THUNDER BAY – TECHNOLOGY UPDATE: In a major step toward powering Ontario’s clean energy economy, the provincial government has announced it is doubling the Hydrogen Innovation Fund to $30 million, aiming to fast-track hydrogen-powered innovation across energy, transportation, and industrial sectors.
Unveiled by the Ministry of Energy and Mines on March 31, 2025, the expanded fund will support more hydrogen pilot projects—especially those integrating hydrogen into Ontario’s electricity grid and transportation systems, including applications like the Hydrail (hydrogen rail) project previously reported by NetNewsLedger.
Clean Energy with Local Impact: Hydrail and Transportation Innovation
photo credit: Detlef Matthiessen, Green Party Delegation Leader-Emeritus, Schleswig-Holstein Parliament (Landtag).
Thunder Bay has played a key role in the conversation around clean transportation with ongoing attention to Hydrail initiatives—hydrogen-powered trains that promise emission-free travel and freight in regions like Northwestern Ontario. The new funding could help accelerate deployment of clean rail infrastructure, offering opportunities for local innovation, manufacturing, and green job creation.
Hydrogen is expected to represent up to 18% of Canada’s energy mix by 2050, and the Ontario government is pushing to make the province a hydrogen hub, building on its strengths in nuclear energy, advanced manufacturing, and natural resource development.
$30 Million to Power Grid-Ready and Industrial Hydrogen Projects
The 2025 Hydrogen Innovation Fund, administered by the Independent Electricity System Operator (IESO), will support two main categories:
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Electricity-Linked Projects: Integration of hydrogen for grid balancing, seasonal energy storage, and peak generation.
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Cross-Sector Innovation: Including hydrogen for transportation, mining, cement, steel, and local energy hubs.
Ontario’s low-carbon hydrogen strategy, first introduced in 2022, is being refreshed, with stakeholder feedback expected to shape the next steps.
Why It Matters for Thunder Bay and Northern Ontario
For Thunder Bay and the Northwest, where energy reliability, transportation access, and industrial diversification are constant challenges, hydrogen offers a flexible, scalable solution.
Hydrogen’s use in remote power generation, rail corridors, and mining operations aligns perfectly with the region’s infrastructure and climate needs. Companies like dynaCERT, which has been active in York South–Weston but is eyeing broader deployment, applaud the expanded fund as a “game-changer.”
“Hydrogen is more than a clean fuel; it can be a game-changer for building independent local supply chains,” said Maike Althaus, Executive Director of Hydrogen Ontario. “Let’s seize Ontario’s hydrogen opportunity to power key industries and build a cleaner, more competitive future.”
The Road Ahead: A Clean, Competitive, Made-in-Ontario Energy Future
This investment is just one piece of Ontario’s larger “Affordable Energy Future” plan, which includes:
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A new integrated energy planning strategy
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A bold nuclear expansion, including small modular reactors
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New transmission infrastructure to support EV and battery production
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Expansion of energy efficiency programs to reduce costs for families and businesses
As global energy landscapes shift, Ontario is pursuing an “all-of-the-above” strategy—including hydrogen—to secure domestic energy independence and reduce reliance on U.S. imports.
“The world has changed with the election of President Trump,” said Minister Stephen Lecce, “and that’s why our government is embracing Canadian energy leadership, made right here in Ontario.”
What’s Next
Successful applicants to the fund will be announced in early 2026, with dozens of companies, institutions, and municipalities expected to propose grid, mobility, and industrial hydrogen solutions.
As NetNewsLedger continues its coverage of Hydrail, clean tech jobs, and Northern energy innovation, stay tuned for updates on local partnerships, project funding, and Thunder Bay’s potential role in Canada’s hydrogen-powered future.
