Government of Canada makes significant investment in Alberta’s clean hydrogen sector

Government and industry are working together to build a clean and strong economy that supports good jobs and positions Canada as a reliable supplier of energy in a net-zero world.

Canada will remain a leader in this field through continued investments in clean technology innovation, like hydrogen.

Today, the Honourable Fran├žois-Philippe Champagne, Minister of Innovation, Science and Industry, the Honourable Randy Boissonnault, Minister of Tourism and Associate Minister of Finance, and the Honourable Pete Guthrie, Minister of Energy, Government of Alberta, announced another major step forward on the path to net zero. The federal government will invest $300 million through the Strategic Innovation Fund’s Net Zero Accelerator initiative alongside a provincial contribution of $161.5 million to support a $1.6 billion project by Air Products Canada Ltd. to advance clean fuels and clean energy in Canada and secure hundreds of middle-class jobs. These contributions will support the construction, in Edmonton, of a hydrogen production and liquefaction facility that uses autothermal reforming and carbon capture technology.

Through this project, Air Products will create and maintain 230 highly skilled jobs in Canada and will help provide clean hydrogen to refinery customers, Alberta’s electricity grid and the transportation industry. With this new facility, Air Products will also help to accelerate the growth of Canada’s hydrogen economy and position Edmonton as a hub for hydrogen production. The investment in Air Products supports actions outlined in the Hydrogen Strategy for Canada to lay the foundation for success.

In addition to this investment, the Government of Canada announced that the first assessment phase from the call to action for high-emitting sectors to move to lower-pollution practices has been completed. Ten projects have been selected to move forward to phase 2, where proponents will present their projects to an interdepartmental panel of experts for further assessment; this will begin the due diligence process. These companies were assessed as promising early movers that would contribute to the decarbonization of their sectors. These companies are primarily focused on delivering critical services and materials, including electricity generation, hydrogen production and iron for the steel industry. Based on the companies’ own estimates, these projects would create a reduction in GHG emissions of up to 10 million tonnes by the year 2030, or roughly equivalent to taking 2 million cars off the road.

We are excited to announce that projects by these 10 companies have been selected to move forward:

  • Capital Power Corporation
  • ENMAX (Shepard Energy Centre)
  • Federated Co-operatives Limited (FCL)
  • Strathcona Resources Ltd.
  • Lafarge Canada Inc.
  • ArcelorMittal Mining Canada G.P.
  • Suncor ATCO Heartland Hydrogen Hub
  • Alberta Power (2000) Ltd. (Heartland Generation)
  • Stelco Inc.
  • Dow Chemical Canada ULC (Decarbonization Component)
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