Hydrogen’s role in the net-zero system is as a complement to electrification. It can decarbonize sectors that are hard to electrify directly, including heavy industry, long-haul transport, and industrial heat, and can store surplus clean electricity as a chemical fuel. Canada already produces roughly 4 Mt annually, but almost all of it is high-emission “grey” hydrogen used as an industrial feedstock rather than a clean energy carrier.
The sector’s central challenge is that infrastructure won’t scale without demand, and demand won’t scale without infrastructure. That loop is why low-carbon supply is minimal today (0.5 Mt) against an estimated 6 to 20 Mt needed by 2050.
Sparse production and distribution infrastructure and interrelated limited demand.
0.5 Mt today vs. 6–20 Mt needed by 2050.
High production/storage/delivery costs, uncertain investment case.
Hydrogen and methane leaks and monitoring gaps.
Limited water and electricity available for electrolysis.
Scaling of infrastructure for broader applications.
Emissions intensity of hydrogen produced.
Deployment of fuel cell vehicles and other end-use technologies.
Share of end-use energy from low-carbon hydrogen, ammonia or methanol.
Decarbonization option for sectors with few substitutes.
Domestic hydrogen value chain growth with fuel and technology exports.
Co-located production and demand sites.
Scores are grounded in the sources cited throughout each sector assessment, then reviewed by experts and industry stakeholders to confirm how each pathway elements criteria are ranked.
economic viability score
Economic Viability description
