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

Alberta is currently the largest hydrogen producer in Canada and this new $1.6-billion facility is expected to create 2,500 construction jobs and 30 permanent jobs once operational.

“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,” said Danielle Smith, Premier of Alberta. “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.”

Through APIP, Alberta’s government is supporting Air Products’ new natural gas to hydrogen production facility. 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.

“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,” says Seifi Ghasemi, chairman, president and CEO of Air Products.

According to Ghasemi, 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.”

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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. An additional $15 million will be provided through Emissions Reduction Alberta.

Along with Alberta’s APIP funding, the Government of Canada 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,” said 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.”

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

For further information, visit: Hydrogen Roadmap

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