The Ontario government this week announced plans to expand the province’s hydrogen sector to help supply reliable clean energy to build new homes and support economic growth.
Hydrogen technologies are uniquely suited to help fill gaps in the energy system that are too difficult or costly to solve through electrification alone, according to Sam Oosterhoff, Associate Minister of Energy-Intensive Industries. Unlocking hydrogen’s full potential can help the province meet peak electricity demand and enable long-duration energy storage to complement intermittent renewables.
“Hydrogen is already proving its value in Ontario, and we’re backing it as an important part of our diverse, reliable, and clean energy mix,” stated Oosterhoff.
The plans include Ontario directing the Independent Electricity System Operator to provide recommendations for a pilot program that would offer hydrogen producers discounted electricity rates in exchange for reducing consumption during peak demand periods.
“Electricity is being relied on to do more than ever, requiring greater coordination across all the energy types powering Ontario’s future economy,” commented Lesley Gallinger, who serves as chief executive officer of the IESO. “It is critical that we continue our work with stakeholders to advance, integrate and enable the hydrogen sector so that it can grow along with Ontario’s electricity sector.”
The province is also evaluating the expansion of the Ontario Energy Board’s mandate to regulate dedicated hydrogen pipelines to protect consumers, while facilitating more development of this new hydrogen infrastructure.
“Expanding Ontario’s clean energy supply, particularly through low-carbon hydrogen, is vital for sustaining our province’s growth while meeting the rising demand for reliable and affordable energy,” remarked Kinga Surma, MPP, Etobicoke Centre.
A stronger hydrogen economy could create up to 135,000 jobs across Canada by 2050, according to Natural Resources Canada.
“At a time when global competitiveness and economic resilience are more important than ever, this kind of vision is exactly what Ontario needs to strengthen its industrial backbone, create well-paying jobs, and become energy independent,” believes Maike Althaus, Executive Director of Hydrogen Ontario.
These initiatives stand among “several actions” being advanced through Ontario’s first-ever Integrated Energy Plan, which the province says “will be released soon.”