Alberta has lined up a large slate of world-scale blue hydrogen-related production projects, including many for export, while the provincial government is working diligently to create a hydrogen economy in the Canadian province with support from the federal government.

Previously the remit of the now-defunct associate ministry of natural gas and electricity, hydrogen was rolled under the energy ministry when new Alberta premier Danielle Smith swore in her cabinet in late October.

To learn more about the province’s budding blue hydrogen industry, what the Canadian government is doing to support regional efforts and what more it needs to do, Hydrogen Economist interviewed Peter Guthrie, Alberta’s new minister of energy.

The Alberta government launched its clean hydrogen roadmap in November 2021. What do you see as the province’s key hydrogen accomplishments to date?

Guthrie: Alberta is already Canada’s leader in hydrogen—and we have the potential to be a leader on the global stage. Several national and international companies have announced plans to invest in hydrogen right here in Alberta. This includes companies such as Mitsubishi, Shell, Itochu and Petronas, as well as Canada-based companies such as Atco and Suncor.

In 2022, [industrial gases company] Air Products announced its C$1.6bn [$1.17bn] net-zero hydrogen complex, expected to come onstream in 2024. Through the Alberta Petrochemicals Incentive Program, Alberta’s government provided C$161.5mn to support this facility and continue to grow our clean hydrogen sector. In January 2023, Imperial Oil announced it is investing C$720mn for the largest renewable diesel facility in Canada. Through the process, it will use low-carbon hydrogen produced with CCS technology to help meet low emission fuel standards.

We are continuing to explore innovation and technology through the Hydrogen Centre of Excellence. Not to mention, we issued a request for an expression of interest for hydrogen fuelling stations, starting with commercial vehicles.

Do you believe Alberta is on its way to becoming a major producer and exporter of clean hydrogen/ammonia? If so, why?

Guthrie: Alberta is working diligently to improve market access and establish the necessary infrastructure for hydrogen-exports such as ammonia. Our efforts include working with other governments, regulators, and industry to streamline approvals and determine appropriate regulatory processes—ultimately to get ammonia to international markets such as Japan and South Korea. Exporting Alberta LNG or ammonia to replace other energy sources in these countries could help reduce global greenhouse gas emissions by millions of tonnes per year.

The federal government is a big supporter of the clean hydrogen industry in Canada, having launched its own strategy in December 2020. How has it supported the development of Alberta’s industry so far?

C$161.5mn – Alberta government aid towards Air Products net-zero hydrogen complex

Guthrie: The federal government’s national hydrogen strategy aligns closely with Alberta’s Hydrogen Roadmap, focusing on similar sectors where hydrogen can be incorporated into the existing energy system. We saw a commitment from the federal government to Air Products’ net-zero hydrogen complex, mentioned before, from the Strategic Innovation Fund. We are in the midst of discussions with the federal government on ways we can address critical infrastructure gaps in export opportunities, including rail transport of ammonia.

What more should the federal government do to support Alberta’s clean hydrogen industry? And why should it do so?

Guthrie: Many federal programmes support zero-emission vehicles in the transportation sector but focus on battery-electric vehicles, where hydrogen-powered ones would offer similar economic and environmental benefits. This could have a major effect on the early adoption of hydrogen-powered vehicles here in Canada and help reduce emissions in our transportation sector.

Alberta continues to call on the federal government to stop moving regulatory goalposts, remove ongoing constraints and avoid delays that impact investor confidence in critical infrastructure projects.

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Author: Vincent Lauerman