Ontario’s Low-Carbon Hydrogen Strategy

5. Supporting Hydrogen Storage and Grid

1. Launching the Niagara Falls Hydrogen Integration Pilots: Ontario will ask the Production Pilot: Atura Power proposes Independent Electricity System Operator to produce hydrogen in Niagara Falls (IESO) to report back on program options using electricity from the Sir Adam Beck to support hydrogen storage and grid hydroelectric generating station as part of its integration pilot projects. grid regulation services to Ontario’s electricity system. The government filed a regulatory 7

6. Transitioning Industry Through the Use of Ontario is ready to do our part so we can attract Low-carbon Hydrogen: Ontario is taking investment and good-paying jobs in science, immediate steps to support the efforts of technology, engineering and the skilled trades. industry to phase out their use of coal by transitioning to low-carbon processes and Working together with Ontario businesses and hydrogen-ready equipment. For example, industrial partners, the federal government, Ontario is contributing $500 million in municipalities, Indigenous communities, academic support to the $1.8 billion project by institutions and other key stakeholders, we are ArcelorMittal Dofasco at its Hamilton facility going to connect Ontario with global markets to to replace coal-fed furnaces with a hydrogen- develop an economically sustainable low-carbon ready electric arc furnace (EAF). This project hydrogen sector. will reduce GHG emissions by about three million tonnes annually. By leveraging our talent, infrastructure and resources, we will seize this opportunity and

7. Consulting on an Ontario Carbon unleash our fullest potential by becoming a world- Sequestration and Storage Regulatory class hub for low-carbon hydrogen innovation. Framework: Ontario is proposing changes to the Oil, Gas and Salt Resources Act and the Mining Act frameworks to enable carbon storage activities on Crown land. Carbon sequestration offers the opportunity to produce low-carbon hydrogen using natural gas.

8. Supporting Ongoing Hydrogen Research: Ontario is supporting two independent hydrogen research projects in partnership with Natural Resources Canada to advance hydrogen development in the province. 8 Introduction and Need for Action I. What is Hydrogen electricity generated from carbon-free nuclear or hydroelectric sources. Hydrogen is the first element on the periodic Low-carbon hydrogen (e.g., made from clean table. It is colourless and odourless and makes electricity) currently represents only 0.5 per up about 75 per cent of mass in the universe. But cent of the global market share.1 Globally, energy is required to break the bond it has with electricity-based hydrogen is expected to be cost- other elements to release it from the materials competitive with hydrogen made from natural where it is naturally found, for example in water gas by 2030 due to economies of scale and (H2O), to create pure hydrogen gas (H2). technological improvements.2 There are various feedstocks and ways to “break Currently, producing low-carbon hydrogen is the bonds” to make hydrogen such as with costly in Ontario in part because of the cost electricity, fossil fuels, renewable fuels and difference between producing hydrogen using biomass (for example forestry and crop residues). electricity versus using natural gas. Given that Depending on how it is produced, hydrogen has specific challenge, and the opportunity of the potential to be a low-carbon fuel. promoting the production and use of low-carbon hydrogen to help decarbonize our energy system, Globally, most hydrogen is made from natural Ontario is interested in exploring technologies gas through a process called steam methane and business models that can improve cost- reformation, which is currently the cheapest competitiveness of producing low-carbon way to make hydrogen but has a higher carbon hydrogen. footprint. Hydrogen made from natural gas could potentially be paired with carbon capture, Hydrogen is a proven safe form of fuel and utilization and storage (CCUS) to keep most of the subject to the same strict standards of safety as carbon dioxide from its production from entering other gaseous fuels in Ontario. In fact, some of the atmosphere. Hydrogen made from clean hydrogen’s properties make it safer to handle electricity or biomass results in zero or near-zero and use than other fuels. According to the U.S. greenhouse gas (GHG) emissions over its lifecycle. Department of Energy, hydrogen is non-toxic, This is relevant in Ontario since our world-class and because hydrogen is much lighter than air, it electricity grid is one of the cleanest, with most dissipates rapidly when it is released, allowing for relatively rapid dispersal of the fuel in case of a leak.3

1. Wood Mackenzie, 2020.

2. IHS Markit, 2020.

3. U.S. Department of Energy, Safe Use of Hydrogen 9 and cost-effectiveness reasons, different low- carbon technologies are better suited for specific Hydrogen Terminology applications in the near term. In some cases, Hydrogen is often referred to as green, blue or electrification makes sense; in others, clean grey: fuels will provide the flexibility needed to abate emissions. • Green hydrogen is made using low-carbon sources like electricity from Ontario’s The province’s Made-in-Ontario Environment Plan grid or renewable organic material (i.e., speaks to the important role that hydrogen can biomass). play as a low-carbon fuel that can support low- • Blue hydrogen is made from natural carbon vehicle adoption (e.g., public transportation, gas with carbon capture, utilization and forklifts, heavy-duty trucks), decarbonization of storage. space and water heating for homes and businesses • Grey hydrogen is made from natural gas. and helping industry to decarbonize their processes and meet compliance obligations under Ontario’s Low-carbon hydrogen refers to the smaller Emissions Performance Standards program. carbon footprint of the hydrogen production method compared to other methods and Since 2018, Ontario has already embarked on a includes blue and green hydrogen. wide range of initiatives that include low-carbon technologies: • Lowering the carbon footprint of industrial processes such as reducing the use of II. Seizing the Opportunity industrial coal in the steel industry; • Introducing industrial Emissions Companies across the globe are putting capital Performance Standards; towards reducing industrial emissions, shifting to • Building zero-emission electric vehicles; zero-emission transportation vehicles and finding • Developing Canada’s first grid-scale small new low-carbon ways of heating our homes and modular reactor and investigating future businesses. Addressing climate change by lowering hydroelectric opportunities in Ontario’s our GHG emissions presents Ontario with new North; opportunities for economic development rooted • Integrating more electricity storage and in the emerging global demand for low-carbon and distributed electricity generation resources net zero. into the provincial electricity grid; Meeting climate change targets and reducing • Supporting new transmission infrastructure overall GHG emissions is a challenge for all to connect more businesses to Ontario’s jurisdictions. Ontario is committed to action on clean grid; climate change, including reducing GHG emissions • Blending renewable content into gasoline, to 30 per cent below 2005 levels by 2030. diesel and natural gas; and There are a number of technologies and pathways to help Ontario meet its targets. For practical 10 • Increasing production of biogas and time. We will continue to closely collaborate with renewable natural gas for space and the private sector, academics, municipalities and water heating, transportation and other industry to refine our actions and advocate the applications. federal government for investment. We will leverage Ontario’s existing advantages and work within the Ontario is also leveraging and maximizing the broader framework that is being created on the province’s existing energy infrastructure to ensure national level. successful and cost-effective application of clean technologies across the province. This document sets the stage. It lays the foundation As we cast an eye to the future, clean fuels like that will help Ontario create the right climate for low-carbon hydrogen present an opportunity to businesses to take the lead. expand Ontario’s clean energy advantage, remain a leader in manufacturing and meet climate and clean energy goals. Ontario already has a strong foundation to grow Ontario’s low-carbon hydrogen economy. Through this strategy, we will showcase opportunities and actions across government and outside of it that are helping to build momentum and support for Ontario’s hydrogen economy in the near term and into the future. III. Ontario’s Hydrogen Economy – Setting the Stage Ontario has conducted extensive consultations for more than a year in developing Ontario’s Low- Carbon Hydrogen Strategy, including hearing from industry, academia, environmental groups, Indigenous communities and the public. We have a lot more work to do. Growing our low-carbon hydrogen sector in Ontario will take 11 Consultation to Develop Ontario’s Low-Carbon Hydrogen Strategy Ontario engaged in several types of targeted and broader public consultation on low-carbon hydrogen to help inform the development of Ontario’s Low-Carbon Hydrogen Strategy: • Clean Technology Sector Engagement: As part of the Ontario Jobs and Recovery Committee’s work, the government consulted with the clean technology sector, including hydrogen stakeholders, in spring 2020. The purpose was to understand COVID-related disruptions and how government could support the sector to continue to grow and prosper beyond the immediate recovery. • Low-Carbon Hydrogen Discussion Paper: The government posted a discussion paper to the Environmental Registry of Ontario for public consultation in fall 2020. The purpose of the discussion paper was to begin a dialogue and seek input to better understand the needs of the sector, the challenges of supporting a complex hydrogen market, and ways to enable the private sector to expand adoption of hydrogen and support regional growth. • Stakeholder Webinars: Ontario hosted two webinars in January 2021 to broaden the reach and obtain additional feedback from stakeholders, and shared information with Indigenous communities. Ontario received 145 comments from 140 organizations and individuals on the hydrogen discussion paper, including comments from industry, academia, environmental groups and the public. • Hydrogen Strategy Working Group: Ontario established the Hydrogen Strategy Working Group that met nine times from February to June in 2021 and was made up of 23 industry and academic experts who provided advice on how to use hydrogen across various sectors and help Ontario compete in the global hydrogen market. 12 PROVINCIAL INTERESTS The Case for Low-Carbon Hydrogen I. Environment and Natural Resources Canada (NRCan) modelling shows that hydrogen could make up about 30 per Economy cent of the country’s fuels and feedstock by 2050, create about 350,000 jobs and remove up to 190 Using hydrogen as a fuel and feedstock (i.e., raw megatonnes of GHG emissions per year, with both material used for industrial processes) has re- domestic and international market opportunities.4 emerged as an exciting and potential long-term way to address climate change while providing By 2050, Ontario’s share of these projected clean energy and creating opportunities for benefits could include over 100,000 jobs and GHG economic growth. This is especially important emissions reductions of 50 megatonnes per year, since in 2019, about 75 per cent of Ontario’s according to preliminary estimates. This reduction GHG emissions came from energy usage (such as in GHG emissions would be equivalent to about for transportation, buildings and industry) and a quarter of the province’s 2005 emissions or about 15 per cent from industrial processes and removing 15 million cars off the road. product use. While electrification may provide a low-carbon alternative for some applications, hydrogen could be that alternative for others. To take advantage of the potential of low-carbon hydrogen, we need to act now to scale up existing technologies and encourage investment. Many countries and subnational jurisdictions around the world have established or are creating plans to support market ramp-up of low-carbon hydrogen to help address climate change, secure their energy supply and support economic growth. In recent years, Canada and a number of other countries and regions, including Germany, the United States, Australia, the European Union, Japan and Spain and jurisdictions like British Columbia, Alberta, California and New South Wales, Australia have issued hydrogen strategies or plans. Worker on Bruce Power’s Turbine Floor.

4. Hydrogen Strategy for Canada, p. 69. 13 II. Low-Carbon Hydrogen hydrogen. Low-carbon electricity (e.g., nuclear, hydroelectric, wind, solar) can be used for Supply Chain electrolysis to produce low-carbon hydrogen or biomass and renewable natural gas can be Production converted into hydrogen through processes such as gasification and pyrolysis. This is called “green” Energy is needed to separate hydrogen from hydrogen. other elements to create pure hydrogen gas. Today, most hydrogen is produced using natural Using electricity generated from non-emitting gas through a process called steam methane sources to produce hydrogen may also help with reformation, which results in a more carbon the affordability of electricity in Ontario. For intensive hydrogen gas. This is often referred example, increasing electricity demand during off- to as “grey” hydrogen. Lower-carbon hydrogen peak hours when demand for electricity is lowest can be produced from natural gas using steam provides a new customer base for Ontario’s low- methane reformation that incorporates Carbon carbon electricity, allowing existing system costs Capture Utilization and Storage (CCUS) to reduce to be shared across a large consumption base the carbon emissions associated with hydrogen production. This is often referred to as “blue” PRODUCTION INPUTS PRODUCTION PROCESS OUTPUTS Electrolysis Water & Electricity Low-Carbon Hydrogen Gasification & Pyrolysis Gas Biomass Carbon Capture Use & Storage Carbon Steam Methane Intensive Reformation Hydrogen Natural Gas Gas 14 Storage and Distribution Once produced, hydrogen can be stored in STORAGE gaseous form in high pressure cylinders and in liquid form in insulated tanks. It can also be stored in gaseous form in natural gas pipelines, salt caverns and depleted reservoirs. It can then be transported in tanks on trucks, trains and ships or transmitted or distributed through the existing Natural Gas Grid Salt Cavern natural gas system or dedicated pipelines. Ontario is currently home to one of the largest natural gas storage facilities in North America, Depleted Reservoirs Cylinder & Wells referred to as the Dawn Hub, which is located in southwestern Ontario. Ontario’s unique Dawn Hub is also the second most physically traded natural gas hub in North America. The Dawn Hub is a series of underground DISTRIBUTION depleted cavernous natural gas reservoirs that are filled each summer when demand for natural gas is low and natural gas is cheaper and discharged in the winter to serve increased heating demand. This allows optimum utilization of pipeline capacity into Ontario, lowers natural gas prices for Pipeline Truck Ontario families and businesses, and ensures the province has the energy it needs throughout the winter. Each year Ontario stores approximately 35 per cent of its total winter natural gas demand in Train Ship the Dawn Hub storage facilities. In a similar manner, Ontario’s geology may provide opportunities for large scale low-carbon Fueling Station hydrogen production or storage. Advancement of carbon dioxide (CO2) storage opportunities may allow for industrial producers of hydrogen (e.g., petroleum refiners) to use natural gas to manufacture blue hydrogen by capturing and sequestering the CO2 emissions or use the local geology to provide significant hydrogen storage capabilities. 15 Sudbury General area of saline aquifers with CO2 storage potential and existing natural gas storage in Ontario Ottawa Lake Huron Kingston Oshawa Toronto Lake Ontario Ontario’s Dawn Hub Natural Gas Underground Storage Facility Windsor E rie L ake Source : Geological Sequestration of Carbon Dioxide: A Technology Review and Analysis of Opportunities in Ontario, Ontario Ministry of Natural Resources, 2007. In 2007, a review of sequestration opportunities as working on codes and standards for the storage for CO2 in Ontario undertaken by the Ontario and distribution of hydrogen. Ministry of Natural Resources suggested that, from a geological perspective, the most suitable Usages geology for CO2 storage may be located in an area At present, the main uses for hydrogen in of Southern Ontario underlain by sandstones that Ontario are in petroleum refineries and for act as saline aquifers. fertilizer production. Additionally, at least two large companies in Ontario – Canadian Tire and Ontario is engaged with the federal government Walmart – are using hydrogen-powered forklifts to advance work under the federal Hydrogen in their warehouses because they are already cost Strategy for Canada in collaboration with other competitive when operated for 24 hours a day. provincial and territorial governments. This Since hydrogen-powered forklifts only emit water, includes research to better understand Ontario’s they support indoor air quality for workers. This opportunities for underground CO2 storage as well equipment has also improved productivity and 16 reduced greenhouse gas emissions. Hydrogen could have applications to decarbonize heavy industry. For instance, hydrogen could be There are several uses where low-carbon used to remove oxides from iron ore (instead of hydrogen could replace natural gas, diesel, coke or coal in a blast furnace) in steelmaking. gasoline, coal or high-carbon hydrogen. It can Hydrogen would support the province’s initiatives be converted to electricity through a fuel-cell related to the phase-out of industrial coal and in electric vehicles to power trucks and heavy the government’s support for clean steelmaking machinery. It can be used by industry as fuel for investments. industrial processes or as feedstock to produce other products like fertilizer, ammonia, renewable Major transportation routes could be leveraged diesel or refinery products. It can also be used to support the development of hydrogen to create low or carbon-free heat for buildings transportation corridors that provide demand and communities, and for large scale long-term nodes for Ontario hydrogen production. electricity storage and balancing services to Low-carbon hydrogen use in these applications can complement other low-carbon fuels and technologies such as battery electric vehicles, END-USES heat pumps and renewable fuels like renewable natural gas. Industry Transportation (feedstock, fuel) (fuel cell fuel) Electricity Buildings & (storage, grid Communities (fuel) balancing) support the electricity grid (i.e., helping adjust to real-time variations in electricity supply and demand). There is already a pilot project being led by Enbridge Gas and Cummins to inject hydrogen into natural gas pipelines in Markham, adding up to 2 per cent hydrogen by volume into the gas stream for 3,600 customers. 17 III. Energy Diversity and can also support continued energy diversity in a low-carbon Ontario. Energy diversity is a key advantage of Ontario’s For example, low-carbon hydrogen can serve energy sector contributing to its reliability, as a complementary fuel source in the evolving flexibility and resilience. transportation sector. By 2030, it is expected that one out of every three automobiles sold will be Ontario’s clean electricity grid is powered primarily electric. Ontario’s automotive sector is a key part of by a combination of nuclear, hydroelectric, other that transformation. renewable electricity and natural gas, providing reliable and flexible electricity supply from a Hydrogen fuel cell vehicles have attracted interest, diversity of sources. Similarly, Ontario’s broader particularly for heavy-duty vehicle applications. For energy system (i.e., supporting transportation, example, hydrogen fuel cells tend to be favourable industrial, home heating and other applications) for long-distance trucking applications given their includes a diverse mix of fuels such as natural gas, comparability in range and fueling times with petroleum fuels and biofuels. Different fuel sources conventional diesel trucks. Hydrogen fuel cells also and energy solutions make sense in different offer a smaller onboard battery pack compared to circumstances. A diverse energy mix allows end- battery-electric vehicles and can support increased users to find solutions that best meet their needs. payload capacity. Hydrogen fuel cell applications may be more easily scalable to fleet and long-haul Low-carbon hydrogen is an important part of operations, such as transit buses, transport trucks, Ontario’s path to decarbonizing its energy system ships and trains, allowing for more efficient use of energy infrastructure. Low-carbon hydrogen fuel cell powered vehicles can also complement transportation vehicles powered by lower-carbon ethanol and bio-based diesel blends. In this way, low-carbon hydrogen contributes to the diversity of transportation fuel options in Ontario, promoting energy diversity and resilience. Low-carbon hydrogen can also be used in a complementary way to renewable natural gas (RNG), another low-carbon fuel that is critical to meeting the province’s environmental goals. RNG is an important driver of economic growth in rural communities, generating value through organic waste recovery in Ontario’s agrifood sector. As identified in the Made-in-Ontario Environment Plan, RNG and hydrogen can be key drivers for fuel- Vehicle traffic on Ontario’s highways. switching in sectors alongside electrification. 18 PRODUCTION INPUTS PRODUCTION PROCESS OUTPUTS Electrolysis Water & Low-Carbon Electricity Hydrogen Gas Gasification & Pyrolysis Biomass Carbon Capture Use & Storage Carbon Steam Methane Intensive Reformation Hydrogen Natural Gas Gas STORAGE Natural Gas Grid Salt Cavern Depleted Reservoirs & Wells Cylinder TRANSPORTATION, TRANSMISSION & DISTRIBUTION Pipeline Truck Train Ship Fueling Station END-USES Industry Transportation Electricity Buildings & (feedstock, fuel) (fuel cell fuel) (storage, grid balancing) Communities (fuel) 19 Like RNG, low-carbon hydrogen can be blended Low-carbon hydrogen can also play a role in linking with natural gas in existing natural gas networks, the electricity grid to the natural gas distribution reducing its carbon footprint. Similar to RNG, grid, such as converting off-peak electricity from hydrogen can also be blended into natural gas- the provincial power grid into hydrogen that can be fired electricity generation facilities where feasible, blended into the natural gas distribution system. helping lower the carbon footprint of these peaking units when they are required. Low-carbon hydrogen and RNG complement each other as low-carbon fuels with locational and production diversity. Ontario’s Energy Mix In 2017, about 28 per cent of Ontario’s energy use was natural gas and 16 per cent was electricity. Hydrogen has the unique potential to help solve to major energy challenges including clean energy storage, green transportation and linking the electricity and natural gas distribution grids. Refined Petroleum Products 1,452 PJ 48 % Natural Gas 852 PJ 28 % Electricity 481 PJ 16 % Biofuels 129 PJ 4% Others 121 PJ 4% 0 300 600 900 1200 1500 Source: Canada Energy Regulator 20 ONTARIO’S COMPETITIVE AND REGIONAL ADVANTAGES Key Considerations for Hydrogen Deployment I. Open for Business transformation, gaseous fuel storage, and underground caverns for subsurface hydrogen storage; Ontario has many advantages that will help • Northern Ontario: feedstock from advance a globally competitive low-carbon sustainably managed forests; hydrogen economy for consumers in Canada and around the world. Ontario has a world-class • Greater Toronto Area: large density of end- clean electricity system, highly skilled workforce, users, such as vehicle fleets and heavy-duty trucking; global hydrogen technology manufacturers and innovative companies that are working to advance • Hamilton: major steel producers and low-carbon hydrogen technology. manufacturing hub; • Southern Ontario: heavy industry Ontario’s location within the Great Lakes region transformation; and is beneficial for trade with the United States and • Resource recovery across Ontario: overseas markets including Europe and Asia, feedstock from landfills as well as food and which could include trading low-carbon hydrogen organic waste processing facilities. and associated technologies in the future. Ontario is uniquely positioned to deliver the cutting-edge Ontario has a solid foundation for innovation low-carbon hydrogen equipment and services with a world-class education system and research needed to meet the demand of the global market. ecosystem. Ontario’s universities and colleges are recognized globally and include several Certain regions in Ontario have opportunities to institutions that work on hydrogen and fuel cell advance low-carbon hydrogen, for example: related research. • Niagara Region: run-of-the-river hydroelectricity and electricity grid Ontario is committed to providing services and regulation services that can be used for programs to individuals and businesses that can large-scale hydrogen production; be leveraged to support a low-carbon hydrogen • Bruce-Huron Region: large-scale clean economy in the province: electricity generation and geological • Ontario launched a second round of the storage; Skills Development Fund in September • Windsor-Quebec Corridor: busiest freight 2021. The fund encourages applicants corridor in North America; to submit proposals that will address employer challenges to hiring and • Windsor and Sarnia-Lambton Region: training workers during the COVID-19 refineries and chemical production 21 pandemic, including priority sectors such as • Paralleling federal measures that allow advanced manufacturing, life sciences and businesses to accelerate write-offs of technology, which can include hydrogen investments made in most depreciable technology. assets. These measures include an • Ontario launched the 2021-22 Pre- immediate 100 per cent write-off for Apprenticeship Training Program Call for manufacturing and processing machinery Proposals in December 2021. The program and equipment, specified clean energy introduces individuals seeking a career in equipment and zero-emission vehicles; and the skilled trades to the technical training • The Regional Opportunities Investment Tax needed for apprenticeship in a specific Credit for certain capital investments in trade, including those related to hydrogen designated regions of the province. technology. The goal of the program is to increase the number of new entrants to Ontario’s industrial sectors are already exploring apprenticeship programs, while addressing measures to reduce their carbon footprint. skilled trade shortages in high-demand Adopting low-carbon hydrogen could further trades. help industry reduce its GHG emissions and aligns with programs like Ontario’s Emissions • Ontario has a number of programs and services for enterprises that can be Performance Standards (EPS). The EPS program is leveraged to support low-carbon hydrogen a key commitment of the government to reduce in Ontario. Examples include services that GHG emissions from large, industrial emitters with provide business opportunity analysis a system that is tough but fair, cost-effective and and market insights, client-centric advice flexible to the needs and circumstances of our and facilitation, site selection and export province. assistance. Some Ontario regions have taken steps to • In addition, Ontario has regional economic champion their area as potential hydrogen hubs. development funds that can support low- For instance, Sarnia-Lambton has highlighted the carbon hydrogen in Ontario. This includes region’s cluster of current and potential low- the Eastern Ontario Development Fund, the carbon hydrogen producers and users (e.g., in Southwestern Ontario Development Fund and the Northern Ontario Heritage Fund the petroleum refining and chemical sectors), Corporation’s funding programs. energy and infrastructure assets, research capabilities and skilled workforce as attributes Ontario also provides several income tax that position this region to be a key player in the incentives to encourage business investment and low-carbon hydrogen economy. Ontario’s support job creation. These incentives include: for clean steelmaking in Hamilton also provides • The Ontario Research and Development an opportunity for companies, research centres Tax Credit, Ontario Innovation Tax Credit and workers in that region to begin partnering on and the Ontario Business-Research Institute hydrogen hub opportunities. Tax Credit for qualified expenditures on scientific research and experimental Other regions have potential as low-carbon development performed in the province; hydrogen hubs and Ontario has engaged in 22 preliminary research to evaluate potential packaging and electronics. As the sector continues opportunities, along with the federal to focus on environmental sustainability, the government’s Hydrogen Strategy which is also province’s chemical manufacturers are investing in looking to identify potential hubs for Canada. technologies that contribute to waste and carbon emission reductions, as well as the evolving Ontario has many established industrial sectors circular economy. that can support growth of the province’s low-carbon hydrogen economy. This includes Sarnia-Lambton is also a major player in the businesses with experience in cleantech, steel, production of fertilizer and ammonia. Ammonia auto manufacturing and chemicals. These is comprised of three parts hydrogen and one- businesses are ready to collaborate and deliver part nitrogen. At present, ammonia production innovative solutions for the future of low-carbon is one of the largest industrial uses of hydrogen, hydrogen in Ontario. Two such sectors, chemicals though the vast majority of it is grey hydrogen. and autos, are profiled below. Low-carbon hydrogen presents an opportunity to decarbonize ammonia production. Chemical Manufacturing In addition to being used to produce fertilizer, ammonia can also be used as a chemical carrier With 40 per cent of the country’s total production, to enable the cost-effective transport of hydrogen Ontario is a chemical manufacturing powerhouse. within Canada and to export markets across The chemical sector has a longstanding presence the continent and beyond. Ammonia’s higher in Ontario and has played a vital role in the volumetric energy density compared to hydrogen province’s economy. gas, enables hydrogen to be transported and From a burgeoning sector that mass-produced stored using existing ammonia transportation synthetic rubber in Sarnia-Lambton during infrastructure, which is already highly Canada’s World War II efforts, the sector has developed including pipelines, railways, ports grown to become the largest in Canada, providing and distribution facilities across Canada, North 26,000 direct jobs to Ontarians (in 2020)5, and is America and the globe. the fourth largest exporting manufacturing sector Ammonia is also a fuel in its own right. It can be in the province. With over $16 billion in sales, used directly for power generation in ammonia- the sector’s value chain includes the production fired turbines, engines and marine vessels. As of ethanol fuel from biomass feedstock, as well well, the International Maritime Organization has as commodity chemicals, synthetic resins, a wide identified ammonia and hydrogen as key fuels for range of specialty chemicals and plastics as well as a decarbonized shipping industry. a leading producer of chewing gum. The sector’s products are direct enablers of other key sectors in the province, including automotive, aerospace, health and life sciences, food 5. https://www.investontario.ca/chemical-and-biochemical 23 Automotive Sector Ontario’s automotive sector is going through a transformation to produce green vehicles. Recent Ontario is North America’s second largest vehicle landmark investments from global automakers producer, with a sector that includes world- totaling around $4 billion firmly establish Ontario leading vehicle assemblers, parts manufacturers as a hub for EV manufacturing and Ontario and research centres. As the only subnational companies are at the forefront of developing zero- jurisdiction with five original equipment emissions technologies including fast-charging manufacturers that, despite the global pandemic batteries, connected charging infrastructure, and supply chain issues, produced nearly 1.4 battery recycling and EV powertrains. Recent, million vehicles in 2020, Ontario is well-positioned transformative investments in Ontario include: to manufacture the next generation of low-carbon vehicles, including hydrogen fuel cell vehicles. • $1.8 billion by Ford to produce electric vehicle battery packs and five new electric The Government of Ontario’s auto sector strategy, vehicle models in Oakville, including historic Driving Prosperity, aims to strengthen and build investments of $295 million each from the on leadership in automotive assembly and parts governments of Ontario and Canada production as well as technology innovation and • $1.5 billion by Stellantis to upgrade its adoption. Over the next decade, global sales of Windsor Assembly Plant and build electric electric vehicles (EVs) are forecasted to grow vehicles exponentially. Ontario’s automotive plan includes • $1 billion by GM to produce the BrightDrop maintaining and growing Ontario’s auto sector all-electric delivery van in Ingersoll, the first by building at least 400,000 electric vehicles and produced by a mainstream automaker in hybrids by 2030. Canada Hydrogen Investments Ontario is also a world leader in hydrogen technology development. The world’s first commercial hydrogen powered trains, North America’s first hydrogen-blended natural gas project in Markham and the commercialization of large-scale hydrogen production systems all rely on hydrogen technologies developed by Ontario- based companies. These early-stage investments in hydrogen technology reflect Ontario’s desirability as a Hydrogen Fuelled Truck. jurisdiction for research and development, innovation and manufacturing. 24 Cummins & Hydrogen Optimized Cummins’ Fuel Cell and Hydrogen Technologies group is based in Mississauga, Ontario following its acquisition of Hydrogenics in 2019. Since the acquisition, Cummins has dramatically scaled up its Mississauga operations more than doubling its headcount and expanding its facilities. Cummins is also the leading developer of large-scale proton exchange membrane (PEM) water electrolyzer equipment for the production of low-carbon hydrogen. Enbridge Gas and Hydrogenics built the first large scale low-carbon hydrogen facility in Markham, Ontario, which was commissioned in 2018. For over 20 years, Cummins has developed high performance fuel cell power modules for many equipment manufacturers and integrators including transit buses in China, Class 8 trucks in California and Europe, and in the world’s first fuel cell electric train, the Coradia iLint, developed by French train manufacturer Alstom. Hydrogen Optimized, located in Owen Sound, Ontario, develops and commercializes large-scale hydrogen production systems. Their RuggedCell water electrolyzer converts clean electricity into low-carbon hydrogen for industrial, chemical, utility and energy end users. The recent operation of a 50,000 ampere RuggedCell unipolar electrolyzer represents a breakthrough in large-scale hydrogen production technology and a direct pathway toward the commercialization of single electrolysis modules up to 100 megawatts (MW). These companies and other Ontario businesses are already leading the world and place Ontario at the forefront of clean energy technologies and development. 25 Ontario is undertaking several initiatives to ensure II. Clean, Reliable and that consumers in Ontario continue to have access Affordable Electricity to clean, reliable electricity, including: System • Asking the Independent Electricity System Operator (IESO) to evaluate a moratorium Ontario is well positioned to be a significant on the procurement of new natural contributor in low-carbon hydrogen production gas generation in Ontario and develop using its abundance of clean electricity. The an achievable pathway to phase out province’s clean electricity grid is powered primarily contracted natural gas generation and by a combination of nuclear, hydroelectric, other move to zero emissions in the electricity renewable electricity sources and natural gas. system, while maintaining reliability and affordability. As part of this work, the IESO Today, Ontario’s electricity system is among the is giving consideration to the possibility of cleanest in the world with the majority of electricity maintaining natural gas generating facilities generation coming from non-emitting sources. but replacing natural gas with clean fuels Due to the nature of the electricity system, surplus such as hydrogen and renewable natural generation occurs when electricity production from gas or the development of utility-scale baseload facilities exceeds demand. This typically carbon capture and storage; occurs overnight when demand for electricity is • The development of a clean energy credit at its lowest and generation is the cleanest. The (CEC) registry and trading system that province can maximize this surplus electricity, would allow consumers to ensure that including from nuclear, hydroelectric and wind their electricity consumption comes generation, by utilizing it to produce hydrogen and from 100 per cent emission free energy potentially storing it to generate electricity during resources to fulfil their corporate, times of system need. environmental and sustainability goals and promote the development of clean energy supply in Ontario; • Completed the demolition of the last coal- fired generating station in Ontario, Lambton Generating Station, in February 2022; and, • Re-contracting Ontario’s biomass generation facilities and enabling storage and distributed energy resources in the province, while investigating opportunities for future hydroelectric power generation in Northern Ontario. The Ontario landscape has changed in the past few years. In addition to its clean energy advantage, Minister of Energy Todd Smith tours the Smoky Falls Generating Station located on the Mattagami River near Kapuskasing. Smoky Falls Generating Ontario now has competitive electricity rates for Station is operated by OPG in partnership with Moose Cree First Nation and has been in service since 1931 with a capacity of 267 MW. large electricity consumers through programs 26 like the Industrial Conservation Initiative (ICI) peak system need, which helps avoid the need to and the Northern Industrial Electricity Rate build energy generation infrastructure only to meet Program (NIERP). In 2021, Ontario introduced short periods of peak demand. The ICI program is the Comprehensive Electricity Plan (CEP), which especially well-suited to hydrogen production, as included shifting funding from the electricity consumers with flexible consumption profiles can rate-base to the province for a portion of non- achieve electricity rates among the lowest in North hydro renewable energy contract costs, which America. are above market and not competitive. The CEP is forecasted to reduce rates for industrial consumers For example, under current system conditions, by about 15 per cent and for mid-sized commercial an ICI participant that is directly connected to consumers by about 17 per cent in 2022 by the high-voltage transmission grid and that does removing the above-market costs of electricity not consume electricity during peak hours could generating contracts for wind, solar and biomass achieve all-in electricity costs of about $35 per from electricity bills. megawatt-hour or lower (based on 2021 rates), which is well below rates in competing jurisdictions. Most large Ontario electricity consumers participate in the ICI and can reduce their electricity costs by avoiding consumption during periods of Ontario’s Clean Electricity Generation In 2020, about 94 per cent of Ontario’s electricity came from non-emitting sources, including nuclear, hydroelectric, biomass, wind and solar. Natural gas generation is required to help meet temporary supply gaps due to the refurbishment of Ontario’s nuclear fleet and provide back-up generation when the sun is not shining and the wind is not blowing. Nuclear 57% Hydroelectric 24 % Wind 9% Natural Gas 6% Solar 2% Bioenergy 1% Other 1% 27 Ontario’s Nuclear Advantage Ontario is a leader in nuclear energy. About 95 per cent of Canada’s nuclear generation occurs in Ontario. In 2020, nuclear electricity generation accounted for about 60 per cent of Ontario’s electricity mix. Only five countries have a higher share of annual electricity generation from nuclear power than Ontario. The refurbishments of the Bruce and Darlington nuclear generating stations will secure a long-term supply of reliable and emission-free energy for decades to come. Ontario is also leading the way in nuclear innovations such as Small Modular Reactors (SMRs) which could provide scalable clean energy across Canada and around the world. Ontario has been collaborating on SMR development with Saskatchewan, New Brunswick and Alberta through a Memorandum of Understanding (MOU). Under the MOU, the provinces were tasked with developing a Strategic Plan with a path forward for the advancement of SMRs across Canada. Some designs for SMRs that may be considered are well-suited for producing high-temperature steam for hydrogen production. In addition, the Province supports Ontario Power Generation’s plan to build a grid-scale SMR at the Darlington nuclear site – which would be its first new reactor since 1993 and is planning for it to be operational as early as 2028. The Darlington SMR would help meet Ontario’s growing demand for clean electricity that can be leveraged for the production of clean hydrogen. Ontario Power Generation’s Darlington Nuclear Generating Station. 28 • Underground Natural Gas Storage: Ontario III. Existing Storage and has the second largest underground Pipeline Infrastructure natural gas storage capacity in Canada at about eight billion cubic metres.7 This Ontario has existing and planned pipeline and underground storage uses depleted oil and storage infrastructure that can be used to store gas reservoirs. hydrogen and deliver it to homes and businesses, In the future, as low-carbon hydrogen as it is currently being used to transport and store production and use increases in the province, natural gas and RNG. Leveraging existing assets existing underground hydrocarbon and liquified to the extent possible will help offset the need to petrochemical storage facilities could be explored build new storage and distribution facilities. Existing for potential use to store blended natural gas and natural gas assets include: hydrogen where feasible. Additional research will • Natural Gas Distribution Network: be required to confirm the suitability of Ontario’s Ontario’s natural gas pipeline network existing underground storage assets to new currently supplies about 3.5 million homes applications. and 340,000 businesses in the province. Ontario is also working to expand natural Home heating is one of the largest contributors gas access to thousands of households to a household’s GHG emissions. By blending and businesses across northern, rural and low-carbon hydrogen into the natural gas system, Indigenous communities. residential customers can reduce their carbon • Salt Layers: Southwestern Ontario has footprint while keeping their existing furnaces, geologic salt layers potentially suitable water heaters and other gas appliances. Blending for creating large salt caverns deep projects are happening around the globe and underground that are currently a typical are safe, effective ways of leveraging low-carbon storage method for liquid hydrocarbons and hydrogen. Ontario is already home to an exciting hydrogen. Ontario currently has 73 active pilot project that is blending hydrogen into storage caverns in the Windsor and Sarnia the natural gas distribution system – the Low- area serving the petrochemical industry, Carbon Energy Project in Markham. The federal which could be evaluated for conversion to government, natural gas pipeline companies and hydrogen storage.6 Within North America, natural gas distributors are reviewing codes and there are three hydrogen salt storage standards to assess hydrogen blending limits in caverns that have been in operation since natural gas pipelines. 1983.

6. Ontario Petroleum Institute.

7. Canada Energy Regulator. 29 North America’s First Utility-Scale Power-to-Gas Facility In 2018, Enbridge Gas and Hydrogenics (subsequently purchased by Cummins Inc.) developed and built the Markham Energy Storage Facility, which converts Ontario’s clean electricity from the provincial power grid into low-carbon hydrogen. From 2018 to 2021, Ontario’s IESO contracted with the facility to help maintain electricity grid reliability by providing regulation services to help balance electricity supply and demand. Enbridge Gas recently put into service the Low-Carbon Energy Project which is blending hydrogen into the natural gas system on a pilot basis, offsetting a portion of fossil natural gas with hydrogen. This utility-scale facility, commissioned on October 1, 2021, is the first of its kind in North America and will: • Replace up to two per cent by volume of natural gas for 3,600 homes and businesses; and • Reduce GHG emissions by up to 120 tonnes a year. According to Natural Resources Canada, natural gas blend ratios of up to 20 per cent hydrogen are being trialled around the world, with limited impact on infrastructure and end-use appliances.8 In Europe, hydrogen blending has been started in Germany, France and the United Kingdom, with a demonstration project in Scotland set to deliver up to 100 per cent hydrogen for a small number of homes.9 Enbridge and Hydrogenics Blending Site in Markham.

8. Hydrogen Strategy for Canada, p. 41. 9. https://h100fife.co.uk/. 30 • Ontario in collaboration with the TSSA IV. An Enabling Regulatory adopted the Canadian Hydrogen Installation Environment Code in 2007. Ontario’s Fuel Industry Certificates includes a hydrogen certificate Ontario is prioritizing red tape and burden to support fuels safety in Ontario, which is reduction to create an open for business climate the first of its kind in Canada. that attracts investment and creates jobs. The Ontario has worked with industry and government’s goal is to make life better for people environmental groups to update “Guideline and remove regulatory roadblocks for businesses A-5: Atmospheric Emissions from Stationary and reduce their costs by $400 million. Combustion Turbines” to include provisions for To date, Ontario has taken actions to modernize, the use of hydrogen in stationary combustion streamline and remove out-dated or duplicative turbines. This update aligns with federal guidelines, processes and regulations to the tune of a incorporates industry best practices, and reduces reduction of 2 per cent per year. overall air emissions that contribute to air pollution, such as nitrogen oxides, from individual combustion This work has already been successful in the turbine systems. clean fuels sector by unlocking the value of RNG resources, particularly by streamlining approvals for on-farm biogas anerobic digestors in 2020 to increase RNG production in Ontario. Ontario and the Technical Standards and Safety Authority (TSSA) have also been proactive in developing regulations and codes to support the safe adoption and use of hydrogen; • Ontario worked with the TSSA to modernize operational compliance obligations for hydrogen refueling stations by updating the Operating Engineers regulation (O. Reg. 219/01) that adopts a risk-informed framework to enable the use of modern technology and updates operating engineer certification and requirements without compromising public safety. This change was introduced as part of a package of measures announced alongside the Better for People, Smarter for Business Act in 2020. 31 Currently, about 3.5 million tonnes of food and V. Clean Biofuel Resources organic waste is generated in the province every year, some of which is captured and cleaned to Ontario’s rich forest, agricultural and municipal produce RNG for injection into the natural gas grid. biomass resources could be used to create low- carbon hydrogen or other renewable fuels. This RNG from food and other organic waste could includes using diverted waste streams from these then be used to produce low-carbon hydrogen. sectors, as well as material from sustainably Alternatively, dry organic waste could be used to managed forests and purpose-grown crops. produce low-carbon hydrogen directly. Ontario’s sustainably managed Crown forests can supply approximately 30 million cubic metres of wood annually. As outlined in Ontario’s Draft Biomass Action Plan, Ontario’s forest sector is CHAR Technologies highly integrated. For example, mill by-products In October 2021, CHAR Technologies Ltd. from one facility are the feedstock to produce started surveying and testing at the proposed energy for another and fuel Ontario’s northern site of its woody biomass-to-RNG High fleet of biomass electricity generators, which helps Temperature Pyrolysis (HTP) project near reduce waste and promotes a circular economy. Kirkland Lake, Ontario. This project may The existing forest products manufacturing potentially produce 500,000 gigajoules per infrastructure provides for a solid foundation to year of RNG and 10,000 tonnes per year of leverage future investments for the development CHAR’s proprietary CleanFyre bio-coal. The of new bioproduct and revenue streams while company has a letter of interest signed in July avoiding added pressure on landfills. 2021 for biomass supply to the project, and an Bioenergy production from low-grade forest exclusive letter of interest signed in September biomass can support existing and new uses of 2021 with a Canadian gas utility for long term wood waste, including emerging uses such as RNG offtake. CleanFyre from the proposed production of RNG from the methane captured as Kirkland Lake facility will be earmarked for organic material decomposes, and producing low- future sale to the steelmaking and metal carbon hydrogen. smelting industries. As other sectors of the economy move to transition CHAR is expanding its activities in the United away from fossil fuels and toward more circular States as well. The company has a definitive and sustainable alternatives, the forest sector agreement for a project with Hitachi Zosen can provide valuable supply chain benefits to Inova to develop an HTP to hydrogen system participants in the emerging green economy. This at their existing San Luis Obispo anaerobic has the potential to contribute to the Northern digestion facility in California. The HTP system Ontario economy and support forestry sector jobs. is being developed to produce up to 1 million kilograms of green hydrogen per year. 32 Biogas Digesters at StormFisher’s London Biogas Facility. StormFisher and ZooShare Biogas The StormFisher London Biogas Facility and the The ZooShare Biogas Plant, Canada’s first biogas Toronto-based ZooShare Biogas Plant are both plant to use zoo animal waste as the primary converting thousands of tonnes of organic waste biogas feedstock, turns food waste and Toronto into biogas for electricity and to upgrade biogas to Zoo animal waste into renewable power for the RNG for heating and fuel transportation. Ontario grid. ZooShare converts 2,000 tonnes of zoo animal waste and 15,000 tonnes of food waste StormFisher partnered with Enbridge Gas to into renewable power for about 250 homes. This upgrade the biogas produced in their facility to reduces GHG emissions by up to 20,000 tonnes per RNG to inject in the Ontario natural gas system. year. At the end of the biogas production process, Over 70,000 tonnes of organic waste from the remaining solid waste is used as a nutrient-rich restaurants, grocery stores, municipalities and other fertilizer to grow food. ZooShare began to generate organizations are converted to about 3 million power to the grid on April 1, 2021. cubic metres of RNG annually using an anaerobic digestion process. The RNG diverts waste from In regard to hydrogen opportunities, biogas can landfills and eliminates over 8,000 tonnes of GHG be used as a low-carbon feedstock for hydrogen emissions. The digested organics are then used to production or to generate clean electricity which produce fertilizer. The StormFisher London Biogas can produce hydrogen using electrolysis technology. Facility received the 2021 Project of the Year award from the Canadian Biogas Association for its RNG production system accomplishments. 33 Working Cooperatively with the Federal Government Ontario will continue to work with the federal is already participating on intergovernmental government as well as with other provinces and hydrogen working groups established by the territories to collectively advance the hydrogen federal government. There is work underway to economy across Canada. create about 16 intergovernmental working groups to collaborate on different aspects of hydrogen The Hydrogen Strategy for Canada, launched development, including natural gas, nuclear energy, in December 2020, aims to make hydrogen a hydrogen hubs, codes and standards, mining and central part of Canada’s goal of achieving net-zero transportation. emissions by 2050, while building up Canada as a global leader in clean renewable fuels. The federal The federal government is also undertaking further hydrogen strategy includes an ambitious near-to studies to advance its own hydrogen strategy (e.g., long-term framework for actions. identifying export markets, off-grid opportunities, harmonizing codes, standards and modelling, The proposed Roadmap to 2050 in the federal co-location of hydrogen and nuclear assets) that hydrogen strategy covers a wide range of policies will help to inform the FPT work that is already and activities, such as: unfolding. • Using the proposed Clean Fuel Standard to drive near-term investment in the sector; Participation in these working groups allows Ontario to reflect the province’s interests, for • Incentivizing regional hydrogen hubs; example by seeking its fair share of federal funding • Enabling larger scale hydrogen production and aligning approaches to low-carbon hydrogen for relevant industrial applications; and development where appropriate. Ontario is also • Deploying large-scale hydrogen promoting its existing low-carbon hydrogen technologies.10 strengths, needs and opportunities to the federal government to leverage potential resources. In addition, the federal hydrogen strategy emphasizes the importance of developing strategic partnerships and of collaborating across multiple levels of government in order to align programs and policies and to identify areas for federal/ provincial/territorial (FPT) collaboration. Ontario

10. Hydrogen Strategy for Canada. 34 Steel manufacturing, Brantford. Ontarians have done their part in our electricity We also call on the federal government to system by paying for the phase-out of coal. To ensure that ample funding is available for meet our climate change goals, we need the federal Ontario companies to engage in research and government to play a role in Ontario’s low-carbon demonstration projects for the production, storage, economy, including the commercial development of distribution and end-use of hydrogen as well as hydrogen. exporting hydrogen to global markets. To make hydrogen a success in Ontario will require the federal government to offer a full suite of tangible supports and partnerships, including: • Funding and risk-sharing opportunities; • Clear and efficient regulations that are harmonized across leading jurisdictions; and • Support for innovation. 35 Ontario’s Low-Carbon Hydrogen Future • Strengthen Collaboration: Work with the I. Core Objectives private sector, the federal government, municipalities, Indigenous communities, Ontario’s vision for the low-carbon hydrogen academic institutions and other strategy is to develop a self-sustaining low-carbon stakeholders to grow and sustain a low- hydrogen economy in Ontario that would create carbon hydrogen economy in Ontario. local jobs, attract investment and reduce GHG emissions. Through this strategy, the province will showcase additional areas of work across government and Ontario’s strategy lays out a framework that builds outside of it that are helping to build momentum on our existing strengths and our government’s and support for Ontario’s low-carbon hydrogen broader commitment to reducing barriers, economy in the near term and into the future. driving innovation and encouraging collaborative partnerships. The core objectives of Ontario’s strategy are to: • Generate Economic Development and Jobs: Capitalize on Ontario’s competitive and regional advantages, including our talent, infrastructure and resources, to accelerate growth in Ontario’s low-carbon hydrogen economy. • Reduce Greenhouse Gas Emissions: Support our Made-in-Ontario Environment Plan targets to reduce GHG emissions by encouraging the use of low-carbon hydrogen. • Promote Energy Diversity: Consider how low-carbon hydrogen can cost-effectively support Ontario’s evolving energy system and strengthen reliability through electricity storage and clean fuel supply. • Promote Innovation and Investment: Enable opportunities for low-carbon hydrogen use and position Ontario as a leading destination for investment. 36 Sir Adam Beck Hydroelectric Generating Station. this facility in Niagara Falls, Ontario, which would II. Immediate Actions be a catalyst for the low-carbon hydrogen economy in Ontario. Atura Power has completed a feasibility Ontario is taking immediate and meaningful steps study and preliminary design for the Niagara through eight specific actions to enable production Hydrogen Centre. The facility plans to include a and expand the low-carbon hydrogen economy. 20 MW electrolyzer that is capable of providing Through these actions, Ontario’s hydrogen strategy grid balancing services and use low-cost off-peak is expected to increase the amount of annual electricity to produce low-carbon hydrogen. With production capacity of low-carbon hydrogen this local hydrogen supply, it is anticipated that the eight-fold in the province and support the nascent Niagara facility can be a prominent low-carbon market to meet its potential. hydrogen hub for heavy-duty trucking, municipal mobility and heavy industrial consumers in Ontario. Action 1: Launching the Niagara Falls The proposed facility would be a source of low- Hydrogen Production Pilot carbon hydrogen that can be used in the merchant market for hydrogen as well as blending with The Ontario Government is supporting Atura natural gas in natural gas combustion turbines (to Power’s proposal for the province’s largest low- be performed in the near term at Atura Power’s carbon hydrogen production facility. Atura Power facilities). The low-carbon hydrogen produced is a wholly owned subsidiary of Ontario Power at the Niagara facility would support emission Generation (OPG). reductions equivalent to taking more than 4,000 cars off the road. Atura Power proposes to build, own and operate 37 The main source of electricity for the electrolyzer to produce low-cost, low-carbon hydrogen. The would be the nearby Sir Adam Beck Hydroelectric Province is supportive of innovative solutions Generating Station on the Niagara River. Hydrogen like the Niagara Hydrogen Centre that maximize produced via electrolysis at this location has an Ontario’s low-carbon electricity resource utilization exceptionally low life-cycle carbon intensity. The and kick-start the low-carbon hydrogen economy. Niagara facility location allows direct access to Highway 405, which connects the northern portion With the addition of the 20 MW electrolyzer, of the I-90 in New York with the Queen Elizabeth Ontario’s potential for low-carbon hydrogen Way (QEW) and the Greater Toronto Area (GTA). production capacity would expand eight-fold. This area has a strong industrial base, and the Currently, the Markham Power-to-Gas facility has a location enables efficient access to the 400 series capacity of 2.5 MW for hydrogen production. The highway network and end-users in the GTA and addition of this new facility will increase Ontario’s upstate New York. installed electrolyzer capacity to 22.5 MW. The benefits of near-term low-carbon hydrogen production at the proposed Niagara facility include local and provincial economic development through investment, jobs and developing the first large-scale low-carbon hydrogen hub in Ontario. Atura Power is advancing the detailed design and conducting long-lead procurement for the electrolyzer that will support a final investment decision for the facility in summer 2022. The final investment decision will depend on the outcome of federal funding submissions made to the Natural Resources Canada Clean Fuels Fund. If successful, the facility is expected to achieve commercial operations by the end of 2023. Ontario is supporting the proposed hydrogen production facility in Niagara through a regulatory exemption to the Gross Revenue Charge (GRC). The regulation, filed in January 2022, provides GRC property tax and waterpower rental charge savings from 2024-33 for electricity generated at the Sir Adam Beck station used specifically for hydrogen production while providing electricity grid regulation under prescribed conditions. The proposed Atura Power project and the Province’s actions will enable better utilization of the Niagara Falls hydroelectricity resource, while being capable of providing electricity grid frequency regulation 38 POTENTIAL ATURA POWER REGIONAL HYDROGEN PRODUCTION POTENTIAL ATURA SITES POWER AND USES REGIONAL HYDROGEN PRODUCTION SITES AND USES Halton Hills Energy Centre 2 Toronto Halton Hills Energy Centre 2 Toronto Niagara Hydrogen Centre Niagara Hydrogen Centre Hamilton 1 Hamilton 1 Lambton Hydrogen Centre London Lambton Hydrogen Centre London 5 5 33 Nanticoke Hydrogen Centre Nanticoke Hydrogen Centre Brighton Beach Brighton Energy Beach Centre Energy Centre 4 4 1 1NIAGARA NIAGARA HYDROGEN HYDROGEN CENTRE CENTRE 33 NANTICOKE NANTICOKE HYDROGEN HYDROGEN CENTRE CENTRE Grid balancing, power Industry (feedstock, fuel) Gridgeneration balancing, power Industry (feedstock, fuel) generation 44 BRIGHTON Industry (feedstock, fuel) Industry (feedstock, fuel) BRIGHTON BEACH ENERGY CENTRE BEACH ENERGY CENTRE Heavy-duty trucking Heavy-duty trucking Storage: Salt Cavern Storage: Salt Cavern 2 HALTON HILLS ENERGY CENTRE Power generation 2 HALTON HILLS ENERGY CENTRE Power generation Power generation 5 LAMBTON HYDROGEN CENTRE Power generation 5 LAMBTON HYDROGEN CENTRE Heavy-duty trucking Industry (feedstock, fuel) Heavy-duty trucking Industry (feedstock, fuel) 39 Action 2: Identifying Ontario’s Hydrogen Hub • Nanticoke Hydrogen Centre: Nanticoke, Communities located on Lake Erie near heavy industrial consumers of hydrogen, is an ideal location Further to the Niagara Hydrogen Centre, to leverage existing electricity infrastructure Atura Power has established partnerships with to meet heavy emitting industries’ growing Ontario-based steel, oil and gas, ammonia, auto- demand for hydrogen. The Nanticoke site manufacturing, academic and transit organizations was previously used by OPG as a coal-fired to assess the feasibility of meeting distributed electricity generation site. The shutdown low-carbon hydrogen demand with hydrogen made of this facility was a part of the world’s from low-carbon Ontario electricity. single largest climate change action taken to date – eliminating coal generation from In addition to Niagara region, Atura has identified the province of Ontario. OPG has begun four strategic locations across the province where transforming the site into a clean energy low-carbon hydrogen demand can be matched centre, starting with 44 MW of solar by electrolysis produced hydrogen that leverages generation in partnership with Indigenous existing electricity infrastructure and Ontario’s communities. Atura Power is assessing clean electricity grid. The following locations opportunities to further develop this energy have been identified as potential hydrogen hubs park with the addition of low-carbon and have funding applications with the federal hydrogen to support the decarbonization government to increase Ontario’s hydrogen efforts of local industry. Execution of the production or assess future feasibility: feasibility study with partners will commence in summer 2022 subject to successful • Halton Hills Energy Centre: Low-carbon funding award decisions from the federal hydrogen production in the GTA can meet government. the need for future mobility demand, particularly for heavy duty trucking. The • Brighton Beach Energy Centre and Halton Hills Energy Centre is at the cross Hydrogen Salt Cavern Storage: Brighton section of highways 401 and 407 and is Beach, located in Windsor, is one of the well-positioned to provide hydrogen to a few locations in Ontario with suitable significant number of trucking and logistics geology for underground salt cavern companies in the area. As the demand for storage of hydrogen. Atura Power, in hydrogen for mobility applications grows, conjunction with a local industry partner, Atura Power’s Halton Hills combined cycle is proposing a feasibility study to assess gas turbine can be an anchor consumer of hydrogen production and large-scale sub low-carbon hydrogen by blending hydrogen surface storage of hydrogen in salt caverns. with natural gas during periods of peak Understanding the potential to expand or electricity demand, thereby reducing convert existing salt caverns, or develop emissions. Halton Hills is being assessed as new salt caverns for hydrogen storage, is a potential production site and home for a an important component in hydrogen’s 20 MW electrolyzer and is pending federal decarbonization potential. As the hydrogen funding decisions expected in Spring 2022. demand is established in the region, Atura Power’s Brighton Beach combined cycle 40 gas turbine can consume the hydrogen, Action 3: Assessing the Feasibility of Hydrogen reducing emissions during peak generation Opportunities at Bruce Power periods. The feasibility study is subject to funding award decisions from the federal The Bruce Nuclear Generating Station is Ontario’s government, and if successful, the project largest nuclear facility and the largest operating will commence as early as summer 2022. nuclear plant in the world. Bruce Power will explore opportunities to leverage excess energy from the Bruce station (i.e., energy that is not currently • Lambton Hydrogen Centre: The project being transmitted to the electricity system) for proposed in the Lambton-Sarnia region hydrogen production. This includes excess steam, is located at a former OPG coal-fired diverted steam to address system manoeuvres, generation site. In February 2022, the or incremental output as part of Bruce Power’s smokestacks and powerhouse of the Project 2030 to achieve 7,000 MW peak electricity decommissioned Lambton Generating generation at the site. Station were safely imploded by OPG. The safe decommissioning and demolition As a first step, Bruce will launch a Hydrogen of this facility represents an opportunity Opportunities Study in 2022. The study will be led for new beginnings for this site as a clean by Bruce Power in collaboration with Greenfield energy centre. Atura Power is investigating Global, Hydrogen Optimized and Ontario’s Ministry the opportunity to produce large-scale of Energy to determine opportunities for hydrogen low-carbon hydrogen at this site and serve production using this excess energy and to heavy industry in the Sarnia-Lambton area in recommend how this unique asset could become a support of a local hydrogen hub. A feasibility centre of excellence for hydrogen production and study application for this site has been a key hydrogen hub for the province. The project submitted to the federal government for will be conducted in partnership with the Hydrogen funding and, pending award, will commence Business Council and is expected to be completed in summer 2022. in early 2023. The Ministry of Energy will also undertake its In addition, the Bruce Power Centre for Next own third-party led feasibility study to explore Generation Nuclear at the Nuclear Innovation opportunities to establish new low-carbon Institute is also exploring opportunities for Bruce hydrogen or clean fuel hubs in Ontario to give Power’s assets to maximize the impact they’ll have Ontario business a competitive edge by enhancing on Canada’s clean energy future. This includes their abilities to develop and adopt low-carbon three main activities: technologies. • Leveraging investments being made in CANDU nuclear reactor technology through Ontario’s refurbishment program to further clean innovation in other sectors of the economy; 41 • The Breakthrough Energy Program In addition, the Ministry of Energy is undertaking conducts research and policy work into consultations on other electricity rates that could small modular reactor technology as well as help to further grow Ontario’s low-carbon hydrogen evaluates the long-term opportunities for economy. fusion energy generation; and Ontario is also exploring potential Gross Revenue • Bruce Power is exploring opportunities Charge exemptions for other hydroelectric into the next 50 years for its assets to facilities, specific to the use of surplus hydroelectric be optimized, enhanced, leveraged and generation for hydrogen production. extended. Action 4: Developing an Interruptible Action 5: Supporting Hydrogen Storage and Electricity Rate Grid Integration Pilot Projects Ontario is committed to exploring the use of surplus Hydrogen producers are very well suited to provide electricity, such as spilled hydropower or curtailed electricity system benefits and have previously wind power, by hydrogen producers that are able to worked with the IESO to provide ancillary services operate with flexibility. Providing reduced rates for such as grid frequency regulation. this intermittent surplus electricity could provide an economic benefit to hydrogen producers with no The Ministry of Energy will ask the IESO to report negative impact for existing ratepayers. Although back on potential program options to support electricity rates in our province are competitive hydrogen electricity storage and grid integration and continue to attract investment, some eligibility pilot projects as Ontario’s electricity system requirements to the ICI program create barriers for continues to evolve. These projects will help to hydrogen producers. We are exploring potential improve our experience and understanding of the changes while avoiding any negative impact to potential benefits and limitations of hydrogen in other ratepayers. supporting Ontario’s provincial electricity grid. Ontario is working towards the launch of an Interruptible Rate pilot that would offer large electricity consumers reduced electricity rates in exchange for agreeing to reduce consumption during system or local reliability events, as identified by the Independent Electricity System Operator (IESO). Ontario is consulting with stakeholders on this proposal through a posting on the Regulatory Registry. Agreements like these could reduce the costs required to build new energy generation infrastructure by using existing production more efficiently. 42 Action 6: Transitioning Industry Through the storage of hydrocarbons and some compressed air Use of Low-Carbon Hydrogen energy storage projects under the Oil, Gas and Salt Resources Act and the Mining Act. We are taking immediate steps to support the efforts of industry to phase out their use of coal Recently, Ontario businesses have been interested by transitioning to low-carbon processes and in pursuing new underground geologic storage hydrogen-ready equipment. projects, such as the storage of carbon dioxide, which were not contemplated when these In February 2022, Ontario announced an regulatory frameworks were developed. The result investment in ArcelorMittal Dofasco (AMD), has been an unregulated business environment Canada’s largest producer of flat-rolled steel. This that is a barrier to advancing new technologies and investment will support a $1.765 billion project business opportunities in our province. with hydrogen-ready equipment to convert the steel production process and phase out coal-fired In that context, NDMNRF is proposing that changes steelmaking at its facilities in Hamilton, Ontario. be made to the Oil, Gas and Salt Resources Act and the Mining Act frameworks that would clarify Together, with the government’s significant the regulatory framework under which carbon investment in AMD in Hamilton and in Algoma Steel storage is permitted and allow the ministry to in 2021 to shift away from industrial coal to clean grant authorizations to use Crown land for carbon Ontario electricity, these projects alone will reduce storage activities. It would also add the ability for the province’s greenhouse gas emissions by up to NDMNRF to enter into agreements with companies 6 million tonnes – a significant step closing over 30 that want to use wells to explore, test, pilot or per cent of the remaining gap between now and demonstrate new technologies, such as carbon the Made-in-Ontario Environment Plan emission storage. reduction target for 2030. The government is committed to ensuring that These projects are equivalent to taking almost 2 potential projects like carbon storage can continue million passenger vehicles off the road. to progress, while recognizing that flexibility is currently needed to develop and test these technologies that are new to Ontario. These measures would ensure businesses have a path to Action 7: Consulting on an Ontario Carbon enable their pilot or demonstration projects with Sequestration and Storage Regulatory the appropriate oversight and accountability, and Framework would foster flexible, adaptable approaches, while protecting public and environmental safety. Carbon sequestration offers the opportunity to produce low-carbon hydrogen using natural gas. The Ministry of Northern Development, Mines, Natural Resources and Forestry (NDMNRF) regulates the drilling and operation of wells used for activities such as the exploration and production of oil and natural gas, the underground 43 Action 8: Supporting On-going Hydrogen Research Ontario is supporting two independent hydrogen research projects in partnership with Natural Resources Canada to advance hydrogen development in the province: • H2GO Canada is undertaking a comprehensive, technoeconomic evaluation of the province’s low-carbon hydrogen supply opportunities and the principal end-use applications, around which sustainable markets can be developed. This study will lay the foundations for priority project developments by identifying highest value- creation potentials among numerous clusters and hubs of prospective hydrogen activity. • Closely associated and integrated with the hydrogen value chain study described above, the related opportunities of seasonal storage of hydrogen and permanent sequestration of CO2 within Ontario’s geological prospects will be evaluated and mapped by H2GO Canada from a commercial utility perspective. Another independent project led by H2GO Canada is Hydrogen Village, which is a resource centre providing information, education and assistance to individuals and organizations seeking to develop hydrogen projects, or to adopt and use hydrogen technologies in their lives, businesses and communities. Hydrogen Village launches in Spring 2022 with three inaugural program streams to engage audiences in the Greater Toronto and Hamilton Area, including workshops for fleet managers on the use of hydrogen as a vehicle fuel, promotional ride-and-drives in a fuel cell electric vehicle and an online course for self-directed learners on the basics of hydrogen systems. 44 Path Forward and Future Areas of Work Ontario’s low-carbon hydrogen strategy showcases • Other considerations to increase the use of actions that are helping to build momentum and low-carbon hydrogen when and where it to support sustained growth in Ontario’s hydrogen makes sense in an Ontario context. economy in the near term and into the future. Evaluating new pilot and demonstration projects The strategy will build on the ongoing dialogue with will also allow Ontario to calibrate its strategy and stakeholders to better identify barriers to growing enable future government direction. For example, the low-carbon hydrogen economy in the province we can further explore options to use hydrogen to and to better support Ontario businesses. support IESO initiatives to improve electricity grid stability and support additional clean generation Ontario, in collaboration with the private and advance work on establishing hydrogen hubs in sector, the federal government, municipalities, Ontario. Indigenous communities, academic institutions and other stakeholders will continue to support This future work will provide Ontario with insights the development of Ontario’s hydrogen economy. that will help chart a course to the future for These future areas of work include: Ontario’s low-carbon hydrogen economy and • Additional actions to support Ontario’s low- will focus on economic and environmental carbon hydrogen supply chain, including opportunities that will have the most impact for potential business supports, infrastructure Ontarians. This is a future where the sector is cost- and enabling more end-use applications; effective, economically competitive and driving clean economic growth. • Identifying and addressing regulatory barriers and gaps for hydrogen production, Developing low-carbon hydrogen will be a key part storage, distribution and integration of Ontario’s efforts to electrify and decarbonize into Ontario’s electricity and natural gas its economy over the near-term while charting a systems; path ahead for decades to come. As low-carbon • Assessing production pathways and hydrogen and other clean fuels become a more adoption scenarios to accelerate low- prominent part of Ontario’s energy system, the carbon hydrogen technology scale-up, Province will consider how the electricity grid and commercialization and deployment; clean fuels can work together to contribute to • Raising public and industry awareness the energy transition. This will also help inform of the benefits of low-carbon hydrogen, Ontario’s development of its process for long-term promoting Ontario’s leadership in the energy planning. hydrogen sector to the global market and building strategic partnerships across Canada and internationally; and 45 Conclusion Ontario’s low-carbon hydrogen strategy is all people can be proud that they are contributing to a about clearing the path and laying the groundwork more sustainable and prosperous province. to support the private sector to take the lead in growing the low-carbon hydrogen economy. Working together with Ontario businesses and workers, the federal government, municipalities, This work is crucial to supporting Ontario’s Indigenous communities, academic institutions, transition to a low-carbon economy, continuing and other key stakeholders, we are going to the rebuild of the province’s manufacturing and connect Ontario with global markets to develop industrial base, and supporting good-paying jobs of an economically sustainable low-carbon hydrogen the future. sector. By supporting private sector innovation in this By leveraging our talent, infrastructure and clean technology now we will ensure that our resources, we will seize this opportunity and energy system, environment and our economy can unleash our fullest potential by becoming a world- continue to thrive for generations to come. class hub for low-carbon hydrogen innovation. Ontario is ready to do our part so we can attract more well-paying jobs in science, technology, engineering and the skilled trades; jobs where 46 APPENDIX Future Actions

1. Generate Economic Development and Jobs Capitalize on Ontario’s competitive and regional advantages, including our talent, infrastructure and resources, to accelerate growth in Ontario’s low-carbon hydrogen economy. Future Actions Review Regulatory Barriers and Gaps While Explore Options for Hydrogen Equipment Ensuring Public Safety Ontario will work with the natural gas Ontario will identify and assess regulatory sector and industry associations to explore barriers and gaps related to environmental the current status and next steps for approvals for low-carbon hydrogen projects manufacturing higher hydrogen mix-ready including approvals for generating hydrogen heating equipment and identify hydrogen from waste. retrofitting options for existing natural gas- only equipment. Ontario will ensure that its codes and standards for hydrogen storage, handling and transportation continue to support public safety as the adoption of low-carbon hydrogen increases across the province. Enable Hydrogen Adoption Through a Streamlined, Client-Focused Approach to Investment Attraction Ontario will provide a “one-stop” approach to low-carbon hydrogen companies and adopters to help them find services and programs that are most relevant to their needs. This will ensure Ontario continues to be a top-tier destination for investment and business growth. 47

2. Reduce Greenhouse Gas Emissions Support our Made-in-Ontario Environment Plan targets to reduce greenhouse gas emissions by encouraging the use of low-carbon hydrogen. Future Actions Harmonize Hydrogen Carbon-Intensity Build Industry Understanding of Low-Carbon Performance with Other Jurisdictions Hydrogen Ontario will continue to use the modelling Ontario will share technical information, tool currently used by the federal government including from research studies, with to assess the GHG emissions of hydrogen industry to support the production and use production pathways throughout their of low-carbon hydrogen in industrial sectors lifecycle, known as GHGenius. when and where it makes sense as the best pathway to meeting their decarbonization In the longer term, Ontario will work with goals. federal and other provincial governments on a standardized approach to assessing lifecycle GHG emissions for hydrogen, with a focus on approaches that align with target export markets. Raise Public Awareness of the Environmental Benefits of Low-Carbon Hydrogen Ontario will share educational information with the public, including Indigenous communities, to increase knowledge of low- carbon hydrogen’s environmental benefits and how its use can reduce emissions while growing the economy. 48

3. Promote Energy Diversity Consider how low-carbon hydrogen can cost-effectively support Ontario’s evolving energy system. Future Actions Review Potential Barriers to Hydrogen Use in Identify Opportunities for Clean Energy the Energy Sector Through Future-Ready Transportation Infrastructure Ontario will assess potential barriers to the use of hydrogen as a fuel for electricity Ontario released draft transportation plans generation and the inclusion of low-carbon in 2020 for Southwestern Ontario and for hydrogen and renewable natural gas in Northern Ontario. Each plan includes an Ontario’s natural gas distribution system, action to support future-ready transportation while ensuring appropriate standards and infrastructure by reviewing locations for best practices are in place. alternative fueling stations (including electric and hydrogen) for public use that will support potential private sector commercial Identify Opportunities for Clean Energy partnerships and competitiveness. Through Natural Resource Planning The transportation plans for the Greater Ontario’s ongoing planning related to Golden Horseshoe, Eastern Ontario and the resource recovery, forest sector and critical entire province are under development and minerals recognize the potential production will consider how best to support future- or use of low-carbon hydrogen in the ready infrastructure. province. This includes the Food and Organic Waste Policy Statement, the Forest Sector Strategy and proposed Forest Biomass Action Plan, as well as the Critical Mineral Strategy Framework Discussion Paper. 49

4. Promote Innovation and Investment Enable opportunities for low-carbon hydrogen use and position Ontario as a leading destination for investment. Future Actions Pursue Federal Support for Nuclear Energy sectors to consider opportunities to adopt to Facilitate Hydrogen Production hydrogen as a fuel where existing applications are known and well understood (e.g., Ontario is calling on the federal government hydrogen-powered forklifts). to allow nuclear projects to access all federal funding programs and incentives designed to Ontario will also consider information accelerate the development and deployment sessions to increase awareness of new of clean energy technologies, including those applications for hydrogen and other clean that are currently limited to renewable energy fuels to improve industrial competitiveness sources such as wind and solar. Nuclear as investors consider their environmental and energy can play a key role in hydrogen sustainability goals. production due to the production of reliable baseload electricity and steam for use in high- temperature electrolysis. Explore Innovative Procurement Strategies Ontario will explore how its government Develop Industry Guidance Materials with procurement strategies can be leveraged to Stakeholders promote the use of innovative low-carbon technologies. This could include identifying Ontario will work with stakeholders to opportunities for the purchase of low-carbon develop guidance materials to reduce hydrogen equipment and vehicles where knowledge barriers related to hydrogen applicable. equipment. The guidance materials will seek to encourage the industrial and commercial 50

5. Strengthen Collaboration Work with the private sector, the federal government, municipalities, Indigenous communities, academic institutions and other stakeholders to grow and sustain a low-carbon hydrogen economy in Ontario. Future Actions international collaboration in achieving Canada’s and Germany’s targets of net-zero Ongoing Stakeholder Engagement and emissions by 2050. Partnership Opportunities Canada and Germany have established a Building on the success of public consultations High-Level Steering Committee, co-chaired and the Hydrogen Strategy Working Group, at the Deputy Minister level, to foster the Ontario will continue to meet with hydrogen energy transformation through exchanges on sector stakeholders to gather information policy, best practices and technologies as well on additional pilot projects and research as through cooperative activities and projects opportunities to help advance Ontario’s focused on: low-carbon hydrogen economy. Ontario • Energy policy, planning and will also seek input on how to best promote regulations; collaboration among the private and public sectors to deliver innovative solutions for • Resilient electricity systems that can the future of low-carbon hydrogen in the integrate high levels of renewables; province. • Energy efficiency; • Sector coupling and low-carbon fuels; Engage Hydrogen Companies in Existing and Export Initiatives • Innovation and applied research. Ontario will engage hydrogen technology The hydrogen working group will report to companies in interprovincial and international the Steering Committee on the challenges export trade missions and shows to promote and opportunities of hydrogen trade between the province’s capabilities, increase foreign Canada and Germany. direct investment and create opportunities for export-ready businesses. Ontario will also engage with jurisdictions leading in low-carbon hydrogen to share best practices, collaborate on areas of mutual International Collaboration interest, promote current actions and attract future investment. Ontario will continue to participate on a hydrogen working group under the Canada- This includes building on existing partnerships Germany Energy Partnership signed by the and creating new opportunities to collaborate federal government in March 2021. The with jurisdictions like the U.K., France and partnership recognizes the importance of Mexico. 51 Hydrogen Strategy Working Group Members • Atura Power • Canadian Hydrogen and Fuel Cell Association (CHFCA) • Canadian Steel Producers Association (CSPA) • Cummins • dynaCERT Inc. • Emerald Energy from Waste • Enbridge Gas • EPCOR Utilities Inc. • Evolugen • GE Gas Power • H2GO Canada • Hydrogen Business Council of Canada • Hydrogen Optimized • Independent Electricity System Operator (IESO) • Nuclear Innovation Institute • Ontario Clean Technology Industry Association (OCTIA) • Ontario Environment Industry Association (ONEIA) • Ontario Power Generation (OPG) • Ontario Public Transit Association • Ontario Trucking Association • Ryerson University • Toyota • Transition Accelerator • TC Energy 52 Glossary Biogas: Mixture of gases produced by the breakdown of organic matter. Biomass: Organic matter (plant and animal material), for example forestry and crop residues, purpose- grown crops. Carbon capture, utilization, and storage (CCUS): Carbon capture use and storage is a process that captures carbon dioxide emissions (for example, when producing hydrogen from natural gas) that either uses or stores it, preventing it from temporarily or permanently entering the atmosphere. Combustion: The process of burning something, that is, the chemical reaction involving the combination of a fuel (see Fuel), heat, and oxygen. Electrolysis: A process that is performed using electricity to split water into hydrogen and oxygen gas. It is the reverse of the chemical reaction that takes place in a fuel cell. Electrolyzer: A device that uses electricity to split water into hydrogen and oxygen. Emissions-free electricity: A form of electricity that emits no greenhouse gases (see Greenhouse gas) or air emissions when produced. This includes renewable generation sources, like wind and solar and non- renewable sources, like nuclear. Feedstock: Refers to the raw material used for industrial processes. Fuel: A material used to create heat or power through conversion in processes like combustion. Fuel cell: A device that produces electricity through an electrochemical process, usually from hydrogen and oxygen. Gasification: A controlled process involving heat, steam and oxygen to convert carbon-based raw material such as coal or biomass to hydrogen and other products, without combustion. Greenhouse gas: A gas that contributes to the greenhouse effect (warming of the planet) by absorbing and emitting infrared radiation (for example carbon dioxide and methane). Grid balancing services: A suite of products and services procured by electricity grid operators to match the supply of electricity (from sources like nuclear, hydropower, natural gas, wind, solar and biomass) to the demand (for example, usage from businesses and homes). Low-carbon hydrogen: hydrogen that has few greenhouse gas emissions from its production and upstream processes, such as extraction and production of fuels used. 53 Original equipment manufacturer: A company whose goods are used as components in the products of another company, which then sells the finished item to users. Gigajoule (GJ): A unit of energy; for example, the heat generated, or energy expended. Pyrolysis: The process of using heat to decompose the chemical composition of materials such as biomass producing fuels and char. Renewable energy: A form of energy that is never exhausted because it is renewed by nature within short time scales (for example, wind, solar radiation, hydro power, biomass). Small modular reactor: A nuclear reactor that is smaller than traditional nuclear power plants. Steam methane reformation: The process for reacting natural gas with steam to produce hydrogen as a product. 54 978-1-4868-5993-1 PRINT Ontario’s Low-Carbon Hydrogen Strategy – A Path Forward