Canada publishes its federal Hydrogen Strategy: 32 recommendations and a net-zero goal by 2050

The federal government of Canada published on 16 December 2020 the Hydrogen Strategy for Canada, presented on behalf of Natural Resources Canada (NRCan) by Minister Seamus O’Regan. The document identifies hydrogen as one of the tools for achieving climate neutrality by 2050 and contains – according to the summary by the law firm Osler – 32 recommendations, and its first phase covers 2020–2025.

Main assumptions

The strategy is meant to position Canada as a producer, user and exporter of low-carbon hydrogen. It stresses the use of various production pathways: electrolysis powered by renewable or hydro energy, gas reforming with CO₂ capture and other technologies, rather than narrowing the goal to a single "colour" of hydrogen. Canada has several advantages: abundant natural gas, a high share of hydropower in some provinces and experience in fuel cell technologies.

Figures from the NRCan announcement

According to the NRCan announcement of 16 December 2020 (delivered in St. John’s, Newfoundland), the strategy is backed by a federal investment of CAD 1.5 billion in the Low-carbon and Zero-emissions Fuels Fund, and low-carbon hydrogen could reduce annual greenhouse gas emissions by as much as 45 million tonnes in 2030 and create up to 350,000 new jobs by 2050. According to Osler the 32 recommendations were grouped into eight pillars, and the Alberta Industrial Heartland near Edmonton was named as one of the first potential hubs. In 2025–2030 the emphasis is to shift towards growth and diversification of the sector.

Regional hubs

The strategy provides for the creation of regional hydrogen hubs, that is, clusters of production, storage, transport and consumption within one region. This approach is meant to reduce infrastructure costs and speed up the use of hydrogen in industry, heavy transport and heating.

Stages

The document divides activities into phases, the first of which – 2020–2025 – is to build the foundations: regulations, standards and codes, pilot projects and the first hubs. Later phases assume scaling up and exports. As with any strategy, much depends on later financial and regulatory instruments.

Hydrogen and biogas and biomethane

Although the strategy is mainly about hydrogen, it matters for the biogas sector: biomethane can serve as a feedstock for hydrogen production by reforming, and organic waste and landfill gas as a source of hydrogen from biomass. Canadian provinces with a developed RNG market (British Columbia, Quebec) can link the two areas.

Why hydrogen in the Canadian context

Canada has large natural gas resources, significant hydropower potential and a large heavy industry sector, which makes hydrogen an interesting element of decarbonisation. The strategy treats it as an energy carrier and an industrial feedstock, not as a solution for transport alone.

What next

The strategy announced further instruments: regulations, standards and codes, and financial support for the first projects.

What this means for Poland and Europe

Canada, like the EU, builds its hydrogen policy on "hubs" and on a broad spectrum of technologies. The difference lies in resource advantages and in the fact that Canada is considering exports to Europe – an important context for Polish importers and infrastructure operators.