Alberta Invests $3 Million in Hydrogen Project Using Forestry Waste

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The Government of Alberta is investing $3 million to support a new project that turns forestry waste into carbon-negative hydrogen, advancing the province’s clean energy leadership. 

The funding, announced on April 23, 2025, at the Canadian Hydrogen Convention in Edmonton, will help Hydrogen Naturally develop innovative technology that transforms forestry harvest residuals and wildfire-damaged wood into hydrogen fuel.

The project, backed by Emissions Reduction Alberta (ERA), will use gasification technology to convert biomass into hydrogen while capturing and sequestering the carbon emissions underground. The hydrogen produced will be blended with natural gas to create a carbon-neutral energy source. Funding comes from Alberta’s Technology Innovation and Emissions Reduction (TIER) program, which supports industrial innovation to reduce emissions.

“Hydrogen offers major potential for Alberta to leverage our vast natural resources, skilled workforce, and energy infrastructure,” said Dale Nally, Minister of Service Alberta and Red Tape Reduction. “This investment is diversifying Alberta’s economy, creating jobs, and positioning the province as a world leader.”

Hydrogen Naturally plans to co-locate hydrogen production with existing industrial facilities, helping to reduce carbon emissions directly at the source without the need for transporting hydrogen. Provincial support will fund a Front-End Engineering and Design study to move the project toward construction in Alberta’s Industrial Heartland.

ERA CEO Justin Riemer emphasized that strategic investment in hydrogen technologies is key to reducing emissions while driving economic growth: “Companies like Hydrogen Naturally are showcasing how innovation can deliver tangible results for Alberta’s economy and environment.”

Since its founding in 2009, ERA has committed nearly $1 billion to 306 clean technology projects, aiming to cut millions of tonnes of emissions and build competitive industries. The hydrogen initiative reflects Alberta’s broader strategy to lead the global transition to low-carbon energy.