Air Products to receive funding for hydrogen complex in Canada

At the event held at the Northern Alberta Institute of Technology, Air Products' Chairman, President and Chief Executive Officer Seifi Ghasemi, Minister of Innovation, Science and Industry Canada the Honourable François-Philippe Champagne, Alberta Minister of Energy the Honourable Peter Guthrie, and several other esteemed federal, provincial and City of Edmonton officials gathered to make the joint announcement.

Under separate agreements, Air Products will receive:

• CAN$300 million from the Strategic Innovation Fund (SIF), the Government of Canada's programme designed to spur innovation for a better Canada by providing funding for large projects and national innovation ecosystems. Air Products' project funding specifically comes from the Net-Zero Accelerator Program targeting industrial decarbonization in support of Canada's 2030 greenhouse gas emissions reduction targets and its 2050 net zero emissions goal, among other objectives.
• Over CAN$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.
• CAN$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, attract investment and create jobs in Alberta.

Today's announcement marks the milestone of the successful completion of Memorandum of Understanding (MoU) agreements referenced in June 2021 when Air Products, the world leader in hydrogen production, and its subsidiary Air Products Canada Ltd., in conjunction with the Government of Canada and the Province of Alberta, initially announced the multi-billion-dollar plan to build the landmark net zero hydrogen energy complex.

Canada's clean energy diversification strategy and regulatory framework make clear that hydrogen is a key enabler for carbon neutrality by 2050. Aligned with that vision, Air Products began development in 2018 on the core of this world-scale energy complex in Edmonton, which will begin with a transformative net zero hydrogen production and liquefaction facility.

Since the initial facility announcement, Air Products has proceeded with engineering, procurement, and construction preparatory site work, as well as marketing the clean hydrogen to be produced. In September 2022, the company announced a customer agreement for approximately 50% of the low-carbon hydrogen output from the 165 million ft³/d hydrogen production complex. This offtake agreement also saw Air Products increase its facility investment from CAN$1.3 billion to CAN$1.6 billion, as well as including beneficial engineering enhancements to the production process, further substantially reducing greenhouse gases at the net zero facility.

The Alberta project relies on an innovative combination of well-established technologies to jumpstart an ambitious transition to carbon neutrality and is consistent with Air Products' growth strategy of executing global megaprojects that enable a transition to a cleaner, more sustainable energy future. It will take advantage of Canada's abundant and low-cost natural resources, extensive infrastructure, highly-skilled workforce, and innovative spirit to be a model for other jurisdictions around the globe.

The hydrogen liquefaction facility will play a critical role in the developing hydrogen economy across Western Canada. Hydrogen will help to meet society's need for sustainable transportation, especially for heavy-duty vehicles where hydrogen excels compared to other technologies. Hydrogen is seen as having a substantial technological advantage over battery electric vehicles in heavy-duty applications due to those vehicles' duty cycles, especially in Canada's extreme climate conditions.

Read the article online at: https://www.globalhydrogenreview.com/hydrogen/09112022/air-products-to-receive-funding-for-hydrogen-complex-in-canada/