Energy transition

Can the Oil and Gas Industry Deliver Canada's Hydrogen Strategy?

Canada has several strategic advantages that can support a robust hydrogen industry. These include both carbon-based and renewable resources for producing hydrogen, a skilled energy sector, strategic infrastructure, and a history of being a global leader in the hydrogen and fuel-cell market.

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The Canadian national government presented its new three-phase strategy in December that will build on its strengths in hydrocarbons and renewables.

The growing global interest in hydrogen is clearly evidenced by the number of national governments—whose economies collectively account for over 70% of the global gross domestic product—that have announced hydrogen strategies. The federal government of Canada released its Hydrogen Strategy for Canada in December 2020. The strategy, driven by the federal government's mission to decarbonize Canada's energy systems, outlines the country's plans to harness its potential for significant hydrogen production. The strategy projects that, by 2050, up to 30% of Canada's end-use energy may use hydrogen.

Canada has several strategic advantages that can support a robust hydrogen industry. These include both carbon-based and renewable resources for producing hydrogen, a skilled energy sector, strategic infrastructure, and a history of being a global leader in the hydrogen and fuel-cell market.

Developing Canada's Hydrogen Economy

To encourage hydrogen development in Canada, the strategy makes recommendations under the following eight themes:

  • Creating strategic partnerships, including expanded public/private partnerships
  • Derisking investments by establishing funding programs, long-term policies, and business models for investment
  • Encouraging research and development
  • Updating, harmonizing, and developing new codes and standards
  • Introducing policies and regulations to incent the successful integration of hydrogen energy
  • Fostering awareness of the benefits of and uses for hydrogen
  • Facilitating regional blueprints to identify specific opportunities for hydrogen production and end use
  • Marketing Canada's brand globally to ensure long-term demand for Canada's hydrogen

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