, Ontario is contributing $500 million in support to the $1.8 billion project by ArcelorMittal Dofasco at its Hamilton facility to replace coal-fed furnaces with a hydrogen-ready electric arc furnace (EAF). This project will reduce GHG emissions by about three million tonnes annually.
- Consulting on an Ontario Carbon Sequestration and Storage Regulatory Framework: Ontario is proposing changes to the Oil, Gas and Salt Resources Act and the Mining Act frameworks to enable carbon storage activities on Crown land. Carbon sequestration offers the opportunity to produce low-carbon hydrogen using natural gas.
- Supporting Ongoing Hydrogen Research: Ontario is supporting two independent hydrogen research projects in partnership with Natural Resources Canada to advance hydrogen development in the province.
