The Canadian federal and provincial governments have announced approximately CD$475 million in project funding for Air Products’ Net Zero hydrogen energy complex in Alberta – effectively firming up an MoU signed in June last year.
Air Products will receive CD$300 million from the Strategic Innovation Fund (SIF), the Government of Canada’s programme designed to spur innovation by providing funding for large projects and national innovation ecosystems; over CD$160 million (CAD) from the Alberta Petrochemicals Incentive Program (APIP), part of Alberta’s Recovery Plan to bring multi-billion dollar investments to industrial projects throughout the province; and CD$15 million (previously announced) from Emissions Reduction Alberta’s Shovel-Ready Challenge, which aims to help deliver on environmental and economic goals by investing in clean technology.
The CD$1.6bn showcase facility will contain a ‘world scale’ auto-thermal reformer, carbon capture operations achieving 95% removal, a power generation facility fully fuelled by hydrogen, a 35 tonnes-per-day hydrogen liquefaction facility, a large air separation facility producing clean liquid oxygen and nitrogen, and connection to Air Products’ existing Alberta Heartland Hydrogen Pipeline network.
Seifi Ghasemi, Air Products’ Chairman, President and CEO, said, “This facility will be a first mover in helping to decarbonise mobility and industrial markets, further demonstrated by an already announced and substantial off-take supply contract.”
Amarjeet Sohi, Edmonton Mayor, said the announcement brings Edmonton one step closer on the energy transition journey towards becoming a carbon-neutral city. He said, “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.”
In September, Air Products announced a customer agreement for approximately 50% of the low-carbon hydrogen output from the 165 million standard cubic feet per day hydrogen production complex.
This off-take agreement also saw Air Products increase its facility investment from CD$1.3bn to CD$1.6bn, as well as including beneficial engineering enhancements to the production process, further substantially reducing greenhouse gases at the Net Zero facility.
The hydrogen liquefaction facility will play a critical role in the developing hydrogen economy across Western Canada. Hydrogen will help to meet demand for sustainable transportation, especially for heavy duty vehicles where hydrogen excels compared with other technologies.