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Budget 2022 is Good News for Canada’s Hydrogen and Fuel Cell Sector

Apr, 8 2022

VANCOUVER — The Canadian Hydrogen and Fuel Cell Association (CHFCA) applauds the government’s Budget 2022 announced by the Honourable Chrystia Freeland, Minister of Finance yesterday.  The budget introduces measures that will support investment in the entire clean hydrogen supply chain, including production, hydrogen storage, distribution, dispensing and hydrogen applications, along with related skills development and innovation.  This will result in jobs, exportable technologies and meaningful greenhouse gas reductions, leveraging Canada’s significant hydrogen expertise while helping Canadian industry to decarbonize efficiently and cost-effectively.

The budget builds on the federal government’s efforts to implement the comprehensive set of policy and funding tools laid out in the Hydrogen Strategy for Canada that will attract investment in clean hydrogen technologies that are essential to achieving Canada’s net-zero 2050 commitment.

An example is the announced $547.5 million new purchase incentive program for medium- and heavy-duty ZEVs to help trucking companies purchase zero-emission trucks, including fuel cell electric trucks that provide the range, payload and fast-fill capability they may need to maintain the efficiency of their operations.  This is complemented by the investment tax credit of up to 30% on clean hydrogen, the support for hydrogen hubs and the funding for zero emission transport infrastructure including hydrogen refueling infrastructure that will stimulate private sector investment in the hydrogen production and distribution infrastructure needed to provide those truckers with clean, cost-effective hydrogen fuel.

“We look forward to working with the relevant ministries to clearly articulate how the announced measures support hydrogen sector investment,” says Mark Kirby, President and CEO of the CHFCA.  “Investors, OEMs and energy companies worldwide are deciding how and where to make billion-dollar investments in hydrogen energy deployments.  The budget measures, combined with Canada’s natural advantages in low-cost energy, plus the world-leading skills of our hydrogen and fuel cell sector can help Canada leverage our capabilities to capture a fair share of the opportunity.”

Other notable measures in the federal budget include:

  • Introduction of a sales mandate to ensure that at least 20 per cent of new light-duty vehicle sales will be zero-emission vehicles (ZEVs) by 2026. The market share is expected rise to at least 60 per cent by 2030 and 100 per cent by 2035.
  • $1.7 billion over five years, starting in 2022-23, with $0.8 million in remaining amortization, to Transport Canada to extend the Incentives for Zero-Emission Vehicles (iZEV), including fuel cell electric vehicles.
  • A $15 billion “Canada Growth Fund” that will be established to attract billions of dollars in private sector investment to help meet national economic policy goals.
  • A new $1 billion “Canada Innovation and Investment Agency” focused on innovation and investment that will work with new and established Canadian industries and businesses to provide investment support
  • A broadened role for the Canada Infrastructure Bank (CIB) to invest in private sector-led infrastructure projects that allow the CIB to invest in small modular reactors; clean fuel production; hydrogen production, transportation and distribution; and carbon capture, utilization and storage.

To learn more about the Federal Budget Strategy, please visit here.


About the Canadian Hydrogen and Fuel Cell Association (CHFCA)

The Canadian Hydrogen and Fuel Cell Association (CHFCA) is a national sector association that supports industry, academia, government agencies, financial organizations and other stakeholders focused on hydrogen and fuel cell technologies and products. As the collective voice of Canada’s world-leading hydrogen and fuel cell sector, the CHFCA’s mission is to strengthen Canadian leadership, raise awareness of the benefits of the technology, and accelerate the adoption of its members’ products and services in Canada and abroad.  The CHFCA currently has more than 160 members across Canada and provincial branches and affiliates in British Columbia, Alberta, Ontario and Quebec. The CHFCA can be followed on LinkedIn at @CHFCA, Twitter at @PoweringNow and visited at

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