A golden opportunity for Canada in hydrogen

Since the announcement of the European Union hydrogen strategy in July 2020, many countries worldwide have announced their own hydrogen strategies, some of them ambitious and some weak. As an example, since 2020, more than 80 countries in the world, representing more than 80 per cent of the global GDP, have adopted a hydrogen strategy or are about to do so. What about Canada? The federal government released its hydrogen strategy on Dec. 16, 2020, and overall, little progress has been made since that announcement. This is disappointing. As we all know, Canada has more than 100 years of expertise, know-how, and reputable industries in the hydrogen sector. We are also blessed with vast territories and an abundance of water, minerals, natural resources, abundant renewable electricity generation potential, natural gas and oil, and large harbours (West to East) to support this growing sector. These are perfect ingredients for building a strong hydrogen value chain from mineral extraction to low carbon hydrogen production, electrolyser, fuel cell and hydrogen storage manufacturing, hydrogen distribution and utilization. It is certain that Canada should benefit from this growing global demand for hydrogen and Canada could become one of the top leaders in this rapidly expanding sector. Canada has a golden opportunity to become not only a domestic consumer and an exporter of clean hydrogen, but also an exporter of clean hydrogen technologies. However, it should be emphasized that hydrogen is not “the silver bullet” for our decarbonization targets by 2050, it will certainly contribute to it as it is part of a portfolio of several low-carbon energy technologies. For now, the primary focus should be on targeting industries and sectors difficult to decarbonize, the so-called “no-regret" sectors or the “hard-to-decarbonize” and “hard-to-electrify” sectors, especially the energy-intensive industries (e.g., steel, cement, fertilizer industries, etc.) and heavy-duty transportation. It is clear there is a great need for more investment at the federal and private sector levels on par with the current ongoing investment in the European Union, the United States, and China for constructing and implementing hydrogen infrastructures across the whole hydrogen value chain. Canada needs to have a strong policy that would put Canadian hydrogen technology companies on a global platform like the EU, the United States, and China have successfully been doing so far. In the U.S., the Inflation Reduction Act of 2022 provides many attractive options for projects, including CAPEX and production incentives. Already, companies in Canada are feeling the pain, experiencing the consequences of this U.S. Inflation Reduction Act. To ensure that we do not lose investment and potential to the U.S. and other regions of the world, Canada must develop very quickly a supportive ecosystem, incentivize hydrogen production, hydrogen technology and hydrogen demand. At a House of Commons committee appearance in November 2022, I made the following recommendations: Accelerate the deployment and capacity of low-carbon intensity hydrogen technologies and renewable energy systems, and work internationally and with provinces and municipalities to accelerate the development of clean hydrogen codes and standards and implementation of “hydrogen hubs” across Canada from West to East.Engage with stakeholders including Indigenous communities and quickly implement community-led clean energy projects.Innovate in low cost and highly efficient hydrogen production technologies with better integration with renewable energy systems, better hydrogen storage and hydrogen transport systems.Focus on local strategic minerals and sustainable materials for clean energy for the heating, transport, and industrial sectors, as well as innovations in recycling.Implement policy and funding to support low cost, clean hydrogen production in line with the U.S. Inflation Reduction Act 2022 that allow Canadian manufacturers and project developers to compete for investment, develop and retain human capital, and create jobs.Attract international experts and labour, and put in place faster and much more efficient immigration processes.Invest in extensive R&D programs and state-of-the-art R&D infrastructure to validate the technology, to generate innovation, IP, and new industries, as well as investing in training programs to train the next generations of Canadian hydrogen and clean energy engineers, scientists, technologists, and economists. I am glad to see that some of my recommendations have been addressed by the Nov. 3 fall economic statement. In response to the “aggressive” approach of the U.S. IRA, the Canadian government is currently consulting on clean hydrogen (and labour conditions) for clean investment tax credits to be available across a range of “clean hydrogen” pathways, which is linked to a range of carbon intensities related to its production (see announcement on 12.01.22). We have a great opportunity to design an effective investment tax credit scheme that helps Canada secure a place as a strong contestant for world class hydrogen investment and hydrogen projects. We need to ensure that it doesn’t go to waste! Dr. Bruno Pollet is a professor of chemistry at the University of Quebec at Trois-Rivières. He is a Tier 1 Canada Research Chair in Green Hydrogen Production with a strong focus on the next generation of electrolyzers and other low-carbon hydrogen-generating technologies. The Hill Times

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A golden opportunity for Canada in hydrogen

Hydrogen can contribute to Canada's 2050 decarbonization targets, as part of a portfolio of low-carbon energy technologies

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