Alberta’s government is spending $3 million from its TIER (Technology Innovation and Emissions Reduction) fund to support a new hydrogen project that hopes to create jobs, attract investment, and cut emissions by transforming forestry waste into clean fuel.
Themoney will go to Calgary-based Hydrogen Naturally through Emissions Reduction Alberta. The company is developing technology to convert woodchips, sawdust, and other organic forestry waste into hydrogen.
Unlike traditional methods, this process will capture and store carbon emissions underground instead of releasing them into the atmosphere.
“Hydrogen offers major potential for Alberta to leverage our vast natural resources, skilled workforce and existing energy infrastructure,” said Dale Nally, Minister of Service Alberta and Red Tape Reduction. “We’re just getting started.”
Rebecca Schulz, Minister of Environment and Protected Areas, added that the province is committed to innovation that powers economic growth while protecting the environment.
“That’s why we are investing in technology and innovation to help create jobs, fuel our economy and keep attracting investments into our province,” she said.
Hydrogen Naturally will use the funding to conduct a feasibility study that lays the groundwork for building its first hydrogen production unit in Alberta, including regulatory, engineering and environmental planning.
“This funding accelerates the scale-up of breakthrough technologies, paving the way for a low-carbon future in Alberta,” said Justin Riemer, CEO of Emissions Reduction Alberta.
Brett Jackson, president of Hydrogen Naturally, emphasized Alberta’s unique position to lead in low-emission energy. “Together, Hydrogen Naturally and Alberta can leverage our extensive carbon capture and sequestration capabilities to become global leaders in low-emission energy and sustainable forest management,” he said.
Alberta’s energy sector is already Canada's largest hydrogen producer, and the province is positioning itself as a global hub for hydrogen innovation. The worldwide hydrogen market is expected to be worth more than $2.5 trillion annually by 2050.
Since the inception of the TIER program, Alberta has spent $43 million on 13 hydrogen-related technologies, collectively valued at over $250 million. The province’s combination of existing pipeline infrastructure, expertise in energy exports, and cold climate make hydrogen particularly promising for industrial and transportation use.
Hydrogen Naturally, founded in 2022 and headquartered in Calgary, plans to expand its hydrogen production across both Canada and the United States.