SARNIA, Ont. — The Ontario government has announced a $30 million investment to expand the province’s Hydrogen Innovation Fund (HIF), doubling its previous commitment in a bid to strengthen Ontario’s clean energy advantage, create high-quality jobs, and attract new investment across the growing hydrogen economy.
The new round of funding builds on the province’s Energy for Generations strategy — Ontario’s long-term energy roadmap — and is designed to support hydrogen’s role as both an energy resource and an economic driver. The initiative reflects a growing provincial focus on resilient, self-reliant energy systems that can withstand global market volatility and geopolitical uncertainty.
“By expanding the Hydrogen Innovation Fund, our government is making a strategic investment as part of our plan to protect Ontario’s economy and energy independence,” said Sam Oosterhoff, Associate Minister of Energy-Intensive Industries. “Hydrogen technologies are already unlocking new opportunities for private sector investment and creating good-paying jobs, all while enhancing our competitive edge and making Ontario a world leader in the hydrogen sector as we build a more competitive, resilient economy.”
Expanding the Scope of Hydrogen Development
The expanded Hydrogen Innovation Fund introduces two main funding streams. The first focuses on integrating low-carbon hydrogen into Ontario’s electricity grid, while the second supports hydrogen applications in transportation, manufacturing, and heavy industry. This includes the development of hydrogen hubs, initiatives connecting producers to end users, and projects that replace imported hydrogen with “made-in-Ontario” alternatives.
By broadening eligibility, the government aims to accelerate projects that drive innovation and build a robust clean-energy ecosystem across multiple sectors. The initiative also prioritizes projects led by Canadian companies, reinforcing Ontario’s goal of building domestic supply chains and safeguarding energy security.
The new investment responds to feedback from industry stakeholders who have called for more government support to strengthen Ontario’s leadership in hydrogen development.
“Hydrogen has potential as both a clean energy resource and a major economic play that can create tens of thousands of jobs,” said Stephen Lecce, Minister of Energy and Mines. “Our government’s focus is on delivering affordable energy to families, along with creating good-paying jobs as we build-up Ontario’s low-carbon future.”
A Pathway to Jobs and Clean Growth
Hydrogen technologies are viewed by policymakers and industry leaders as a cornerstone of the next generation of clean energy solutions. These technologies can store renewable energy, stabilize the grid, and decarbonize industrial processes that are difficult to electrify, such as steelmaking, cement, and refining.
A 2023 study commissioned by Natural Resources Canada found that a mature hydrogen economy could create up to 70,000 jobs nationwide by 2050, including positions in production, infrastructure, and clean technology development.
The Ontario government says the Hydrogen Innovation Fund will help position the province to capture a substantial share of those opportunities, particularly in manufacturing-intensive regions such as Sarnia-Lambton and the Greater Toronto Area.
“Ontario’s Hydrogen Hub in Sarnia-Lambton applauds the leadership of the Ontario government – and especially Minister Oosterhoff – as the build out of the low-carbon hydrogen economy and establishment of defined hydrogen hubs stand to benefit significantly from the support of the Hydrogen Innovation Fund,” said Matthew Slotwinski, CEO of the Sarnia-Lambton Economic Partnership. “The development of the at-scale low-carbon hydrogen economy starts with leveraging innovation to connect hydrogen producers and users, setting the stage for long-term economic growth, job creation, clean energy integration, and low-carbon diversification.”
Strengthening Ontario’s Competitive Edge
Industry stakeholders welcomed the province’s move to expand the HIF, describing it as a timely and necessary step to advance clean energy integration and industrial decarbonization.
“We applaud the Government of Ontario and Associate Minister Sam Oosterhoff for this important milestone in advancing Ontario’s hydrogen sector,” said Maike Althaus, Vice-President, Central Canada, Canadian Hydrogen Association. “The first phase of the Hydrogen Innovation Fund focused on integrating hydrogen into Ontario’s electricity and gas systems. With the 2025 HIF, the province is broadening its scope to include end-use applications that will drive innovation, strengthen competitiveness, and foster economic growth across Ontario’s key industries.”
The Independent Electricity System Operator (IESO), which administers the fund, also underscored hydrogen’s potential to leverage Ontario’s clean electricity grid as a platform for economic development.
“Our world-class electricity system is an asset that can be leveraged to create jobs, drive economic growth and support Ontario’s clean energy leadership,” said Chuck Farmer, Executive Vice-President of Power System Development at the IESO. “The province’s investment of $30 million into the Hydrogen Innovation Fund will do just that by accelerating projects that can grow our economy using low-carbon hydrogen produced here in Ontario by our reliable and affordable grid.”
Call for Applications and Future Outlook
The call for applications for both funding streams is now open and will close on February 11, 2025. Projects selected through this round are expected to play a key role in advancing the government’s Low-Carbon Hydrogen Strategy, first launched in 2022, and in implementing Ontario’s Energy for Generations plan.
Hydrogen currently accounts for a small portion of Ontario’s total energy use but could rise to as much as three per cent of total energy demand by 2050, according to provincial energy modelling. The government views this as a significant opportunity to build a new domestic energy market while reducing greenhouse gas emissions and strengthening energy security.
The province’s expanded Hydrogen Innovation Fund marks the latest in a series of investments under Ontario’s $191 billion, 10-year infrastructure plan, aimed at building the energy systems and industries that will support long-term economic resilience and environmental stewardship.
