Government of Alberta

By rdnewsNOW Staff

Energy Business

Province announces major investment in Alberta’s hydrogen sector

Nov 9, 2022 | 6:48 PM

Alberta’s government says it is awarding more than $161 million in funding from the Alberta Petrochemical Incentive Program (APIP) to grow Alberta’s clean hydrogen sector.

The government says Alberta’s economy has momentum and they are focused on creating more jobs and diversifying as the province continues to be an economic engine for Canada.

The government says Alberta is the largest hydrogen producer in Canada and it is helping to power the province’s – and country’s – economies. This new $1.6-billion facility is expected to create 2,500 construction jobs and 30 permanent jobs once operational.

Through APIP, Alberta’s government says it is supporting Air Products’ new natural gas to hydrogen production facility. Officials say the facility is designed to produce clean hydrogen using advanced natural gas conversion techniques and carbon capture utilization and storage (CCUS) technology to permanently store the resulting carbon dioxide.

“Alberta is Canada’s hydrogen powerhouse and projects like this will create jobs, diversify the economy and build additional clean energy capacity for use across Western Canada. With such a huge attachment in the hydrogen market, our government’s Alberta Petrochemicals Incentive Program is making us the most attractive jurisdiction for companies looking to invest in hydrogen. Alberta’s economy will continue to charge ahead full steam with an investment climate that encourages businesses to grow and fuel job growth,” says Danielle Smith, Premier of Alberta.

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“From the beginning, Air Products has truly and sincerely appreciated the partnership of the Government of Canada and the Government of Alberta, as well as the continued support of the City of Edmonton, in welcoming this visionary clean energy complex to Alberta,” adds Seifi Ghasemi, chairman, president and CEO, Air Products. “This facility will be a first mover in helping to decarbonize mobility and industrial markets. This announcement represents visionary leadership and a commitment to move humanity forward in the energy transition. It shows what is possible when effective collaboration and governmental support align to drive the energy transition.”

“Alberta’s hydrogen sector is growing rapidly, with more and more hydrogen-powered projects coming online over the coming years. With more than $161 million in funding for Air Products’ clean hydrogen facility, we are creating jobs, growing the energy sector and bringing clean hydrogen to customers across Western Canada,” adds Pete Guthrie, Minister of Energy.

The government says APIP provides funding to support the growth of facilities that use natural gas in their production processes, including those that produce clean hydrogen. The Air Products’ facility is eligible for $161.5 million in grants spread out over three years, once the facility is up and running, say government officials. An additional $15 million would be provided through Emissions Reduction Alberta.

Along with Alberta’s APIP funding, the Government of Canada has also announced a federal contribution of $300 million through the Strategic Innovation Fund’s Net Zero Accelerator Initiative to support the project.

“We need to be bold and seize the moment, and that’s exactly why we’re investing in Air Products. We are prioritizing a strong and sustainable economy, helping create well-paying jobs and ensuring a cleaner future,” exclaims François-Philippe Champagne, federal Minister of Innovation, Science and Industry. “Hydrogen is one of the key elements for our path to net zero, and that’s why we’re making these important investments in Canada’s energy sector. We’re also ready to build on this ambition by supporting and working with high-emitting sectors in decarbonizing, creating more jobs across the country and growing for generations to come.”

Officials say the Air Products facility will be established in Alberta’s Industrial Heartland, northeast of Edmonton, which already features an industrial hub with a number of connected sites and industries working to advance a hydrogen economy. Construction on the project is expected to start soon.

When completed in late 2024, the facility is expected to produce more than 165 million standard cubic feet of hydrogen per day. That hydrogen, says the government, may be used in a variety of markets, including industrial, transportation, power generation and utility heating.

APIP is said to be attracting billions of dollars in investment through petrochemical projects, helping to strengthen and diversify the provincial economy and create new jobs for thousands of Albertans.

Alberta government quick facts

• Hydrogen is expected to be a $2.5-trillion to $11-trillion global industry by 2050.
• Alberta is currently the largest hydrogen producer in Canada and research suggests that Alberta can produce some of the lowest-cost clean hydrogen in the world.
• The Alberta Petrochemicals Incentive Program was launched in October 2020.
• Alberta launched its Hydrogen Roadmap in November 2021 and the Hydrogen Centre of Excellence in April 2022.
• According to the Chemistry Industry Association of Canada, Alberta’s chemicals sector, comprised predominantly of petrochemicals, was valued at $15.9 billion and employed about 35,605 people directly and indirectly in 2021.
• The Alberta Industrial Heartland Association estimates that the province’s petrochemical industry could attract $30 billion in total investments between 2020 and 2030.