The Alberta government is ramping up its research and development in the hydrogen sector with plans to create a Clean Hydrogen Centre of Excellence (CH2COE). The province will support the project with C$50mn ($39mn) of funding over the next four years: C$40mn to cover operating costs and C$10mn over the first two years to cover capital funding.

Hydrogen Economist spoke about the scope of the project with Dale Nally, Alberta’s associate minister of natural gas and electricity, who is responsible for the development of the province’s clean hydrogen industry.

What is the Alberta government hoping to accomplish by creating the clean hydrogen research centre?

Nally: The global hydrogen economy is expected to be worth $2.5-11tn by 2050, and Alberta is uniquely suited to be a key player in this growing industry. CH2COE will help drive innovation and support the development of a clean hydrogen economy in the province. It will act as a key bridge between researchers, industry, small businesses and various levels of governments to help drive collaboration for a thriving clean hydrogen future here in Alberta. This will complement the over C$60mn in hydrogen technology development already invested, and the billions standing ready to fund eligible capital expenditure for hydrogen production facilities in our province. 

“The centre will focus on developing made-in-Alberta solutions through whichever clean production method is the best fit”

There is exciting and significant work occurring on hydrogen in our province, and the CH2COE—along with our low corporate tax levels, skilled workforce and the Alberta Petrochemicals Incentive Program – will help establish Alberta as a leader in the global clean hydrogen economy. We look forward to sharing more details about how the province plans to leverage this investment with other levels of government and private industry when the centre is officially launched in the coming months.

Will the research agenda of the centre focus on the full clean hydrogen supply chain from production to transport to end-use applications? 

Nally: Yes, the centre of excellence will focus on all aspects of the hydrogen sector, including production and end-use products. As part of its work, the centre will be focused on advancing projects that are relatively early in the development cycle, helping technologies move from proof of concept towards demonstration-ready prototypes that can then be quickly utilised by companies in the hydrogen space. 

In that case, will CH2COE conduct research to improve the economics of the production blue, green and other colour varieties of hydrogen in the province? 

Nally: Yes, just like Alberta's Hydrogen Roadmap, the CH2COE will be open to all methods of clean hydrogen production and will follow the lead of innovators and investors. It will investigate all hydrogen production technologies that could be advanced in Alberta, including those using natural gas, renewable power, or other fuel sources like biomass. The centre will focus on developing made-in-Alberta solutions through whichever clean production method is the best fit.

Will the centre also focus on identifying and developing export markets for Alberta’s clean hydrogen? 

Nally: Identifying and developing export markets for Alberta’s hydrogen will not fall under the centre, as it is managed by Alberta Energy, [crown corporation] Invest Alberta and the Ministry of Jobs, Economy, and Innovation. The centre will focus on technology that could support exports, rather than identifying potential export markets.

As outlined in our Hydrogen Roadmap, exports offer the largest opportunity to Alberta's economy, and several of the world-scale hydrogen projects announced last year have plans to export Albertan hydrogen to Asian markets. Alberta's government and our partners at Invest Alberta will continue our work to ensure the province can capitalise on the export opportunity as quickly as possible.

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Author: Vincent Lauerman