Alberta as an energy superpower must include hydrogen

The recent Canada–Alberta Memorandum of Understanding has, to a degree, reset the relationship between Ottawa and Edmonton — replacing years of federal-provincial quarrelling with a chance to build a shared vision for the province’s energy future.

By agreeing to work together on resource development and emissions management, both governments have shown that major energy projects can move far faster when political priorities align.

That same co-operation must now extend to hydrogen, not just bitumen. With global demand for low-carbon fuels rising, Alberta can use this renewed federal-provincial partnership to make hydrogen a central pillar of its industrial strategy — turning its natural gas, carbon capture and storage (CCS), and engineering strengths into long-term competitive advantage for clean fuel development.

Canada’s federal Hydrogen Strategy and its latest progress report both identify Alberta as a cornerstone of national deployment — from blue hydrogen produced via steam methane reforming with CCS and emerging methane pyrolysis in the Industrial Heartland to fuel cell and equipment supply chains.

Alberta’s geology, gas infrastructure, and engineering expertise make it one of the few jurisdictions able to produce large volumes of low-carbon hydrogen at competitive cost, with applications across refining, ammonia, steel, power balancing, and heavy transport.

Globally, demand for hydrogen and its derivatives is maturing. Europe’s hydrogen bank auctions and emerging Asian import plans are explicitly seeking reliable, large-scale suppliers of low-carbon hydrogen and ammonia. The Canadian Hydrogen Association is working with Alberta developers and investors to capture these opportunities.

If Alberta limits its ambition to bitumen, it risks missing a chance to diversify exports, hedge against long-term oil demand uncertainty, and leverage its skilled energy workforce to anchor next-generation hydrogen and industrial value chains as global markets shift.

The primary risk facing Alberta’s hydrogen ecosystem is not technology or resources, but political will. Unless the province designates hydrogen as a project of provincial interest — with timelines and governance comparable to those embedded in its agreement with Ottawa — proponents will face uncertainty and fragmented policy that deter investment.

Alberta’s choice is not hydrogen versus oil, but between a narrow, bitumen-only pathway and a diversified portfolio in which hydrogen is a pillar of long-term competitiveness.

To foster investment in Alberta’s hydrogen ecosystem, three targeted actions are needed.

First, explicitly recognize hydrogen in Canada–Alberta MOU implementation. The MOU’s committee can embed hydrogen alongside other priorities. Its work on carbon pricing, CCS, and infrastructure should include milestones for hydrogen-ready pipelines, storage, and hubs — ensuring today’s decisions enable tomorrow’s low-carbon fuels.

Treating hydrogen infrastructure with the same seriousness as flagship projects like the Pathways CCS project or new pipelines would signal that hydrogen is part of Alberta’s energy future, not an afterthought.

Second, refresh Alberta’s hydrogen road map with industry input. With the same urgency applied to Pathways and pipelines, the province should co-develop near-term hydrogen projects — industrial fuel-switching, heavy-haul corridors, and export-linked ammonia — that can reach final investment decision this decade, supported by stable policy.

Third, align incentives with diversification. Alberta is extending generous support for CCS and data centres; parallel, targeted tools for hydrogen production and demand would show the goal is not simply more carbon-managed bitumen, but a broader, low-carbon industrial base.

Alberta has already negotiated significant flexibility from Ottawa in exchange for a vision of itself as a global energy superpower. The question is whether “energy” in that vision includes hydrogen in a meaningful way. The technology, geology, and industrial capability for low-carbon hydrogen already exist; what’s missing is a political decision to make hydrogen part of the province’s core energy narrative.

Alberta’s future competitiveness will depend not only on the barrels it ships, but on the low-carbon molecules it can supply to a world that continues to decarbonize and adopt clean fuels.

Rebecca Goldsack is chief operating officer of Diesel Tech Industries.

Maike Althaus is vice-president, government relations and public affairs, Canadian Hydrogen Association