Canada hydrogen sector faces defining year as projects seek momentum

Argus reports that Canada hydrogen sector stakeholders see 2026 as a make-or-break year for turning strategies and incentives into tangible project development.

Canada’s hydrogen industry enters 2026 under pressure after project delays, cancellations and slower-than-expected demand growth, yet the country remains one of the world’s leading low-carbon hydrogen producers.

Despite setbacks, it ranked as the second-largest producer in 2024 and holds significant committed capacity, highlighting its long-term potential.

Government funding initiatives, including support for renewable hydrogen and ammonia projects, alongside investment tax credits covering a substantial share of capital costs, could help revive stalled developments.

Greater regulatory clarity in key export markets and progress on domestic projects will be crucial in determining whether Canada can convert ambitions into operational capacity.

Source: Jasmina Kelemen, Argus

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