Canada Must Treat Hydrogen as Strategic Asset

By: Beth Buckmaster and David Billedeau 
Published in the Hill Times on September 24, 2025 [Link]

Canada’s story has always been shaped by nation-building projects: railways that stitched provinces together, electricity grids that powered growth, oil and natural gas pipelines that carried our resources to market, and telecommunications networks that connected people. Hydrogen has significant potential to add to that story.

Hydrogen is a versatile, zero-emission fuel that can power vehicles, generate electricity, heat homes, and decarbonize heavy industry. It can also serve as long- and short-term energy storage, helping stabilize grids. Federal modelling shows that scaling a clean hydrogen economy could generate up to $50 billion in annual revenue by 2050 and support more than 350,000 good jobs across the value chain. In other words, hydrogen is not a niche solution; it is a transformational economic and environmental opportunity.

This opportunity spans every region—from British Columbia’s production hubs and Pacific access, Prairie-based innovation, and Ontario’s manufacturing base, to Quebec’s clean power and Atlantic export terminals. Indigenous, rural, and industrial communities all have a stake in its success. With global markets accelerating, Canada must act with scale, speed, and ambition or risk losing a once-in-a-generation opportunity.

As the Carney government embarks on its first nation-building projects and prepares its inaugural budget, Canada faces a pivotal moment—one where hydrogen must be part of the plan. The United States is retreating on clean energy while continuing to pressure Canada with tariffs. Meanwhile, Canada is aiming to accelerate its own transition and diversify export markets. In this context, hydrogen offers a unique advantage: it can boost competitiveness, unlock new trade opportunities, and position Canada as a global leader in clean energy.

The Canadian Hydrogen Association (CHA) has set out five priorities to ensure hydrogen is recognized not just as an environmental tool, but as a pillar of Canada’s economic and industrial strategies.

First, hydrogen must be fully integrated into Canada’s economic, industrial, and export strategies. It should be embedded in infrastructure, innovation, critical minerals, defence, workforce, and trade agendas. Integration must be deliberate and coordinated: hydrogen cannot be siloed as an “energy file” alone. Linking clean fuels to industrial decarbonization, trade competitiveness, and energy security would firmly position hydrogen within Canada’s vision for growth.

Second, Canada must strengthen its investment tools. The Clean Hydrogen Investment Tax Credit is vital, but it requires reform to remove regional inequities, broaden eligibility to include derivative fuels such as ammonia and methanol, and support the full value chain from production to distribution. Ensuring fair access across provinces and technologies will unlock the scale of investment needed to compete globally.

Third, the government must drive deployment at scale. Meeting existing hydrogen demand with low-carbon supply—and opening new markets in transport, marine, and heavy industry—will require bridging the cost gap between grey and clean hydrogen, streamlining approvals, and funding hub-scale projects that are investment-ready.

Fourth, Canada must build the infrastructure backbone. Refuelling corridors, storage terminals, marine bunkering facilities, and power applications are essential to connect production hubs to end-users and export markets. Without enabling infrastructure, Canada cannot fully capitalize on its production advantages or establish itself as a reliable global supplier.

Finally, investors and communities require long-term certainty. Stable carbon pricing, strong Clean Fuel Regulations, and robust “Buy Canadian” incentives will give industry the confidence to invest billions, while ensuring taxpayer-supported projects strengthen Canadian manufacturing and supply chains. With predictable policy signals, Canada can secure durable economic growth while delivering on climate and energy security goals.

Across the country, members of the Canadian Hydrogen Association are proving hydrogen’s potential to cut emissions, enhance energy security, create jobs, and boost competitiveness. Industry continues to invest and innovate; however, success depends on the federal government treating hydrogen as a true strategic asset. Hydrogen can drive our clean energy transition while creating prosperity nationwide. The opportunity is here, but only if we act with the ambition the future demands.

Beth Buckmaster is Vice President of Strategic Client Relations at Solestiss and Chair of the Board of the Canadian Hydrogen Association.

David Billedeau is President and Chief Executive Officer of the Canadian Hydrogen Association.