Air Products to invest $1.3B in hydrogen energy complex in Canada

The hydrogen liquefaction facility will play a critical role in the developing hydrogen economy across Western Canada, supporting sustainable transportation, especially for heavy-duty.

Air Products and its subsidiary Air Products Canada Ltd., in cooperation with the Government of Canada and the Province of Alberta, today (9th June) announced a multi-billion dollar investment plan to build a new net-zero hydrogen energy complex in Edmonton, Alberta, Canada.

The CA$ 1.3 billion (US$ 1.08 billion) Edmonton net-zero hydrogen production and liquefaction facility is expected to come online in 2024, though subject to the final completion of the agreements and permit approvals.

The facility will capture over 95% CO2 from the natural gas and permanently sequestered by leveraging the Wolf Carbon Solutions wholly-owned and operated Alberta Carbon Trunk Line. The facility will also use 100% hydrogen, including NovaLT16 turbines provided by Baker Hughes, to produce clean electricity for the entire facility and export to the grid, offsetting the 5% remaining CO2 to achieve the net-zero hydrogen facility design.

The complex will help refining and petrochemical customers connected to the Air Products Heartland Hydrogen Pipeline reduce their carbon intensity and enable the production of liquid hydrogen to be an emissions-free fuel in the transportation sector and generate clean electricity.

It will use an auto-thermal reformer (ATR) hydrogen production facility, using Haldor Topsoe technology. In addition, an air separation facility will support the ATR operation and produce clean liquid oxygen and nitrogen for the merchant industrial gas market. The facility will also include a 30 tonnes/day hydrogen liquefaction facility designed by Air Products.

The company hydrogen business in Alberta is anticipated to reach over 1,500 tonnes/day of hydrogen production and capture over 3 million tonnes/year of CO2. Air Products Canada currently operates three hydrogen production facilities in Alberta and a 55-kilometre hydrogen pipeline in the Alberta Industrial Heartland. It also operates a hydrogen production facility, a 30-kilometre pipeline network and a liquefaction facility in Sarnia, Ontario.

Air Products is also considering further investments in both existing and new hydrogen facilities in Alberta and across Canada. The Edmonton project site was strategically selected to permit expansion of the energy complex, including replication of net-zero hydrogen production assets to meet growing demand. Air Products’ existing Heartland Hydrogen Pipeline network was designed for growth and can more than triple current volumes.

Seifi Ghasemi, Air Products’ Chairman, said, “We are paving the way for hydrogen from Edmonton to meet industrial and transportation needs throughout western Canada.”

Dr Samir J. Serhan, Air Products’ COO, said, “Our existing 55-kilometre Alberta Heartland Hydrogen pipeline, our project execution expertise, and our record of reliable operations will set the benchmark for competitive hydrogen to support growth in Alberta for many years to come.”

Rachel Smith, Air Products Canada VP, said, “By design, the new complex will utilize Alberta’s natural gas resources to produce net-zero hydrogen, reducing the environmental footprint of the refining sector and facilitating future growth in the hydrogen economy in Edmonton and the Alberta Industrial Heartland.”

Hon. Jason Kenney, Premier of Alberta, said, “Alberta’s combination of competitive taxes, abundant natural resources, and innovation are attracting new investment by world-leading companies, like Air Products, to expand their operations right here in our province.”

Hon. François-Philippe Champagne, Canadian Minister of Innovation, Science and Industry, said, “We will continue to support Canadians and businesses who are ambitious about seizing these opportunities, creating good jobs, and helping Canada achieve net-zero by 2050.”

Hon. Seamus O’Regan Jr., Minister of Natural Resources, said, “Hydrogen’s moment has come. It’s the low-carbon fuel that gets us to net zero. This opportunity will create thousands of jobs and use the skills and expertise of workers in Alberta to lead Canada to the forefront of the global hydrogen market.”

Don Iveson, Mayor of Edmonton, said, “Along with our neighbours in the Edmonton Region Hydrogen Hub, we’ve leaned into Northern Alberta’s competitive advantages to drive growth in the hydrogen economy.”

David Knight Legg, CEO of Invest Alberta Corporation, said, “The future of net-zero is in the hands of engineers, entrepreneurs, investors, and companies like Air Products.”

Ethan Mandel

Ethan is the special correspondent for Europe covering the hydrogen industry for H2 Bulletin. Please click on the email icon to contact me via email or follow me on social media. I am reachable on Phone: +44 (0) 208 123 7812
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