August 24, 2023

Alberta Stories

Investing in Alberta’s Hydrogen Sector: Frequently Asked Questions 

As the world transitions towards a low-carbon future, hydrogen has emerged as a key driver of decarbonization. Alberta, with its abundant natural resources and commitment to energy innovation, is making significant progress establishing itself as a global leader and innovation hub in the hydrogen sector.   

Interested in Alberta’s hydrogen sector? We’ve pulled together answers to the questions we get asked most frequently. Have a look and let us know what you think.   

  1. Why is Alberta an attractive destination for hydrogen investments?  

Alberta possesses vast reserves of low-cost natural gas and is strategically located near major markets, making it an ideal location for hydrogen production. The existing pipeline infrastructure provides a strong foundation for the transportation and storage of hydrogen. Therefore, Alberta’s supportive regulatory framework, skilled workforce, and collaborative ecosystem foster a favorable environment for hydrogen investments. 

Alberta, the largest producer of hydrogen in Canada, possessing a unique combination of factors that make it an ideal hub for hydrogen production and utilization. With its geology well-suited for carbon capture and storage, the province currently has 25 hubs under development, showcasing its commitment to sustainable practices. The existing demand for hydrogen in Alberta is substantial, particularly from its industrial clusters. However, efforts are underway to create new pathways for hydrogen usage, such as transportation and blending it into natural gas for heat.  

Alberta’s significant investment in renewable energy projects opens up opportunities to produce green hydrogen, leveraging the abundance of renewable resources. In terms of workforce capabilities, Alberta’s industries and workforce have extensive knowledge and expertise in safely producing, handling, and utilizing hydrogen at an industrial scale. This expertise ensures that Alberta is well-prepared to harness the economic and environmental potential of hydrogen and drive further growth in the province’s energy sector. 

  1. How is Alberta progressing towards becoming a global leader in the hydrogen sector?  

Alberta has established a comprehensive roadmap to position itself as a global leader in the hydrogen industry. The province is investing in research and development, innovation hubs, and demonstration projects to further drive technological advancements and commercialization. Alberta’s Hydrogen Roadmap outlines a clear strategy for developing hydrogen infrastructure, promoting domestic and international collaborations, and building the hydrogen economy to support various sectors, including transportation, industry, and power generation. 

Alberta Innovates, a leading research and innovation agency in the province, has established the Hydrogen Centre of Excellence to spearhead advancements in hydrogen technologies and position itself as key pillar in Alberta’s innovation strategy. This centre serves as a hub for collaboration between industry, academia, and government, driving research, development, and deployment of hydrogen-related initiatives. . This center serves as a hub for collaboration between industry, academia, and government, driving research, development, and deployment of hydrogen-related initiatives.  

Notably, the Edmonton Hydrogen Hub, situated in Alberta, holds the distinction of being the first hydrogen hub in Canada. This pioneering initiative aims to accelerate the adoption of hydrogen technologies by fostering partnerships, promoting investment, and supporting the growth of hydrogen infrastructure. Through these endeavors, Alberta is solidifying its position as a frontrunner in the hydrogen sector and contributing to the province’s sustainable economic development. 

  1. What are the major applications of hydrogen in Alberta?  

Hydrogen in Alberta has versatile applications across multiple sectors. In transportation, hydrogen fuel cell vehicles are gaining traction – offering zero-emission mobility. The industrial sector can utilize hydrogen as a feedstock for cleaner manufacturing processes, while the power generation sector can leverage hydrogen for clean electricity production. Moreover, hydrogen blending in natural gas networks and hydrogen-based energy storage are other areas of opportunity.  

  1. Are there any specific government programs or incentives for hydrogen investors?  

The Government of Alberta is committed to supporting the development of the hydrogen sector. Various programs and incentives are available to attract investments and promote hydrogen-related projects. This includes funding for research and development, grants for demonstration projects, and tax incentives for hydrogen infrastructure development. Alberta’s commitment to advancing the hydrogen industry creates a supportive investment environment for interested stakeholders.  

For example, the Alberta petrochemical incentives program offers a range of benefits that contribute to the growth and diversification of the province’s petrochemical industry. By providing attractive financial incentives and support, the program encourages companies to invest in Alberta, fostering job creation and economic development. Additionally, the program helps to attract new petrochemical projects, stimulating innovation and technological advancements in the sector. 

In addition, the federal government has established the Clean Hydrogen Investment Tax Credit in Canada to promote clean hydrogen as a vital element of a sustainable energy transition. This program incentivizes private sector investments, fostering innovation, economic growth, and environmental sustainability. By offering financial incentives, it encourages businesses to develop clean hydrogen technologies, reducing greenhouse gas emissions and promoting renewable energy. Moreover, it generates jobs, drives economic activity, and positions Canada as a global leader in the clean hydrogen industry. Through this tax credit, Canada advances climate goals, diversifies its energy mix, and paves the way for a cleaner, resilient future. 

  1. How does innovation play a role in Alberta’s hydrogen sector?  

Innovation is a cornerstone of Alberta’s hydrogen sector. The province’s focus on advancing hydrogen technologies, including electrolysis and carbon capture, utilization, and storage (CCUS), is driving innovation and cost reductions. Collaborative partnerships between industry, research institutions, and government agencies foster the development of breakthrough technologies and accelerates the deployment of hydrogen solutions. Alberta’s commitment to innovation positions itself as an attractive destination for investors seeking to capitalize on the future of clean energy. 

Investing in Alberta’s hydrogen sector presents a compelling opportunity for those looking to contribute to the global transition towards a low-carbon economy. With its abundant resources, supportive regulatory framework, and focus on innovation, Alberta is poised to become a global leader and innovation hub in the hydrogen industry. By leveraging government programs and incentives, driving innovation, and capitalizing on diverse hydrogen applications, investors can actively participate in Alberta’s journey towards a sustainable and prosperous hydrogen future.  

If you’re interested in learning more about opportunities in Alberta’s hydrogen sector for your business endeavours, reach out to our experts, Stacie Lara and Chris Tilleman, in Alberta’s energy sector: Contact – Invest Alberta 

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