As part of its low-carbon hydrogen strategy, Ontario established the Hydrogen Innovation Fund in February. The fund is investing $11 million (CAD 15 million) over the next three years to kickstart and develop opportunities for hydrogen to be integrated into Ontario’s clean electricity system, including hydrogen electricity storage, according to a statement from the Ontario government.
One of the nine project recipients is Atura Power, which will receive $3 million (CAD 4.1 million) to blend hydrogen with natural gas to produce electricity at Halton Hills Generating Station (HHGS), making it the largest electricity-based, grid-connected, low-carbon hydrogen blending project in Canada’s history, according to the statement. The Niagara Hydrogen Center will utilize excess water that would otherwise have been spilled over Niagara Falls to create clean electricity that will be used to produce clean hydrogen for the project.
“Natural gas generation continues to play a critical role, providing system reliability and acting as an enabler of renewable generation, helping us progress toward net zero. Blending green hydrogen from our Niagara Hydrogen Centre with natural gas at the Halton Hills Generating Station will allow us to produce cleaner electricity at an important and high-performing station."
The eight other projects receiving funding are two Capital Power projects, two York University projects, HydroMéga Services in Cochrane, Western University, Volta Energy in Toronto, and The Transition Accelerator in Hamilton.
“Our government is building new electricity generation and storage to power the next major international investment, the new homes we are building and industries as they grow and electrify”, Minister of Energy Todd Smith said. “Natural gas currently performs a critical role keeping the lights on during periods of peak demand, and we are investing now in new technologies like hydrogen that could help meet this demand going forward”.
“Today’s announcement builds upon our government’s low-carbon hydrogen strategy – a plan that diversifies our energy supply to keep energy costs down while also reducing greenhouse gas emissions”, Minister of the Environment, Conservation and Parks Andrea Khanjin said. “By investing in these innovative clean energy projects, Ontario is supporting economic growth and securing environmental benefits for future generations”.
The Hydrogen Innovation Fund aims to “test existing and emerging technologies with a view to objectively determine how hydrogen resources can support reliability, affordability and sustainability”, according to the website of the Independent Electricity System Operator (IESO) of Ontario.
The fund invests in projects no more than three years in length, funding up to a maximum of 50 percent of eligible project costs. The fund covers three project types: hydrogen production from electricity to explore how a hydrogen production facility can provide grid services while producing hydrogen for various end-uses; electricity generation from hydrogen, including co-firing hydrogen with natural gas in order to evaluate the impact of hydrogen blending on turbine efficiency and emissions reduction; and support for the development of the broader hydrogen economy, including exploring the feasibility of site-specific hydrogen conversions at different locations across the province, according to the website.
“Decarbonizing Ontario’s electricity system and economy will require contributions from new and emerging resources”, IESO President and CEO Lesley Gallinger said. “The IESO is looking forward to tracking the results of the Hydrogen Innovation Fund projects to determine hydrogen’s viability as a grid resource to support reliability, affordability and sustainability”.
The first six recipients of the Hydrogen Innovation Fund were Enbridge Gas in Markham, Emerald Energy from Waste Inc. in Brampton, two Carlsun Energy Solutions projects, Kinectrics, and The University of Windsor, according to an earlier statement.
