How Government Action Is Boosting Hydrogen Projects

When the federal government released its hydrogen strategy in late 2020, there was a huge amount of optimism that hydrogen would play a leading role in the energy transition and the decarbonization of the Canadian economy. However, in the years that followed, that optimism was not always matched by actual progress. Now three years later, hydrogen investments are gaining traction. And while the precise shape of the future remains unclear, we are starting to see concrete progress on a number of fronts.

Reaching the next level of hydrogen adoption will require government support, particularly financial. Ottawa has responded with both government funding (e.g., Canada's pledge of $1.5 billion to hydrogen and other clean fuels) and tax credits (e.g., the clean hydrogen investment tax credit).