The Canadian federal and the Alberta provincial governments have announced approximately C$475 million in project funding for Air Products’ multi-billion-dollar net-zero hydrogen energy complex in Alberta.
The plan is for the facility, already being executed, to make Edmonton, Alta., the center of Western Canada’s hydrogen economy and set the stage for Air Products to operate one of the most competitive and lowest-carbon-intensity hydrogen networks in the world.
Since the project’s announcement last year (GM June 18, 2021), Air Products has signed a customer agreement with Imperial Oil Ltd. to take approximately 50% of the low-carbon hydrogen from the 165 million standard cubic feet per day hydrogen production facility. This offtake agreement also saw Air Products increasing the facility’s investment from $1.3 billion to $1.6 billion, as well as including engineering enhancements to the production process that will further reduce greenhouse gases at the facility.
The $485 million government funding will come from three separate agreements: $300 million from the Strategic Innovation Fund (SIF), the Government of Canada’s program designed to spur innovation for a better Canada by providing funding for large projects and national innovation ecosystems; over $160 million from the Alberta Petrochemicals Incentive Program (APIP), part of Alberta’s Recovery Plan to bring multi-billion dollar investments to industrial projects throughout Alberta, add value to natural gas production in the province, and help to strengthen, diversify, and bring new life into the province’s economy and create new opportunities and jobs for Albertans; and $15 million, which was previously announced, from Emissions Reduction Alberta’s Shovel-Ready Challenge, which aims to help deliver on the province’s environmental and economic goals by investing in clean technology that cuts greenhouse gases, attracts investment, and creates jobs in Alberta.