Ontario Launching New Round Of Hydrogen Innovation Fund

SARNIA – The Government of Ontario is investing $30 million to launch a new round of the Hydrogen Innovation Fund (HIF), supporting projects that unlock hydrogen’s potential to drive economic growth, create good-paying jobs, and strengthen Ontario’s position as a world leader in the clean energy economy. This increased investment doubles the funding from the previous round and expands eligibility to support Energy for Generations, Ontario’s long-term energy roadmap.

Sam Oosterhoff, Associate Minister of Energy-Intensive Industries, said, “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.”

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The expanded fund includes two streams: one for projects integrating low-carbon hydrogen into Ontario’s electricity grid, and another for broader sector applications across transportation, manufacturing, and heavy industry—creating hydrogen hubs, connecting producers with end-users, and supporting the use of made-in-Ontario hydrogen.

The fund also promotes projects developed by Canadian companies to strengthen Ontario’s economy and energy security. The expanded HIF responds to industry feedback for greater government support that recognizes hydrogen’s cross-sectoral value and reaffirms Ontario’s commitment to building a low-carbon hydrogen economy.

Stephen Lecce, Minister of Energy and Mines, stated, “Hydrogen has potential as both a clean energy resource and a major economic play that can create tens of thousands of jobs.”

Hydrogen technologies are suited to address energy system gaps that are difficult or costly to solve through electrification alone. By unlocking hydrogen’s potential, Ontario can better manage peak electricity demand, provide long-duration energy storage, and reduce emissions in sectors like steel, cement, and refining. According to a 2023 study commissioned by Natural Resources Canada, a robust hydrogen economy could create up to 70,000 jobs across Canada by 2050, including in Ontario.

The fund is administered by the province’s Independent Electricity System Operator (IESO), which held an engagement session on October 1, 2025, on the program’s design and application guidelines. Ontario released its Low-Carbon Hydrogen Strategy in 2022, setting out a vision for a thriving hydrogen economy with concrete steps toward implementation.

Matthew Slotwinski, CEO of the Sarnia-Lambton Economic Partnership, said, “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 and clean energy integration.”

Maike Althaus, Vice-President, Central Canada, Canadian Hydrogen Association, added, “The province is broadening its scope to include end-use applications that will drive innovation and foster economic growth across Ontario’s key industries.”

Chuck Farmer, Executive Vice-President of Power System Development, Independent Electricity System Operator, said, “The province’s investment of $30 million into the Hydrogen Innovation Fund will accelerate projects that can grow our economy using low-carbon hydrogen produced here in Ontario by our reliable and affordable grid.”