Ontario Launching New Round of Hydrogen Innovation Fund
November 5. 2025
The Ontario government 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 the eligibility criteria to support Energy for Generations, Ontario’s long-term energy roadmap to protect Ontario’s economy by building a resilient, secure and self-reliant energy sector that can power the most competitive economy in the G7.
“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.”
The expanded fund includes two streams: One for projects that integrate low-carbon hydrogen into Ontario’s electricity grid, and another for broader sector applications of hydrogen across transportation, manufacturing and heavy industry through creating hydrogen hubs, connecting hydrogen producers with end-users and switching existing hydrogen users to made-in-Ontario hydrogen. Together, these investments will help unlock hydrogen’s potential to drive innovation, create jobs and build a more competitive economy.
The criteria will also promote projects developed by Canadian companies to help strengthen Ontario’s economy and energy security. The expanded HIF responds to industry feedback for increased government support that recognizes the cross-sectoral value of hydrogen and reaffirms Ontario’s commitment to expanding a low-carbon hydrogen economy.
“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.”
Hydrogen technologies are uniquely suited to address gaps in the energy system that are difficult or costly to solve through electrification alone. By unlocking hydrogen’s full 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, in areas such as production, infrastructure, storage and clean technology development, while helping to reduce GHG emissions.
Supporting hydrogen innovation helps to deliver on the goals outlined in Energy for Generations, Ontario’s first-ever integrated energy plan, that recognizes hydrogen as a strategic resource that can complement other fuels and technologies to help meet growing energy demand, support industry and heavy transportation and provide reliable energy storage and generation capacity.
Quick Facts
- The call for applications for both streams will close on February 11th, 2026.
- Hydrogen is a versatile energy carrier that can be used broadly for transportation, industrial processes, and energy storage, among other uses.
- According to a whole-economy energy modelling study that was commissioned by the province, hydrogen demand could make up three per cent of total final energy demand in 2050 – a significant part of Ontario’s energy mix.
- The fund is administered by the province’s Independent Electricity System Operator, who held an engagement session on October 1st, 2025, on the program’s design and application guidelines.
- Ontario released its Low-Carbon Hydrogen Strategy in 2022. This strategy set out a vision for a thriving hydrogen economy, with concrete steps already taken to deliver on outcomes.
- Fifteen successful hydrogen projects were announced in October and November 2023, as part of the 2023 Hydrogen Innovation Fund, which provided $13.8 million in project funding. Details on those projects are available on the IESO website.
