Alberta announces $45 million to fund hydrogen innovation

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Calgary — Alberta is investing $45 million in projects by researchers, companies or industry associations that will advance the province’s hydrogen fuel technologies.

The funding will be funnelled through two competitions that will select a proposal in its early stages of development and another that is closer to completion. The first competition will be held by Emissions Reduction Alberta and the second will be hosted by Alberta Innovates, the province’s research agency.

The applicants will find better ways to produce, store and distribute hydrogen that, in turn, powers heavy-duty transportation and drives industrial, commercial and residential heating.

“Alberta is known for its entrepreneurial spirit and, as we are already a leader in this field, this competition will explore and advance clean hydrogen technologies while generating fresh, exciting new projects and ideas,” Environment and Protected Areas Minister Rebecca Schulz said in a Tuesday news conference.

The competitions, which will receive an additional $5 million from the federal government, will be the second iteration of Alberta’s push to develop its market for hydrogen production as the world races to limit its carbon footprint.

The first, held last year by Alberta Innovates and whose prize money was restricted to $20 million, resulted in 18 mid-stage technological development and engineering studies that helped generate $130 million for companies in the industry, said Laura Kilcrease, CEO of the research agency.

“So can you imagine if that’s what we could do with $20 million with our partners today, what we’re going to do with $50 million, and how that’s going to affect the future for us all?” Kilcrease said in a news conference.

Alberta is Canada’s largest producer of hydrogen

Hydrogen, deemed a cleaner alternative to fossil fuels, can be produced in several ways.

But the most commonly known techniques involve having it separated from water in a process called electrolysis or breaking down methane into hydrogen and carbon dioxide, the latter of which can be removed using carbon capture and storage technology.

Alberta, with its natural gas reserves and extensive pipeline infrastructure, is Canada’s largest producer of hydrogen, manufacturing approximately 2.5 million tonnes per year.

However, the production of hydrogen through fossil fuels has come under scrutiny by environmental groups, including the Sierra Club, which says it emits toxic gases, such as particulate matter, carbon monoxide, and volatile organic compounds.

The problems also extend to its storage, which is prone to explosions.

However, the demand for hydrogen, estimated to be about 92 million tonnes in 2022, could balloon to 500 million tonnes by 2050, stated a report by PwC.

“And we want a piece of that action worldwide,” said Kilcrease.

As a result, to mitigate the risks of producing hydrogen, the province is inviting its best minds to come up with solutions.

Those interested in the Emissions Reduction Alberta’s Accelerating Hydrogen Challenge can submit their application by 5 p.m. on Sept. 22. Those planning to apply for Alberta Innovates’ Hydrogen Centre of Excellence Competition 2 can do so by 5 p.m. Sept. 26.