FNEMC Hydrogen Report Nov.2025

Press Release

February 3, 2026

Hydrogen can be produced through different pathways, each with distinct environmental and economic characteristics. Green hydrogen, produced using renewable electricity to power electrolysis, generates no direct greenhouse-gas emissions at the point of production. Blue hydrogen, derived from natural gas with carbon capture systems, can significantly reduce emissions compared to conventional fossil-fuel use, though performance depends on capture rates and upstream methane management. Grey hydrogen, produced from natural gas without carbon capture, remains emissions intensive. Life-cycle assessments show that the total carbon intensity of hydrogen varies widely depending on feedstock, electricity source, and the efficiency of production, storage, and transportation systems.

According to Natural Resources Canada, hydrogen could meet up to 30 percent of national energy demand by 2050, potentially avoiding about 90 million tonnes of CO₂-equivalent emissions annually. However, these projections depend on factors such as technology costs, renewable-energy availability, infrastructure development, and long-term market conditions.

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