EDMONTON: It’s a chicken and egg problem.
But Alberta will undoubtedly need a stable and reliable regulatory framework — which has been lacking — before it can make major inroads on becoming a global player in the emerging hydrogen market.
And that means working with international partners, including ‘frenemies’ like the US, Energy and Minerals Minister Brian Jean told the Canadian Hydrogen Convention in Edmonton on Wednesday.
In a keynote address, Jean said that’s the difference between playing politics and developing policy frameworks that support buyers and sellers on both sides.
“I don't know if you've heard about it, but we have this huge market just south of the border over there, and they have an insatiable demand for energy,” he said.
“We can be part of that together. You know politics today, folks, we're going to solve it. And I think right now, I'm very thankful for our premier's leadership on that file and common sense people coming to the table and recognizing that fair trade, free trade, is the best thing for the people that we all represent.”
Despite President Donald Trump’s day-to-day gyrations on economic policy, Alberta is still technically under a nominal 10% tariff on cross-border energy trade.
Even as Premier Danielle Smith is in Asia to drum up support for increased energy exports of all kinds, she’s increasingly being checked by American delegates in countries like Korea — even Ukraine — using the threat of tariffs to force investment in LNG projects in Alaska, for instance.
In an exclusive interview with The Western Standard, Smith acknowledged that the US is both Canada’s largest customer and is fast becoming a major competitor in Asian markets — she coined the term ‘cust-om-pretitor’ to describe the present arrangement.
While noting that the US will remain Alberta’s largest export market for the foreseeable future, Jean also highlighted the role of countries like Japan and the EU in Alberta’s emerging hydrogen strategy.
This year’s edition of the hydrogen confab is notable for the presence of heavy hitters like Kawasaki and Mitsubishi in the delegate rolls.
Unlike the US, Japan’s government partners with private industry to ensure decades-long growth horizons. To do that, it needs a high level of certainty on the part of its trading partners to make investments needed to bring those plans to fruition.
Jean admitted to attending high-level meetings specifically with Kawasaki to do just that. He also agreed it means cooperation with Ottawa regardless of who is elected federally next week.
“Countries like Japan and South Korea are looking to import millions of tons of hydrogen as ammonia annually by 2030 as they work to move to lower-emissions energy sources,” he said.
“We've already missed an auction or two. We don't want to miss anymore. When the world calls for our energy, we want to answer that call, and we will.”
Added Service Alberta and Red Tape Reduction Minister Dale Nally said, “No one innovates and creates faster and better than Alberta. But the race is on. As we speak, industries and businesses around the world are working to develop and implement the technologies of tomorrow while keeping energy affordable and remaining economically competitive in today's global market.”