Government of Alberta invests $3 million into a new hydrogen project that will help industry create jobs, attract investment, and reduce emissions
EDMONTON, AB – Alberta leads the market in developing new ways to produce low-carbon fuels and energy. By creating world-scale CCS capacity for detecting and capturing methane, Alberta continues to advance global technologies to decarbonize hard-to-abate industrial sectors. Hydrogen is the next stage in this effort, and Alberta has an opportunity to be a global leader in low-carbon and carbon-negative hydrogen.
This $3 million investment from Emissions Reduction Alberta will help Hydrogen Naturally develop a project that converts forestry harvest residuals and fire-kill fibre – wood damaged by wildfire – into hydrogen. It will then capture and sequester the carbon typically released into the air during this process underground, transporting it to saline aquifers or depleted gas reservoirs. Carbon-negative hydrogen will then be blended with natural gas to produce carbon-neutral energy.
Hydrogen Naturally’s primary objective is to co-locate with existing industrial facilities to achieve direct carbon reductions without needing to transport the hydrogen or purchase offsets. Funding is sourced from the province’s Technology Innovation and Emissions Reduction (TIER) Regulation, The announcement was made by Dale Nally, Minister of Service Alberta and Red Tape Reduction, on April 23, 2025, at the Canadian Hydrogen Convention in Edmonton.
“We have the energy and the innovation to help power the world in the most environmentally responsible way. That’s why we are investing in technology and innovation to help create jobs, fuel our economy and keep attracting investments into our province.”
Rebecca Schulz, Minister of Environment and Protected Areas
“Hydrogen offers major potential for Alberta to leverage our vast natural resources, skilled workforce and existing energy infrastructure. Alberta is the largest hydrogen producer in Canada, and we’re just getting started. Investing in this promising, emissions-free, economically friendly fuel source is diversifying Alberta’s economy, creating jobs and positioning Alberta as a world leader.”
Dale Nally, Minister of Service Alberta and Red Tape Reduction
Hydrogen Naturally will use provincial funding for a Front-End Engineering and Design study that will provide the regulatory, engineering, and environmental information needed to build its first hydrogen production unit in the Industrial Heartland.
“The Government of Alberta’s ongoing investment in hydrogen is essential for our province to become a major player in the global hydrogen economy. Companies like Hydrogen Naturally are showcasing how innovation and strategic investment can deliver tangible emissions reductions while fueling economic growth.”
Justin Riemer, CEO, Emissions Reduction Alberta
“The Government of Alberta, through Emissions Reduction Alberta, will play a pivotal role in advancing our negative-emission hydrogen facility, which uses innovative gasification technology to utilize forest harvest residuals. Together, H2N and Alberta can leverage our extensive carbon capture and sequestration capabilities to become global leaders in low emission energy and sustainable forest management.”
Brett Jackson, President, Hydrogen Naturally
This project is being supported through ERA’s Continuous Intake Program (CIP). The CIP is a funding mechanism designed to identify and advance high-impact opportunities outside of scheduled calls for proposals. All ERA funding recipients must produce a final outcomes report that is shared publicly to help advance technologies toward commercialization. The report must also include project outcomes, achievements, and lessons learned, including emissions reductions, job creation, and other environmental, economic, and social benefits.
To date, ERA has invested over $83 million in 16 hydrogen technologies worth a collective value of over $1.9 billion. These projects include various approaches to production; installing refueling infrastructure; testing a variety hydrogen-powered vehicles, equipment, and appliances; advancing retrofit kits for diesel engines; providing heat and power to a municipal recreation centre; and more.
For more information, contact:
Kevin Duncan
Media Relations
Emissions Reduction Alberta
403-431-2859
kduncan@eralberta.ca
ABOUT EMISSIONS REDUCTION ALBERTA (ERA):
For 16 years, ERA has invested revenues from the carbon price paid by large emitters to accelerate the development and adoption of innovative clean technology solutions. Since its establishment in 2009, ERA has committed $970 million toward 306 projects valued at over $7.3 billion, which are helping to reduce emissions, create competitive industries, and lead to new business opportunities in Alberta. These projects are estimated to deliver cumulative reductions of 34 million tonnes of CO₂e by 2030 and 95 million tonnes of CO₂e by 2050.
ABOUT TECHNOLOGY INNOVATION AND EMISSIONS REDUCTION (TIER) FUNDING
The Technology Innovation and Emissions Reduction (TIER) Regulation is at the core of emissions management in Alberta. The TIER system implements Alberta’s industrial carbon pricing and emissions trading system. TIER helps industrial facilities find innovative ways to reduce emissions and invest in clean technology to stay competitive and save money.