The industrial gas giant in 2021 announced plans for the $1.3bn project which it said would boast hydrogen production and liquefaction capacities, which it expects to be onstream in 2024.
Set to act as the centre of Western Canada’s hydrogen economy the complex is hoped to make the clean fuel a key enabler of the country’s carbon neutrality goals.
Under three separate agreements, Air Products will receive:
CAD$300m ($223m) from the federal government’s Strategic Innovation Fund (SIF) programme designed to spur innovation for a better Canada by providing funding for large projects and national innovation ecosystems.
Over CAD$160m ($119m) from the Alberta Petrochemicals Incentive Programme (APIP), part of the provinces recovery plan to bring investments to industrial projects throughout Alberta.
CAD$15m, from Emissions Reduction Alberta’s Shovel-Ready Challenge, which was previously announced, aiming to help deliver on the province’s environmental and economic goals by investing in clean technologies.
Commenting on the funding, Seifi Ghasemi, Chairman, President, and CEO of Air Products, said, “From the beginning, Air Products has truly and sincerely appreciated the partnership of the Government of Canada and the Government of Alberta, as well as the continued support of the City of Edmonton, in welcoming this visionary clean energy complex to Alberta.
“We are pleased to recognise the successful completion of support agreements that have allowed us to make additional engineering enhancements to reach an even cleaner world-class design. 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.”
At the Hydrogen Americas Summit in Washington DC, US in October (2022), Ghasemi told the delegation that the hydrogen industry must build supplies of hydrogen before seeing its deployment in end-uses.
François-Philippe Champagne, Canadian Minister of Innovation, Science, and Industry, commented, “We need to be bold and seize the moment, and that’s exactly why we’re investing in Air Products. Hydrogen is one of the key elements for our path to Net Zero, and that’s why we’re making these important investments in Canada’s energy sector.”
The funding announcement follows shortly on the Canadian Ministry of Finance revealing it was launching a consultation on how best to implement tax credits to support investments in clean hydrogen production.
Danielle Smith, Premier of Alberta, added, “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 in the hydrogen market, our government’s Alberta Petrochemicals Incentive Programme is making us the most attractive jurisdiction for companies looking to invest in hydrogen.”