Government of Canada makes significant investment in Alberta's clean hydrogen sector and outlines next steps to help Canadian industry sectors cut pollution

Federal government working with provincial and industry partners to transition to a low-carbon future

EDMONTON, AB , Nov. 8, 2022 /CNW/ - 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. Through continued investments in clean technology innovation, like hydrogen, Canada will remain a  leader in this field.

Today, the Honourable François-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)

Quotes

"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. 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."  
– The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry

"Today's announcement is an historic investment in the net-zero economy of the future and in the Edmonton region. This investment will further position our city as a leading hydrogen production hub for Canada and North America and is part of our government's plan to ensure prosperity for generations to come. This investment is more proof that we are building an economy that works for everyone." 
– The Honourable Randy Boissonnault, Minister of Tourism and Associate Minister of Finance and Member of Parliament for Edmonton Centre

"Unlocking the potential of hydrogen is an essential part of the federal government's plan for a sustainable economic future—not just for the domestic opportunities for emissions reductions but also for hydrogen's potential as an export opportunity: to provide clean energy to countries around the globe." 
– The Honourable Jonathan Wilkinson, Minister of Natural Resources

"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." 
– The Honourable Danielle Smith, Premier of Alberta

"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 from the Alberta Petrochemicals Incentive Program for Air Products' clean hydrogen facility, we are creating jobs, growing the energy sector and bringing clean hydrogen to customers across Western Canada." 
– The Honourable Pete Guthrie, Minister of Energy, Government of Alberta

"Today's announcement brings Edmonton one step closer on the energy transition journey toward becoming a carbon-neutral city. Investing in an Edmonton-based clean hydrogen facility will help with our city's post-pandemic economic recovery efforts and will allow Canada to advance clean energy in the global hydrogen market. I am appreciative that both our federal and provincial government partners and Air Products are prioritizing Edmonton's climate and hydrogen goals, and I look forward to future collaborations that will advance this work." 
– The Honourable Amarjeet Sohi, Mayor of Edmonton

"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. We are pleased to recognize the successful completion of support agreements that have allowed us to make additional engineering enhancements to reach an even cleaner world–class design. This facility will be a first mover in helping to decarbonize mobility and industrial markets, further demonstrated by an already announced and substantial off-take supply contract. Today's 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." 
– Seifi Ghasemi, Chairman, President and CEO, Air Products Canada

Quick facts

• In June 2021, Minister Champagne announced that the Government of Canada, along with the Province of Alberta and the local municipal government, was working closely with Air Products.
• The project by Air Products involves building a major new hydrogen production and liquefaction complex that would make Edmonton a hub for western North America in the hydrogen economy and deliver substantial economic benefits to the region.
• In 2021, Emissions Reduction Alberta announced funding of $15 million for this project.
• The term "blue hydrogen" refers to a process whereby hydrogen is produced using natural gas and the carbon dioxide (CO₂) emissions generated from the process are captured and stored. Storing CO₂ rather than releasing it into the atmosphere reduces process-related greenhouse gas (GHG) emissions and results in low–carbon hydrogen.
• Air Products Canada Ltd. was incorporated in 1997 and has been actively engaged in helping Canada's upgrading and refining sector produce cleaner energy products. Air Products Canada currently operates three hydrogen production facilities in Alberta and a 55 kilometre hydrogen pipeline network that supplies customers in the Alberta Industrial Heartland region. The company also operates a hydrogen production facility, a pipeline network and a liquefaction facility in Sarnia, Ontario. Globally, Air Products has a 60-year track record in reliably supplying hydrogen around the world.
• The Strategic Innovation Fund's Net Zero Accelerator initiative supports investments that establish Canada as a global clean technology leader, enabling decarbonization and industrial transformation while capitalizing on new growth opportunities in Canada and in international markets.
• This announcement is a continuation of the government's commitment to net zero through its support for projects like the ArcelorMittal Dofasco project and the project by steelmaker Algoma in Sault Ste. Marie. These two projects alone stand to reduce Canada's GHG emissions by around 1% nationally, representing over a third of Canadian heavy industry's GHG reduction goal to meet 2030 targets.

Associated links

• Air Products Canada Ltd.
• Strategic Innovation Fund
• A Healthy Environment and a Healthy Economy
• Net Zero Accelerator initiative
• 2030 Emissions Reduction Plan: Clean Air, Strong Economy
• Hydrogen Strategy for Canada
• Alberta's Natural Gas Vision and Strategy
• Alberta Petrochemicals Incentive Program
• New Edmonton Blue Hydrogen Hub – Emissions Reduction Alberta (eralberta.ca)

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SOURCE Innovation, Science and Economic Development Canada

For further information: Contacts: Laurie Bouchard, Senior Manager, Communications, Office of the Minister of Innovation, Science and Industry, [email protected], Media Relations: Innovation, Science and Economic Development Canada, [email protected]