The Ontario government has announced a major investment of $30 million to launch a new round of the Hydrogen Innovation Fund (HIF), aimed at advancing clean hydrogen technologies that drive economic growth, job creation, and energy resilience. This new round doubles the funding from the previous phase and broadens eligibility to align with Energy for Generations, Ontario’s long-term energy roadmap designed to build a secure, self-reliant, and low-carbon energy future.
According to Associate Minister of Energy-Intensive Industries Sam Oosterhoff, expanding the HIF represents a strategic step to enhance Ontario’s competitive edge in the global hydrogen sector. The fund will support projects that attract private investment and create skilled jobs, positioning Ontario as a leader in the clean energy economy.
The newly expanded fund features two key streams. The first focuses on integrating low-carbon hydrogen into Ontario’s electricity grid, while the second supports hydrogen applications across transportation, manufacturing, and heavy industry. These initiatives aim to create hydrogen hubs, connect producers with users, and transition existing hydrogen consumers to made-in-Ontario hydrogen. The program’s design promotes projects developed by Canadian companies, reinforcing Ontario’s commitment to strengthening domestic innovation and energy independence.
Minister of Energy and Mines Stephen Lecce emphasized hydrogen’s dual potential—as a clean energy source and as a major economic driver capable of creating tens of thousands of jobs. Hydrogen technologies, he noted, can fill energy system gaps that are difficult to address through electrification alone, providing long-duration energy storage and helping reduce emissions in carbon-intensive sectors such as steel, cement, and refining.
A 2023 study by Natural Resources Canada estimated that a robust hydrogen economy could generate up to 70,000 jobs across Canada by 2050, including in production, storage, and clean technology sectors. In Ontario, hydrogen development supports the Energy for Generations strategy, which envisions hydrogen as a complementary resource to traditional fuels—helping meet rising energy demand, support industry, and power heavy transport.
The call for applications under both HIF streams closes on February 11, 2026. The fund will be administered by the Independent Electricity System Operator (IESO), which has already engaged stakeholders on the program’s design. The initiative builds on Ontario’s Low-Carbon Hydrogen Strategy (2022) and follows the success of the 2023 Hydrogen Innovation Fund, which allocated $13.8 million to fifteen projects.
Local and industry leaders welcomed the announcement, praising the province’s leadership in building a low-carbon hydrogen economy. Representatives from the Sarnia-Lambton Economic Partnership, Canadian Hydrogen Association, and IESO highlighted the fund’s role in connecting producers and end-users, spurring innovation, and accelerating Ontario’s transition toward clean, sustainable energy and long-term economic growth.
