Hydrogen Ontario (H2ON), a…

Hydrogen Ontario (H2ON), a provincial affiliate of the Canadian Hydrogen Association, represents over 100 companies spanning the hydrogen value chain. The organization advocates for hydrogen as a key tool to decarbonize hard-to-abate sectors like petrochemicals, steel, cement, and transportation, while creating economic growth and job opportunities for Ontario.

The province’s Low-Carbon Hydrogen Strategy projects up to 100,000 jobs by 2050, the H2GO Canada Report estimates 70,000 jobs by 2030.

Hydrogen production in Ontario currently relies on electrolysis and emerging technologies like methane pyrolysis. Additionally, new legislation like the Resource Management and Safety Act paves the way for Steam Methane Reforming (SMR) with Carbon Capture and Storage (CCS). Although there are concerns about the electricity demand from electrolytic hydrogen production, projections show minimal grid impact in the next 5-10 years, with a combined capacity of less than 500 MW expected by 2030. Moreover, electrolytic hydrogen facilities can provide grid stability by peak shaving and offering flexibility similar to long-duration storage.

Key recommendations include:

- Consultations for a fixed electricity rate for hydrogen production or a hedging contract mechanism (e.g., a revamped Interruptible Rate Pilot).

- Amending IESO’s Indigenous Energy Support Program to include hydrogen projects, supporting energy solutions for remote First Nations communities.

- Mandating Metrolinx to reconsider transitioning the GoTransit system to hydrogen-powered trains and buses to alleviate grid demand in peak times.

Hydrogen adoption supports grid reliability, alleviates peak energy demand scenarios, and can address energy needs in remote communities. Strategic government support and policy measures are essential for realizing the full potential of hydrogen in Ontario’s energy and decarbonization strategy.

The detailed submission is attached as a pdf.