Canada
green hydrogen market is expected to grow impressively through 2028 due to the
abundant renewable energy resources. In 2021, over 1.3 petawatt hours of
energy was produced from renewable sources in North America. Green
hydrogen, also known as renewable hydrogen or clean hydrogen, has emerged as a
potential game-changer in the quest for a sustainable and low-carbon future.
This versatile energy carrier is produced by electrolyzing water using
renewable electricity, resulting in hydrogen gas and oxygen. As the world
transitions away from fossil fuels and aims to decarbonize various sectors,
green hydrogen holds tremendous promise due to its environmental benefits,
energy storage capabilities, and potential to revolutionize multiple
industries. The production of green hydrogen involves the electrolysis of
water, which separates hydrogen and oxygen molecules using electricity. This
process can be achieved through two primary methods: alkaline electrolysis and
proton exchange membrane (PEM) electrolysis. Alkaline electrolysis is a mature
technology that has been commercially available for several decades, while PEM
electrolysis is a newer and more efficient process.
The
critical factor that distinguishes green hydrogen from other forms of hydrogen
production, such as gray or blue hydrogen, is the source of electricity used
during electrolysis. Green hydrogen is produced exclusively using renewable
energy sources like solar, wind, or hydropower, making it a truly sustainable
option with zero carbon emissions. The widespread deployment of renewable
energy infrastructure is crucial for the large-scale production of green
hydrogen.
One
of the most promising applications of green hydrogen is its use as a fuel for
various modes of transportation, including cars, buses, trucks, and even ships
and airplanes. Hydrogen fuel cells offer high energy density, fast refueling
times, and long driving ranges, making them a viable alternative to
conventional fossil fuel vehicles. Additionally, hydrogen-powered vehicles emit
only water vapor, eliminating harmful greenhouse gas emissions and reducing air
pollution.
While
the potential of green hydrogen is immense, several challenges must be
addressed to accelerate its widespread adoption. The primary challenges include
the high cost of electrolysis, the need for extensive renewable energy
infrastructure, and the lack of a comprehensive regulatory framework.
Governments, industries, and research institutions are working collaboratively
to overcome these barriers by investing in research and development,
implementing supportive policies, and fostering international cooperation.
Canada,
with its abundant renewable energy resources, strong commitment to
sustainability, and ambitious climate goals, is emerging as a frontrunner in
the global green hydrogen market. Green hydrogen, produced through the
electrolysis of water using renewable electricity, offers a transformative
solution for decarbonizing various sectors of the economy.
Abundant
Renewable Energy Resources are Driving Market Growth
Canada
is blessed with vast renewable energy resources, making it an ideal candidate
for green hydrogen production. The country boasts a diverse mix of renewable
sources, including hydroelectric power, wind energy, solar power, and biomass.
With its extensive coastline, tidal and offshore wind energy also hold
significant potential. These resources provide a reliable and sustainable
supply of electricity for electrolysis, forming the backbone of Canada's green
hydrogen industry.
Increasing
Demand from Various End Use Industries are Driving Market Growth
Canada's
green hydrogen can play a crucial role in decarbonizing the transportation
sector. Hydrogen fuel cell vehicles offer a zero-emission alternative,
especially for long-haul trucking, public transportation, and heavy-duty
applications. The country has already made progress in deploying hydrogen fuel
cell buses and is exploring partnerships and initiatives to expand the adoption
of hydrogen-powered vehicles.
Canada's
large-scale green hydrogen production can address the intermittency of
renewable energy sources, supporting grid stability and energy storage. By
converting excess renewable energy into hydrogen during periods of low demand,
Canada can store the energy for later use, mitigating the challenges posed by
intermittent generation. This enables the optimization of renewable energy
utilization and grid balancing.
The
industrial sector, including steel, cement, and chemicals manufacturing, can
benefit greatly from green hydrogen. By replacing fossil fuels with hydrogen as
a feedstock or energy source, these industries can significantly reduce their
carbon footprint. Canada's strong industrial base and commitment to sustainable
practices make it an ideal market for green hydrogen deployment in the industrial
sector.
Supportive
Government Policies are Driving Market Growth
The
Canadian government has committed significant investments to support the
development and deployment of clean technologies, including green hydrogen.
Funding programs such as the Strategic Innovation Fund and the Net Zero
Accelerator provide financial support for research, development, and
commercialization of green hydrogen projects. The government also encourages
collaboration between industry, academia, and research institutions to drive
innovation and knowledge-sharing.
Several
provinces in Canada have taken proactive steps to foster the growth of the
green hydrogen market. For example, British Columbia has established a Hydrogen
Readiness Strategy and is exploring the potential for hydrogen production and
utilization in various sectors. Alberta has also recognized the potential of
green hydrogen and is developing a hydrogen roadmap to facilitate its adoption
in the province.
Canada
is actively engaging in international partnerships and collaborations to
accelerate the development of the green hydrogen market. The country is part of
the International Partnership for Hydrogen and Fuel Cells in the Economy,
working alongside other countries to share best practices, promote research and
development, and create a global hydrogen market.
Collaboration
between industry stakeholders, research institutions, and government agencies
is crucial for driving innovation and accelerating the growth of the green
hydrogen market.
Major
Challenges faced by Canada Green Hydrogen Market
Currently,
the electrolysis process requires substantial amounts of electricity, and
renewable energy infrastructure needs further development and expansion to meet
the growing demand. As technology advances and economies of scale are achieved,
the cost of electrolyzers and renewable energy installations is expected to
decline, making green hydrogen more economically competitive.
To
establish a thriving green hydrogen market, it is essential to scale up
production and integrate the hydrogen supply chain effectively. This involves
the establishment of hydrogen production facilities, transportation and
distribution infrastructure, and end-use applications. Developing a robust
supply chain requires collaboration between industry players, governments, and
stakeholders to ensure seamless connectivity and address logistical challenges.
The
absence of a comprehensive regulatory framework and harmonized standards poses
a significant challenge to the green hydrogen market in Canada. Clear and
consistent regulations are required to ensure safety, provide a level playing
field for market participants, and instill investor confidence. Regulations
governing hydrogen production, transportation, storage, and usage need to be
developed and implemented, addressing issues such as safety protocols,
permitting processes, and liability frameworks.
The
significant upfront investment required for green hydrogen projects is another
challenge faced by the market. While governments provide financial support
through funding programs, additional private sector investment is crucial.
Attracting private investment in green hydrogen projects requires a stable and
predictable policy environment, clear market signals, and the establishment of
viable business models. Public-private partnerships and innovative financing
mechanisms can play a pivotal role in mobilizing capital for the sector.
Recent
Trends and Developments
The
Canadian government has taken proactive steps to support the growth of the
green hydrogen market through various policy initiatives and funding programs.
In December 2020, the federal government released its Hydrogen Strategy for
Canada, outlining a roadmap to develop a domestic hydrogen industry. The
strategy aims to leverage Canada's renewable energy resources and establish a
comprehensive regulatory framework to facilitate the deployment of green
hydrogen projects. Additionally, funding programs such as the Strategic
Innovation Fund and the Net Zero Accelerator provide financial support for
research, development, and commercialization of green hydrogen technologies.
Canada
has been actively engaging in international partnerships and collaborations to
accelerate the development of the green hydrogen market. In 2021, Canada became
a member of the International Partnership for Hydrogen and Fuel Cells in the
Economy, joining efforts with other countries to advance research, share best
practices, and create a global hydrogen market. Such collaborations foster
knowledge-sharing, enable access to international markets, and support the
scaling up of green hydrogen projects.
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Market
Segmentation
Canada
green hydrogen market is segmented based on technology, application, end user
industry, and region. Based on technology, canada green hydrogen market is
categorized into proton exchange membrane electrolyzer, alkaline electrolyzer,
and solid oxide electrolyzer. Based on application, canada green hydrogen
market is divided into power generation, transport, and others. Based on end
user industry, canada green hydrogen market is segmented into food &
beverages, medical, chemical, petrochemicals, glass, and others. Based on
region, Canada green hydrogen market is divided into Quebec, Ontario, Alberta,
British Columbia, Saskatchewan & Manitoba, and rest of Canada.
Market
Players
Ballard
Power Systems, Hydrogenics Corporation, Xebec Adsorption Inc, Entegris Canada
Inc., Loop Energy, HTEC (Hydrogen Technology & Energy Corporation),
Enbridge Inc., Air Liquide Canada, Canadian Hydrogen and Fuel Cell Association
(CHFCA), and Proton Technologies Corporation are some of the key players of the
Canada green hydrogen market.
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Attribute
|
Details
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Base Year
|
2022
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Historic Data
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2018 – 2021
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Estimated
Year
|
2023
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Forecast Period
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2024 – 2028
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Quantitative
Units
|
Revenue
in USD Million, Volume in Units, and CAGR for 2018-2022 and 2023-2028
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|
Report Coverage
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Revenue
forecast, company share, competitive landscape, growth factors, and trends
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Segments Covered
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Technology
Application
End Use
Industry
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Regional Scope
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Quebec,
Ontario, Alberta, British Columbia, Saskatchewan & Manitoba, Rest of
Canada
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Key Companies
Profiled
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Ballard Power Systems, Hydrogenics
Corporation, Xebec Adsorption Inc, Entegris Canada Inc., Loop Energy, HTEC
(Hydrogen Technology & Energy Corporation), Enbridge Inc., Air Liquide
Canada, Canadian Hydrogen and Fuel Cell Association (CHFCA), Proton
Technologies Corporation
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|
Customization
Scope
|
10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
|
|
Pricing and Purchase
Options
|
Avail
customized purchase options to meet your exact research needs. Explore purchase
options
|
|
Delivery Format
|
PDF and Excel through Email (We can also provide the editable version
of the report in PPT/Word format on special request)
|
Report
Scope:
In this report,
Canada green hydrogen market has been segmented into the following categories,
in addition to the industry trends, which have also been detailed below:
- Green Hydrogen Market, By
Technology:
- Proton Exchange Membrane
Electrolyzer
- Alkaline Electrolyzer
- Solid Oxide Electrolyzer
- Green Hydrogen Market, By
Application:
- Power Generation
- Transport
- Others
- Green Hydrogen Market, By End Use
Industry:
- Food & Beverages
- Medical
- Chemical
- Petrochemicals
- Glass
- Others
- Green Hydrogen Market, By Region:
- Quebec
- Ontario
- Alberta
- British Columbia
- Saskatchewan & Manitoba
- Rest of Canada
Competitive
landscape
Company
Profiles: Detailed
analysis of the major companies present in Canada green hydrogen market.
Available
Customizations:
With the given
market data, TechSci Research offers customizations according to a company’s
specific needs. The following customization options are available for the
report:
Company
Information
- Detailed analysis and profiling of
additional market players (up to five).
Canada green
hydrogen market is an upcoming report to be released soon. If you wish an early
delivery of this report or want to confirm the date of release, please contact
us at [email protected]