New funding advances landmark hydrogen project in the Edmonton region
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The Greater Edmonton Region will soon become a world leader in hydrogen production.
A total of $476 million in funding from the federal and provincial governments has been awarded to Air Products, an American multinational gas and chemical corporation, to support building the world’s largest net-zero blue hydrogen facility in the Edmonton region.
Ottawa is providing $300 million supplemented by $161 million from the Alberta Petrochemicals Incentive Program and $15 million from the province’s Technology, Innovation and Emissions Reduction program — funded by a carbon tax on industrial emitters for the project. The facility will be situated in Aurum Energy Park, located north of Yellowhead Trail neighbouring Sherwood Park.
“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. With such a huge attachment to 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,” said Alberta Premier Danielle Smith.
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The project, announced in June 2021, represents a $1.6 billion investment and will create an estimated 4,760 direct, indirect, and induced jobs for the Edmonton region over the next couple of years according to a 2022 study commissioned by Edmonton Global. Once operational, the project will contribute an estimated $809 million to the region’s GDP.
The project relies on an innovative combination of well-established technologies to produce net-zero hydrogen used as an energy source for a number of applications difficult to de-carbonize including heavy-duty transportation, steel production, glass production, home and industrial heating, and others.
Air Products chose the Edmonton region for this project because of its access to abundant and low-cost natural resources, extensive infrastructure, highly skilled workforce, and innovative spirit to be a model for other jurisdictions around the globe. As Canada’s first established hydrogen hub, the Edmonton region is set to become the driving force for the country’s hydrogen economy and will support Canada in meeting its net-zero commitments.
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“This announcement brings us one step closer to becoming a more climate-resilient city. The facility will produce clean hydrogen for key Canadian Industrial sectors, such as the growing transportation market. This investment will help Edmonton’s post-pandemic recovery efforts and will allow Canada to advance clean energy by securing an early foothold in the global hydrogen market. Edmonton is leading the way in climate resilience and achieving net zero, and this announcement is an important step forward,” said Amarjeet Sohi, Mayor of Edmonton.
Estimated to be fully operational in 2024, the hydrogen facility is envisioned to reach over 1,500 tonnes of hydrogen production per day and achieve greater than three million tonnes per year of CO2 capture. Hydrogen has been proven to have a substantial technological advantage over battery electric vehicles in heavy-duty transportation applications due to those vehicles’ duty cycles, especially in Canada’s extreme climate conditions.
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Blue hydrogen is a cheaper form of the element made from natural gas using carbon capture and storage. The Air Products facility will aim to capture 95 per cent of its own carbon emissions. However, to become fully net zero, it will offset the five per cent of carbon emitted and use hydrogen to produce “clean power” for the facility and make extra power for the grid to compensate for the carbon put into the air.
“The hydrogen economy is a reality in our region. We already produce close to 60 per cent of all the hydrogen in Canada and this project is about to increase that dramatically. By securing this funding, Air Products will be able to break ground on this world-scale project. This investment is a clear signal to the investment community that there is broad support from all levels of government for the hydrogen economy. Our region is at the centre of Canada’s hydrogen economy and we’re aggressively driving for more,” said Malcolm Bruce, CEO, Edmonton Global.
GM Collaborates With Nel ASA On Cost-Effective Hydrogen Production
— NOV 16, 2022
GM may be focusing heavily on the development of new battery-electric vehicles and related Ultium technologies, but it’s also looking into new opportunities around hydrogen fuel cells. Now, The General has announced that it will collaborate with Nel Hydrogen US, a subsidiary of Nel ASA, to pursue cost-effective hydrogen fuel production via a new joint development agreement.
Founded in 1927 and based in Oslo, Norway, Nel ASA is focused on the production, storage, and distribution of hydrogen from renewable energy sources. Nel was the first company in the world with a fully automated alkaline electrolyzer production line, creating an opportunity to industrialize the production of its PEM electrolyzer equipment. Meanwhile, GM has made great strides in fuel cell technology development, thus offering substantial synergies with Nel’s PEM platform.
“Adding Nel as a strategic collaborator is an important step to help us commercialize fuel cell technology,” said GM executive director, Global HydroTec, Charles Freese. “Electrolysis is key to creating consistent, clean sources of hydrogen to power fuel cells.”
The Nel PEM electrolyzer works on the same principle as a hydrogen fuel cell, but in reverse. While GM’s HydroTec fuel cells combine hydrogen and oxygen to create electricity and water, the PEM electrolyzer uses electricity and water to produce hydrogen and oxygen.
“Nel has some of the most promising electrolyzer technology to help develop clean hydrogen infrastructure, and we believe our HydroTec fuel cell IP can help them get closer to scale,” Freese added.
In exchange for its hydrogen fuel cell IP and development work, Nel will compensate GM on an ongoing basis and pay a license following successful commercialization of the end product. The license will be dependent on how much of the end product is based on GM technology.
“An automated production concept is key when scaling up and driving down cost on electrolyzer technology,” said Nel CEO, Håkon Volldal. “By utilizing the combined expertise of both companies, it will help to more quickly develop a green hydrogen technology that is competitive with fossil fuels.”
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