Opinion: Global race for hydrogen is on. Here’s how Alberta can win

Breadcrumb Trail Links Columnists Malcolm Bruce is CEO of Edmonton Global. Handout photo, courtesy of the Business Council of Alberta Photo of Submitted photo/content of Postmedia article

Next week, eyes across Canada will be on Alberta as the epicenter of one of the most critical discussions about our country’s energy future at the 2023 Edmonton Hydrogen Summit, hosted by the Edmonton Region Hydrogen Hub. And there’s no better time than now for Alberta to seize the almost unprecedented opportunity we have to lead the way in hydrogen development – if we act fast.

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While most of our economy could transition to electricity, electrifying about 30 percent of Canada’s energy use will be difficult. Hydrogen would be ideal for refining oil; Manufacture of petrochemicals and fertilizers; as a fuel for long-distance trucks, heavy machinery and buses; and in the high-temperature manufacture of glass, concrete and steel.

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Globally, this equates to a $11-12 trillion market by 2050. The stakes are high. But such is the opportunity.

Many countries recognize the transformative potential of hydrogen and integrate it into their economic and energy strategies. Japan, South Korea, China, Germany and California are already turning to Canada as a potential source of hydrogen.

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Alberta is at the forefront of Canada’s hydrogen sector, producing two-thirds of Canada’s hydrogen and growing rapidly. Businesses choose Alberta as a location for hydrogen production because of the province’s competitive advantages, including an abundant supply of low-cost natural gas, existing carbon capture and storage infrastructure, and a skilled workforce.

Air Products, for example, is investing $1.6 billion to build the world’s largest net-zero hydrogen power complex, an innovative facility that is scheduled to come online next year. Another example is ATCO, an early leader in hydrogen production in Alberta, which started its hydrogen blending project in Fort Saskatchewan in 2020.

Alberta’s capabilities go well beyond the production of hydrogen itself. We are at the center of Western Canada’s energy supply chain, with many companies willing to play a significant role not only in the production of hydrogen, but also in its transportation and use.

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Edmonton International Airport, for example, is exploring the use of hydrogen throughout airport operations, from ground service fleets to airplanes. And Canadian Pacific Railway launched and expanded its hydrogen locomotive program, which will include the world’s first hydrogen locomotive technologies.

Alberta is also beginning to attract advanced manufacturing companies; technology and AI startups; and the finance, venture capital and fintech sectors, all of which want to be part of this emerging hydrogen economy.

The province not only creates an environment where ideas and technologies like hydrogen can be tested, replicated and scaled up at scale, but at the same time creates significant economic impact and jobs for Albertans.

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To really capitalize on this opportunity, we need to invest in our infrastructure, including hydrogen pipelines and carbon sequestration.

Alberta is one of the world’s lowest cost producers of clean hydrogen, perhaps second only to Russia – and there are clear reasons why we could be a preferred supplier. Ultimately, getting this product to domestic consumers — and international markets — requires scalable transportation systems like pipelines, and Alberta’s pipeline infrastructure and expertise in pipeline technologies is unmatched. However, unlocking this resource by transporting hydrogen to international markets requires political will.

We must also enable cooperation between all levels of government. Both the federal and Alberta governments view hydrogen as a necessary component to meeting our climate goals while being part of a multi-trillion-dollar global economic development opportunity – but there is more that can and should be done.

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Construction projects of this magnitude take a long time in Canada, a major disadvantage when competing with international jurisdictions, which in some cases can move very quickly.

We must act at a pace that demonstrates our commitment to addressing the climate emergency and signals that we can be part of the solution. Right now, investors and countries lack confidence that Canada can deliver on our hydrogen promise and build the infrastructure needed to bring our hydrogen to international markets.

In addition, incentives recently introduced by the United States are undermining our competitive advantage. We need to develop a new approach to building our hydrogen economy. By committing to this, we ensure our energy industry thrives for generations to come.

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The global race to introduce hydrogen technologies is on. Countries around the world are positioning themselves right now to become the hydrogen superpowers of tomorrow.

We must act aggressively to seize this opportunity for Canada and are working with our partners to establish Alberta and Canada as the world leaders in clean hydrogen. We must accelerate our pace, work together to build infrastructure, ensure our regulatory environment is trailblazer, and be bold in putting Alberta and Canada at the forefront of this global energy transition.

The time to act is now.

Malcolm Bruce is CEO of Edmonton Global and a Contributor to the Business Council of Alberta. This column is part of a series of Business Council discussion papers entitled Missions and Moonshots, which explores how Alberta can realize its full potential in three key areas of the economy: food, health and energy.

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