Hydrogen will play an important role, along with electrification, in the transition to zero-emission light-duty vehicles. zero emissions. The Government of Canada has set federal targets for zero-emission vehicles to reach 10% of annual light vehicle sales by 2025, 30% by 2030 and 100% by 2040. of light vehicle sales by 2025, 30% by 2030 and 100% by 2040. Canada considers battery electric vehicles (BEVs) Canada considers battery electric vehicles (BEVs), fuel cell electric vehicles (FCEVs) and plug-in hybrid electric vehicles (PHEVs) as ZEVs. BC and Quebec have led at the provincial level in adopting ZEV purchase incentives and sales regulations, and both provinces have begun deploying hydrogen fueling infrastructure and FCEVs in limited quantities.

FCEVs offer options for vehicle owners who prefer larger vehicles larger vehicles, longer range, fast refueling and uncompromising weather and uncompromising performance in cold climates. COLD WEATHER. Canadian consumers have shown growing demand for larger vehicles, with 80% of national spending on new vehicles 80% of national spending on new vehicles is on large-displacement vehicles, vans or SUVs. SUVs. This is an indication that consumers will continue to will continue to want to choose and will not focus on choosing the will not always focus on choosing the higher efficiency vehicle option, but will more efficient vehicle option, but rather they will of vehicles, but rather will weigh vehicle performance and vehicle size in making their choice. and vehicle size in their decision making.

FCEVs are likely to be more attractive to drivers in Canadian urban centers where a higher proportion of of households live in multi-unit residential buildings (condominiums, apartments, townhouses with shared garages). shared garages) where cost and building regulations can make refueling stations expensive and difficult to install, provided they feel well-served by the hydrogen fueling infrastructure. In addition, households that In addition, households that rely on on-street parking may opt for FCEVs over BEVs because of the convenience.

Although lightweight FCEVs are currently commercially available, they are still produced on a relatively small scale and one of the biggest impediments to their deployment in Canada in the near term is supply. The availability of refueling infrastructure is another key challenge, and the two are related, as the supply of vehicle of vehicles is limited, in part because OEMs will only deploy their limited number of vehicles in regions with installed retail fueling networks.

In Canada, there are 7 hydrogen fueling stations open to the public. There are also other stations for private use