Canada pledges $475m for Air Products’ net zero hydrogen complex

The hydrogen production and liquefaction facility will deploy advanced hydrogen technology and innovative design, including carbon capture technology

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The Canadian Government has pledged CAD$475 million (£304m) in funding for Air Products’ multi-billion dollar net zero hydrogen energy complex in Alberta.

The CAD$1.6 billion (£1.03bn) hydrogen production and liquefaction facility – which saw an investment increase from the initial CAD$1.3 billion (£0.8bn) planned – will deploy advanced hydrogen technology and innovative design, including carbon capture technology.

The company made the announcement to build the facility, to be located in Edmonton, in June 2021.

Since then, Air Products has proceeded with the 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 around 50% of the low carbon hydrogen output from the 165 million standard cubic feet per day hydrogen production complex.

Air Products planned to boost the investment in the facility following the agreement, as well as to include engineering enhancements to the production process.

François-Philippe Champagne, Minister of Innovation, Science and Industry said: “We need to be bold and seize the moment and that’s exactly why we’re investing in Air Products. We are prioritising a strong and sustainable economy, helping create well-paying jobs and ensuring a cleaner future.

“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. We’re also ready to build on this ambition by supporting and working with high-emitting sectors in decarbonising, creating more jobs across the country and growing for generations to come.”