Alberta to Invest C$45MM in Hydrogen Innovation

From Left to Right: Kyle Mulligan, Assistant Vice President - Operations Technology, CPKC; Rebecca Schulz, Minister of Environment and Protected Areas; Justin Riemer, CEO of Emissions Reduction Alberta; and Laura Kilcrease, CEO, Alberta Innovates announce new hydrogen funding.

The Alberta government on Aug. 1 announced that it will provide C$45 million to power new hydrogen technologies to help reduce emissions and create jobs.

According to officials, hydrogen is expected to be a $2.5 trillion to $11 trillion industry worldwide by 2050, and Alberta is “ready to emerge as a leader in the global market,” producing “some of the lowest-cost clean hydrogen in the world.”

Alberta officials say the province has created a Hydrogen Roadmap, an Emissions Reduction and Energy Development Plan, and a Natural Gas Strategy to “recognize the importance of growing the provincial hydrogen economy while cutting emissions and accessing global markets.”

As part of this work and through Alberta Innovates’ Hydrogen Center of Excellence and Emissions Reduction Alberta, Alberta’s government says it will launch two hydrogen funding competitions using the Technology Innovation and Emissions Reduction (TIER) fund.

The new funding, which was announced at Canadian Pacific Kansas City’s (CPKC) Calgary headquarters, will “drive cutting-edge and first-of-their-kind hydrogen technologies to be used in production, transmission and distribution, storage, and in industries like heavy-duty transportation, industrial heat and chemicals,” according to officials, who add that the funding will “explore innovative technologies rather than what is currently commercially available.” The team from Emissions Reduction Alberta (ERA) and Alberta Innovates joined CPKC Assistant Vice President – Operations Technology Kyle Mulligan and Minister of Environment and Protected Areas Rebecca Schulz for the announcement.

The two parallel competitions are open to a wide range of applicants, including technology developers, industry and industry associations, small and medium-sized enterprises, research and development organizations, post-secondary institutions, municipalities, not-for-profit organizations, Indigenous organizations and municipalities.

Applications for both funding streams are now open. Applications close at 5 p.m. MDT on Sept. 22 for the Emissions Reduction Alberta competition and at 5 p.m. MDT on Sept. 26 for the Alberta Innovates competition. Successful applicants will be invited to submit full proposals.

To simplify the process, applicants can submit a single proposal to apply for two funding streams:

• $20 million is available through Alberta Innovates’ Hydrogen Centre of Excellence for early- stage innovations. Natural Resources Canada is also providing another $5 million to Alberta Innovates through its Energy Innovation Program.
• $25 million is available through Emissions Reduction Alberta for later-stage technologies.

“Alberta is known for its entrepreneurial spirit and, as we are already a leader in this field, this competition will explore and advance clean hydrogen technologies while generating fresh, exciting new projects and ideas,” said Schulz.

CPKC says the funding will be allocated for such technologies as the Class I railroad’s Hydrogen Locomotive Program, which began in December 2020 with the retrofit of an existing diesel-electric linehaul locomotive. Last month, CPKC announced that it had ordered an additional 18 200-killowatt fuel cell engines from Ballard Power Systems to support the expansion of its program.

“With the support of Emissions Reduction Alberta (ERA), we have expanded our program, already converting two line-haul diesel locomotives to zero emission hydrogen locomotives and building two hydrogen production and fueling facilities,” CPKC said in a LinkedIn post. “Last month, ERA announced another grant of $7 million to support the further conversion of diesel electric locomotives to hydrogen fuel cells.”

In related developments, CPKC and CSX in June reported a planned joint venture for the building and development of hydrogen locomotive conversion kits for diesel-electric locomotives. Also, CPKC in May announced entering a long-term agreement with Teck Coal Limited for transportation of steelmaking coal from Teck’s four operations in southeastern, B.C. The railroad and Teck “intend to collaboratively develop a unique pilot program that integrates the use of CPKC’s hydrogen locomotives into Teck’s steelmaking coal supply chain,” according to CPKC. Testing is expected to begin in early 2024. 

Railway Age Editor-in-Chief William Vantuono will host on Sept. 21 the Next-Gen Motive Power (NGMP) virtual seminar, pulling together experts for an in-depth look at current initiatives, and candid discussion on the feasibility and practicality of moving away from the industry’s standard-bearer since the mid-20th century: the diesel-electric locomotive. Transitioning from steam to diesel took more than 25 years. Moving to zero emissions will probably take much longer. More information on this important event will be available soon on the Railway Age website under ‘Conferences.’ CPKC Assistant Vice President Kyle Mulligan, who heads the railroad’s Hydrogen Locomotive Program, is a featured presenter.

Further Reading:

• Ballard Lands Order for CPKC Hydrogen Locomotive Program
• CPKC, CSX Partner to Develop Additional Hydrogen Locomotives
• Hydrogen: Hope or Hype?
• CP’s Hydrogen Locomotive Program Advances
• CP’s Hydrogen Locomotive Powers Up
• Ballard to Power CP’s Expanded Hydrogen Locomotive Program
• First Look: CP’s Hydrogen Zero Emissions Locomotive