Guest Contributor: Derek Estabrook, Executive Director, Atlantic Hydrogen Alliance
The global energy landscape is transforming rapidly. With a diverse mix of traditional and emerging energy resources and access to key export markets, Atlantic Canada is uniquely positioned to lead this transition. Hydrogen is emerging as a critical piece of Atlantic Canada’s energy future – a transformational sector that can drive economic prosperity, create jobs, diversify international trade, and significantly reduce emissions both locally and globally.
Over recent months, I’ve spoken with industry leaders, project developers, policymakers, and energy experts to get beyond the headlines and into the heart of Atlantic Canada’s hydrogen story – what’s real versus hype? what’s emerging, and what challenges must be overcome for opportunity to become reality?
While the road ahead is uncertain, momentum is building. The hydrogen costs are poised to drop, hydrogen markets are emerging, and both government and industry are committed. With smart investments, strategic policy, regional collaboration, and long-term thinking, Atlantic Canada can turn this early promise into tangible progress.
Awakening the Sleeping Giant
During my discussion with Michelle Robichaud, President of the Atlantica Centre for Energy, on the Atlantic Canada’s Hydrogen Journey podcast, she described Atlantic Canada as a “sleeping giant” in Canada’s energy system; the current focus on energy security, trade diversification, and sovereignty could serve as our “alarm clock” to awaken this potential.
Our regional advantages position Atlantic Canada to lead in the green hydrogen sector. Ice-free deepwater ports provide direct access to international markets, while our strategic location positions us closer to European markets than most North American competitors. Most importantly, wind – both onshore and offshore – represents our most abundant natural resource. While we cannot export wind directly, we can harness it to generate the affordable renewable electricity essential for green hydrogen production.
The foundation for the hydrogen sector in Atlantic Canada has already been laid. Decades of experience in offshore oil, natural gas, onshore wind, and refining have created energy infrastructure and expertise that can be leveraged for large-scale production of green hydrogen and derivatives like ammonia, methanol, and sustainable aviation fuel.
International Demand Creates Market Opportunity
Western European countries are driving hydrogen demand through ambitious emission reduction targets and renewable energy goals. Industries across Europe are seeking reliable, large-scale green energy suppliers, creating market conditions that could transform Atlantic Canada into a global clean energy leader.
A wave of green hydrogen export projects in development across the region demonstrate that the opportunity is real and near-term, not theoretical or distant.
Domestic Applications Strengthen the Foundation
While hydrogen export projects capture headlines, domestic hydrogen applications also offer compelling opportunities. Hydrogen can help decarbonize hard-to-abate sectors including heavy transportation, shipping, marine vessels, and high-temperature industrial processes where electrification alone is impractical. Additionally, blending hydrogen into existing natural gas networks in Nova Scotia and New Brunswick can reduce the carbon intensity of the gas system.
Developing domestic hydrogen markets face the classic “chicken and egg” challenge – hydrogen producers need demand to justify investments while users need reliable supply. Hydrogen hubs address this challenge by bringing together hydrogen production, distribution, storage, and end-use in localized areas, creating robust value chains. Promising hub locations include Saint John, the Port of Belledune, and the Halifax area, each leveraging existing infrastructure and strategic advantages.
Addressing Strategic Challenges
Despite our advantages, significant hurdles must be overcome to realize the full potential of hydrogen in Atlantic Canada. Policy gaps, regulatory barriers, high production costs, incomplete supply chains, and social license issues all require systematic attention. Most fundamentally, we need customers – both domestic and international – willing to pay prices needed to make projects in Atlantic Canada economically viable.
Building hydrogen value chains from scratch is inherently difficult and expensive because the necessary infrastructure doesn’t exist like it does for electricity or fossil fuels. Every component – from production facilities to distribution networks to end-use applications – must be developed simultaneously.
Perhaps most critically, regional coordination and collaboration are essential. A fragmented regulatory landscape where each province develops their own hydrogen regulations, codes, and standards would create unnecessary barriers, increase costs, delay projects, and discourage investment. Atlantic Canada’s Premiers have committed to removing interprovincial trade barriers, and the emerging hydrogen sector presents an opportunity to prevent barriers from forming by developing coordinated, consistent regulations, codes, and standards from the outset.
Public support and social license are equally crucial. Our region has experienced large energy projects that faced opposition despite potential benefits, leading to costly delays. Building trust requires transparent communication and meaningful engagement and partnerships with all communities, including First Nations, that address benefits, risks, and safety considerations honestly and comprehensively.
Workforce development adds another essential dimension. Success requires targeted training programs, up-skilling existing workers from sectors like oil and gas, and engagement with educational institutions to build the human capital needed for long-term success.
Unity as Competitive Advantage
A bold, unified Atlantic Canada energy vision can transform individual provincial efforts into regional strength. Rather than competing separately, collaborative approaches amplify our collective advantages in ways that each province cannot achieve alone.
Regional collaboration aligns policies, prevents interprovincial barriers, attracts larger-scale investment, and positions Atlantic Canada as a leader in global hydrogen markets. Success requires coordinated effort across industry, governments, First Nations, communities, and academia to build infrastructure, foster partnerships, create supportive regulatory environments, secure public support, and develop workforce capabilities.
The Path Forward
Atlantic Canada stands at a pivotal moment. Our region has the natural resources, strategic positioning, growing international partnerships, and emerging infrastructure necessary for hydrogen leadership.
Success demands acknowledging both opportunities and challenges while committing to collaborative solutions that transcend traditional boundaries. Our hydrogen journey is beginning, but the destination is clear: a prosperous, sustainable energy future benefiting all Atlantic Canadians while contributing meaningfully to regional and global climate objectives.
Derek Estabrook is Executive Director of the Atlantic Hydrogen Alliance, a not-for-profit industry association committed to advancing a thriving low-carbon hydrogen sector in Atlantic Canada. To learn more, check out the Atlantic Hydrogen Alliance hydrogen podcast series in partnership with Reimagined Energy, wherever you listen to podcasts.