Canada is becoming a strong market for companies with solutions in hydrogen, renewable fuels, carbon capture, industrial decarbonization, and clean energy infrastructure.
Canada presents significant opportunities in low-carbon hydrogen, clean and renewable fuels, carbon capture, utilization, and storage (CCUS), and industrial decarbonization. Hydrogen is seen as a major clean energy growth area; 13 operational low-carbon hydrogen facilities and roughly 80 production projects have been announced, representing over $100 billion in potential investment and more than 5 million tonnes per year in production capacity. Canada is also building regional hydrogen hubs in Edmonton, Vancouver, Southern Ontario, and Atlantic Canada, creating opportunities across production, storage, transportation, refuelling, fuel cells, ammonia conversion, and end-use applications in heavy transport, industrial heat, refining, chemicals, and power.
Federal incentives (including the Clean Hydrogen Investment Tax Credit (CHITC)) are intended to improve project economics. The CHITC can cover 15% to 40% of eligible clean hydrogen project costs, while related credits support clean electricity, clean technology manufacturing, and CCUS equipment. The federal government is also supporting clean fuels through programs such as the Clean Fuels Fund, with renewed funding of $776.3 million from 2024-25 to 2029-30. It has recently announced more than $11 million for clean and alternative fuel projects, including renewable diesel, sustainable aviation fuel, biomass supply chains, hydrogen feasibility studies, and industrial fuel switching.
Carbon capture, utilization, and storage is another major opportunity for Canada, particularly in the west. Canada is ranked fourth globally in planned CCUS capacity, with 45.6 Mt of CO₂ expected by 2030 (equal to 11.5% of the global total). Alberta and Saskatchewan already have operating projects, established CO₂ pipeline infrastructure, and proven storage formations. The Alberta Carbon Trunk Line can transport 14.6 million tonnes of CO₂ per year, and Canada’s total storage potential is estimated at 389 Gt, concentrated mainly in Alberta, Saskatchewan, and Manitoba.
According to the Canadian Association of Petroleum Producers (CAPP), commercial CCUS opportunities in Canada include capture technologies, CO₂ transport and storage hubs, direct air capture, bioenergy with CCS, hydrogen production with CCUS, decarbonization in cement and refining, and services such as engineering, monitoring, permitting, and long-term storage management. Planned projects are expected to substantially increase Canada’s capture capacity, with more than 30 projects in Western Canada spanning operational, under-construction, planned, and early-stage developments.
For exporters, the strongest opportunities in Canada extend beyond equipment sales. Canadian projects will require integrated solutions, including feasibility studies, permitting support, EPC services, financing partnerships, workforce training, digital emissions platforms, and operations and maintenance. Key entry points include partnerships with Canadian project developers, provincial energy agencies, utilities, Indigenous-owned enterprises, and large industrial emitters pursuing hydrogen, clean fuels, CCUS, and broader decarbonization projects.
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