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The Policy Pillar – Canada: Scaling clean hydrogen for more than just fuel cells

The Policy Pillar – Canada: Scaling clean hydrogen for more than just fuel cells

The “Cambrian explosion” of interest in hydrogen in recent years has reached the Canadian shores where the modern fuel cell industry was born. Long home to a vibrant hydrogen and fuel cell sector – which even in 2017 posted revenues above $200m – Canada’s national and sub-national governments have built policy pillars to raise it to new heights.

Federal Policies

In December 2020 the Canadian Government issued its Hydrogen Strategy for Canada, establishing that hydrogen could provide up to 30% of final energy consumption in a Net Zero Canada by the year 2050. This is similar to the UK Hydrogen Strategy estimate that hydrogen could provide 20%-35% of UK final energy consumption by 2050.

In the same month Canada announced a Clean Fuel Standard to progressively reduce the emissions intensity of liquid fuels used across the country. It drew from California’s successful Low Carbon Fuel Standard, for which the credit price is currently in the $170/tonne CO2 range, or roughly $200/tonne CO2. By comparison Canada’s current carbon price is $40/tonne, with plans to raise it to $170/tonne by 2030.

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