Choosing heat pumps over air conditioners would reduce Canadian emissions and cut energy costs by billions, research finds

A new report from the Building Decarbonization Alliance, Canadian Climate Institute, Efficiency Canada, and Greenhouse Institute shows that Canadians are missing a massive opportunity to reduce emissions from home heating and save billions on their energy bills. 

The need for cooling is becoming a matter of life and death in Canada. The 2021 heat dome in BC is the single deadliest weather event in Canadian history, and with temperatures reaching over 40 degrees in BC this month, it’s no surprise that nearly 7,000 Canadians are adding a central air conditioning system to their home every week. 

In doing so, they are missing a tremendous opportunity to reduce their greenhouse gas emissions and save on their energy bills while improving their quality of life. The Cool Way to Heat Homes finds those same consumers would save a collective $10.4 billion in energy bills and reduce emissions from home heating by 19.6 million tonnes by 2035 if they installed heat pumps instead, all while obtaining the same cooling benefits. 

Air conditioners and heat pumps work in mostly the same way: they cool spaces by moving heat from one place to another. The difference is, air conditioners only move heat in one direction, from indoors to outdoors, whereas heat pumps are designed to switch directions and bring heat inside, making them a solution for both heating in the colder winter months and cooling as temperatures heat up in summer. And because they are moving heat instead of creating it, they are incredibly efficient at heating homes—resulting in an annual energy savings of $349 for the average Canadian home by 2030, and substantially more for households using expensive energy sources like electric resistance or oil.  

Since air conditioners are typically only replaced when they fail, every week 7,000 Canadian homes are locked out of the benefits of heat pumps for decades to come. The Cool Way to Heat Homes explores a range of policy options for all levels of government to turn this challenge into a huge opportunity, including smart regulations, updated building codes, and targeted incentives. These actions would benefit HVAC manufacturers, distributors, and contractors while helping Canadians adapt to increasingly extreme temperatures. 

The difference between an air conditioner and a heat pump is minimal, but the benefits of switching are massive. By encouraging a market shift to heat pumps, policymakers can unlock billions of dollars in net benefits, all while making major progress towards a net-zero economy.

"As households across the country look for ways to adapt to increasingly dangerous summer heat, this report shows how we can turn a serious challenge into a tremendous opportunity. Encouraging the installation of heat pumps over air conditioners is a no-regrets action that we can take today that will save Canadians billions of dollars in energy costs while lowering our greenhouse gas emissions by millions of tonnes."

Bryan Flannigan, Executive Director, Building Decarbonization Alliance

"Heat pumps provide cost-effective cooling for people living in Canada, as this analysis shows. As summers get longer and hotter across the country, having access to cooling is becoming essential and can be life-saving. Widespread adoption of heat pumps can help households adapt to the effects of climate change without increasing emissions."

Sarah Miller, Research Lead, Adaptation, Canadian Climate Institute

"This report adds to a growing body of research on the integral part heat pumps play in Canada’s net-zero emissions path. Increased heat pump adoption can save Canadians billions of dollars collectively while reducing home heating emissions by millions of tonnes. To unlock these savings, the federal government must increase incentives and require all new air conditioner sales to be heat pumps."

Brendan Haley, Policy Director, Efficiency Canada

“Too many Canadians are being saddled with one-way central air conditioners that sit idle half the year. Two-way heat pumps can both keep families cool in summer and help heat homes in winter. Installing heat pumps instead of central ACs will improve comfort, save money, and cut bills. It’s a win-win-win for Canadian families.”

Alexander Gard-Murray, Director, Greenhouse Institute

Contact 

Peter Hemminger
Acting Director of Communications and Knowledge Mobilization
Transition Accelerator
(403) 710-5119
phemminger@transitionaccelerator.ca 

 

About the Building Decarbonization Alliance 

An initiative of the Transition Accelerator, the Building Decarbonization Alliance is a cross-sector coalition that works to inspire and inform industry and government leadership, accelerate market transformation, and get the building sector on track to meet its emissions reduction goals. We convene conversations, conduct original research, and identify structural barriers to electrification— and work with our partners to overcome them. 

Join us on October 16 and 17 for the 2023 National Building Decarbonization Forum in Ottawa.

About the Canadian Climate Institute 

The Canadian Climate Institute is Canada’s leading climate change policy research organization, producing the analysis and evidence-based recommendations that are needed to advance climate resilience, chart net zero pathways, and drive long-term prosperity. The strength of our work is rooted in our independence, in the diversity and depth of our staff, board and advisors in fields from climate mitigation to adaptation and clean growth, and in the breadth of the stakeholders and rights holders we engage through our research. 

About Efficiency Canada 

Efficiency Canada is the national voice for an energy-efficient economy. We envision a future where Canada uses energy efficiency to its fullest potential. This means maximizing the benefits of energy efficiency resulting in a sustainable environment, a productive economy, and a just and equitable society. Efficiency Canada is housed at Carleton University’s Sustainable Energy Research Centre, which is located on the traditional unceded territories of the Algonquin nation. 

About Greenhouse Institute 

Greenhouse is an independent research institute dedicated to finding and fighting for innovative solutions to the climate crisis. We combine statistical analysis, computer modelling, and community engagement to develop pragmatic policies that reduce emissions while increasing prosperity. 

New research shows how Canada can compete in a low-carbon economy

New data shows what Canada can do to compete for low-carbon investment

Toronto, ON – Canada must take urgent action to close the incentive gaps for low-carbon technology investment. We’re at risk of missing out on big opportunities because our investment incentives aren’t competitive with the United States.

That’s the conclusion of new modelling released today in a working paper by Clean Prosperity and The Transition Accelerator.

The working paper is the first attempt to show the dollar value of the incentives offered by the Canadian and US governments for low-carbon technology investment. It looks at seven key technologies, including electric vehicles, solar energy, hydrogen, direct air capture, sustainable aviation fuel, and carbon capture and storage.

“Compared to the United States, Canada isn’t yet a competitive destination for low-carbon investment,” said Clean Prosperity Executive Director and working paper co-author Michael Bernstein.

“It’s as if Canada is offering companies a coach ticket with the chance of an upgrade, while the Americans are offering to send them straight to first class. But there are strategic moves we can make to fix that.”

Last August, the United States’ Inflation Reduction Act (IRA) introduced massive subsidies for a wide range of low-carbon tech, mainly in the form of production tax credits. Canada introduced its own incentives in response, but so far these measures aren’t enough to make Canada as attractive as an investment destination.

However, “There’s an opportunity here for Canada to take advantage of. With a smart industrial policy response to the IRA, Canada can stay competitive and grow a prosperous low-carbon economy,” says co-author and Transition Accelerator Research Director, Bentley Allan.

The working paper recommends that the federal government introduce new measures in Budget 2023 to improve Canada’s competitiveness as a destination for low-carbon investment, namely:

  • Carbon contracts for difference, a kind of insurance policy on the future value of carbon credits that will give firms the confidence to make big decarbonization investments.
  • Strategic financial support for industries where Canada can compete globally and generate significant economic benefits, good jobs, and manufacturing value added.


Below:
How the specific measures proposed by Clean Prosperity and The Transition Accelerator in their new working paper could help close the incentive gap between Canada and the United States.

 

How contracts for difference could boost blue hydrogen

One industry the working paper examines is blue hydrogen production, which can be produced with low greenhouse gas emissions and offers an emissions-free, affordable fuel for transport trucks, trains, ships, and airplanes.

The IRA tax credits are worth about a dollar per kilogram of hydrogen. In Canada, investment tax credits deliver a subsidy of only about nine cents per kilogram—in a best-case scenario, where firms are allowed to benefit from separate tax credits for carbon capture and hydrogen production.

A blue hydrogen facility in Alberta, for example, could become a competitive investment proposition if the federal government guarantees the future value of the facility’s carbon credits using a carbon contract for difference.

With a contract for difference to backstop the value of its carbon credits, the Alberta facility’s guaranteed annual revenues rise from $0.09/kgH2 to $1.05/kgH2:

Average annual revenue incentives for blue hydrogen facilities in Alberta and Texas, 2023-2032 (Canadian dollars)


Strategic financial support: where?

In addition to carbon contracts for difference, the working paper recommends that the federal government provide targeted support in areas where Canada has a strategic advantage.

These are industries where Canada can compete globally and generate significant economic benefits, good jobs, and manufacturing value added. Examples include:

  • Direct air capture: A production tax credit for direct air capture could help launch a major new industry that will be critical for meeting our climate targets, while also generating clean economic growth.
  • Electric vehicles: The government could fulfil Canada’s ambition of creating a complete mines-to-mobility value chain by complementing existing investments in EV production with incentives for upstream mining of critical minerals and midstream chemical processing.
  • Sustainable aviation fuel: With additional public support, Canada has the resources and expertise to develop a significant sustainable aviation fuel industry, which could generate economic benefits in rural communities across the country.

 

Read the Working Paper
Creating a Canadian Advantage: Policies to help Canada compete for low-carbon investment

Feasibility study demonstrates Calgary Region’s potential as a major hydrogen hub

Alberta “superbly positioned” to take a leadership role in growing sector

Calgary, AB – The Calgary region has what is needed to establish a major hub for the emerging hydrogen economy, concludes the report Towards A Fuel Hydrogen Economy in the Calgary Region: A Feasibility Study.

The report authored by The Transition Accelerator for the Calgary Region Hydrogen Task Force says Alberta is “superbly positioned” to be a leader in the hydrogen economy. It recommends establishing a hydrogen hub in the Calgary region to build new value chains to produce, transport and use hydrogen as a fuel.

The goal of the study was to assess the potential for the Calgary region to participate and benefit from the emerging fuel hydrogen economy. The study identifies a $4.6 billion per year market potential for fuel hydrogen production that could be used in the Calgary region. It also encourages the development of hydrogen as part of the region’s pathway to a net-zero emission energy system.

The report also recommends a Calgary region hub links with the Edmonton Region Hydrogen Hub and initiatives in other population centres across Western Canada to create hydrogen corridors that support heavy duty road and rail transport.

Hydrogen is an energy-rich gas that can be produced with low greenhouse gas (GHG) emissions for use in heavy-duty transportation, as well as heat and power generation. It is produced through various methods including, natural gas reformation with carbon capture and storage, or water electrolysis using renewable electricity.

Global market expansion for lower emission energy carriers like hydrogen are critical to meet national net-zero targets by 2050, a priority of the economic strategy, Calgary in the New Economy, and Resilient Calgary: Council’s Strategic Direction 2023-2026.

The report concludes that the Calgary region has substantial potential markets for fuel hydrogen as well as the potential to produce and transport low GHG hydrogen to points of demand.

The Task Force members include: Calgary Economic DevelopmentBighorn EnergySpectrumH2Rocky Mountain GTLCanadian Pacific RailwayATCONikola Corporation2G Energy and Calgary Airport Authority.

Task Force members represent all sectors of the value chain (production, transportation and end-use) critical to establishing a viable hydrogen economy. The Feasibility Study is the first of four steps to create a regional hydrogen strategy.

It included eight recommendations:

  1. Build a consortium around a shared vision for a fuel hydrogen future.
  2. Partner with the Edmonton Regional Hydrogen HUB.
  3. Connect with CP Rail, Calgary Transit and Alberta Motor Transport Association to support hydrogen vehicle trials.
  4. Focus on smaller-scale, distributed hydrogen production to serve the fuel market.
  5. Support carbon capture and storage for blue hydrogen production.
  6. Support renewable generation and green hydrogen production.
  7. Deploy hydrogen for heat and power generation.
  8. Engage the academic community.

 

Read the Feasibility Study along with the Hydrogen Strategy for CanadaAlberta Energy Transition Study and Alberta Hydrogen Roadmap.

Introducing Electrifying Canada

Electrifying Canada positions Canada to lead in the race to net zero.

Montreal, QC – The Transition Accelerator is bringing together nearly thirty organizations from finance, industry, organized labour, Indigenous communities, and civil society to jump-start Canada’s clean electricity future. Electrifying Canada convenes the key actors for planning, financing and building the electricity system of the future.

While there’s no single path to achieving Canada’s net-zero ambitions, electrification is a cost-effective and dependable way to decarbonize large parts of our economy, including high-emitting sectors. A low-carbon grid is the backbone of future economic prosperity. However, electrification is not happening at the pace and scale needed to meet the challenges of the future.

By fostering dialogue between partners on the supply, demand, and finance sides of the electricity sector, Electrifying Canada is positioning Canada to compete in the net-zero economy. This work is made even more pressing in the face of fast-forming global low-carbon supply chains. Tremendous economic opportunity exists by harnessing and growing Canada’s non-emitting electricity to meet new demand.

“This next phase for Electrifying Canada is a result of many partners doubling down on a commitment to collaborate,” says Moe Kabbara, Vice President at The Transition Accelerator. “Developing a consistent forum for information sharing and collaboration will bring us closer to overcoming the barriers to building a future-ready electricity system. Electrifying Canada brings together the key voices that will get this done.”

The Transition Accelerator is a pan-Canadian organization dedicated to identifying and advancing viable pathways to Canada’s 2050 climate targets. It works with stakeholders in government, industry, and beyond to find and implement practical solutions to the challenges of the net-zero transition.

“Building a reliable and resilient grid to power the net-zero industrial future is one of the most important challenges of our time; This analysis supports our efforts at BMO to be our clients’ lead partner in the transition to a net-zero world,” says Susan McGeachie, head of the BMO Climate Institute. “We are looking forward to working with The Transition Accelerator to continue advancing Canada’s climate goals.”

“Electrification presents incredible opportunities for Canada, particularly to attract new businesses and international investment,” says Francis Bradley, president and CEO of Electricity Canada. “For Canada to stay competitive in a low-carbon economy, we need to effectively build more non-emitting electricity resources, faster—and we need to grow a skilled workforce to achieve that.”

Canada’s electricity landscape is complex, and coordinating between provincial governments, regulators, utilities, and planning bodies to align outlooks and investments with economy-wide targets won’t happen overnight. That’s exactly why Electrifying Canada’s sustained, collaborative approach is needed. By bringing together leading experts and sector partners from across Canada, the initiative aims to solve entrenched coordination challenges while identifying new projects and financing opportunities.

“At the Ivey Foundation we are doubling down on accelerating Canada’s transition to a decarbonized economy,” says Dr. Bruce Lourie, President of the Ivey Foundation, one of The Transition Accelerator’s major funders. “Right now, technology is not the biggest barrier to meeting our net-zero goals. To build a right-sized clean grid we need exactly the kind of cross-sector coordination and collaboration Electrifying Canada will undertake.”

Electrifying Canada partners are:

  • BMO
  • Cameco
  • Canadian Climate Institute
  • Canadian Nuclear Association
  • Canadian Renewable Energy Association
  • Dunsky Energy + Climate
  • Electricity Canada
  • Electricity Human Resources Canada
  • Energy Modelling Hub
  • First Nations Major Projects Coalition
  • Hydro One
  • IBEW CANADA
  • Innergex
  • International Institute for Sustainable Development
  • Ivey Foundation
  • Marine Renewables Canada
  • Net-Zero Atlantic
  • Ontario Power Generation
  • The Pembina Institute
  • QUEST Canada
  • RBC Tech for Nature
  • Rewiring America
  • Rio Tinto
  • Scotiabank
  • Teck
  • Trottier Family Foundation
  • Waterpower Canada

Announcing the recipients of the 2022 Transition Pathways research grants

The Transition Accelerator is pleased to announce the recipients of our second Transition Pathways research grant. Launched in April 2021 to develop transformational pathways to reach net-zero greenhouse gas emissions, this funding program offers up to $20,000 to up to three projects that define credible, compelling, and capable transition pathways across Canada.

In reviewing this year’s applications, we were humbled by the breadth of research being done to bring the vision of a prosperous net zero future into reality. The Transition Accelerator would like to thank everyone who applied for this opportunity, and to extend our congratulations to our 2022 grant recipients.

Transdisciplinary Multi-Stakeholder Approach to Steering Net Zero Transitions: Sociotechnical System Configurations for Modelling and Simulating Atlantic Canada’s Transition Pathways

Dr. Stanley Asah, with Hamid Afshari, Ahmed Saif, Michelle Adams, and Peter Tyedmers

For this study, Dr. Asah and his team will partner with Net Zero Atlantic to carry out a series of workshops and activities aimed at developing desirable net zero transition pathways in Atlantic Canada. These transdisciplinary, multi-stakeholder sessions will use an iterative, deliberative approach to configuring transition pathways and embedded socio-technical systems, with the aim of informing the planning, decision-making and investment decisions that will lead to an effective, efficient net zero transition.

To ensure that the systems and transition pathway configurations that emerge from these deliberations are authentically co-created by stakeholders, the deliberations will be recorded and transcribed verbatim, and coded using thematic and narrative data coding and analytic techniques. This data will be used to configure socio-technical systems and transition pathways that represent as closely as possible the aggregate realities of participants, and ultimately of Atlantic Canada. These results will also help determine data and other resource needs for empirical simulation modeling of sociotechnical systems and transition scenarios.

About Dr. Asah:
Stanley Asah is the Canada Research Chair 1 on Social Dimensions of Cleaner Technologies. A faculty member at Dalhousie University, his research focuses on sociotechnical system analysis, adoption and diffusion of cleaner technologies, cleaner technologies justice, and the social impacts and acceptability of cleaner technologies.

Project Team

Hamid Afshari, Assistant Professor: Applied Optimization and systems modeling, Sustainable Supply Chain Management, Sustainability, Advanced technologies, Dalhousie University

Ahmed Saif, Associate Professor: Large-scale Optimization and systems modeling, Decision Making under Uncertainty, Disaster Relief Logistics, Sustainable Supply Chains, Hybrid Renewable Energy Systems, Dalhousie University

Michelle Adams, Professor: Technology Science-Policy, Policy sciences, Industrial sustainability, Renewable energy, Industrial ecology, Industrial symbiosis, Resource efficiency, Sustainable development, Public engagement, Dalhousie University

Peter Tyedmers, Professor: Ecosystems, Industrial sustainability, Life cycle assessment, Ecological economics, Carbon footprint, Ecosystem services, Dalhousie University

Transit Bus Route Electrification
Dr. Lina Kattan

Dr. Kattan’s project aims to develop a model for optimising transit routes for Battery-Electric Buses (BEB), incorporating the placement of charging stations and charging durations along the routes. The location and duration of charging is impacted by a range of factors, including more deterministic items like passenger wait times, operating costs, and capital costs, along with less predictable items like passenger behaviour and the battery performance of BEBs, which is strongly affected by severe weather.

The models developed in this project will look at one- and two-way high-demand bus routes, using an environment-centric approach to optimizing charging station locations, and a stochastic model to address charging times. It will aim to minimize operating costs, reduce passenger in-vehicle delays, and maximize BEBs’ ability to reduce the environmental impact of public transit, as measured in terms of greenhouse gas emissions.

About Dr. Kattan:
Dr. Lina Kattan is a Professor of Transportation Engineering at the Department of Civil, Schulich School of Engineering, University of Calgary. She holds Canada Research Chair (CRC) Tier I in Integrative Transportation Systems through Automation and Connectivity, and the Urban Alliance Chair in Transportation Systems Optimisation. Dr. Kattan is also the Director of the NSERC CREATE program in Integrated Infrastructure for Sustainable Cities (IISC), which focuses on finding systematic solutions to understand the multifaceted needs of tomorrow’s cities.

Analyzing the potential of hydrogen fuel cell electric vehicles as distributed energy storage or generators to decarbonize transportation and power sectors
Dr. XiaoYu Wu

Decarbonizing the transportation sector and scaling up energy storage will be critical for the transition to a net-zero economy. This project will study the potential of connecting fuel cell electric vehicles (FCEVs) to the electrical grid as distributed energy storage and/or electricity generators to supply electricity to the grid when needed. This FCEVs-to-grid pathway can maximize the benefits of the hydrogen infrastructure expansion in Canada to decarbonize both the transportation and power sectors, while providing incentives to FCEV owners. The study will use heavy-duty trucks and trains, the potential early adopters of FCEVs, as two examples to identify potential operational and technical constraints and evaluate the overall economic and environmental benefits.

About Dr. Wu:
Dr. XiaoYu Wu is an assistant professor in the Department of Mechanical and Mechatronics Engineering at the University of Waterloo. His research group, Greener Production Group works on both technology development and techno-economic analysis of different technologies for energy conversion and chemical production, such as hydrogen/ammonia conversion and energy storage.

New roadmap aims to accelerate Canada’s battery metals industry to meet EV demand

The Transition Accelerator’s newest report is a call to action for a bold national strategy from the Battery Metals Association of Canada (BMAC) in partnership with Accelerate, Canada’s Zero Emission Vehicle Supply Chain, and the Energy Futures Lab.

newly released report outlines a national strategy roadmap to create a made-in-Canada battery metals value chain. The roadmap outlines concrete actions, policy recommendations and cross-cutting initiatives that if implemented, have the potential to position Canada as a global competitor in electric vehicle (EV) production.

In order to retain its global position, meet its climate goals, and keep pace with growing demand, Canada will need to produce 1.3 million zero-emission vehicles (ZEVs) by 2030. Addressing the importance of battery metals to meet these needs, the report proposes a shift in the status quo. While upstream mining and downstream manufacturing are well established, the report positions midstream operations, i.e. chemical processing of mined materials into battery active materials, as the crux of a competitive, integrated supply chain driving demand for upstream mining as well as supply for fabrication.

While the development of an electric vehicle ecosystem represents a once-in-a-generation opportunity to support long-term Canadian prosperity, getting there will require deliberate, strategic action from government and industry. If Canada wants to lead the way to a net-zero world and be a competitor in its economy, we need to set bold targets, clear timelines, and collaborative goals. This report and the roadmap it provides are the first steps on the way to that robust national strategy.

Bentley Allan, Ph.D, Lead Author and Resident Fellow at The Transition Accelerator

The development of an EV ecosystem industry represents a once-in-a-generation opportunity. Working collaboratively in partnership with BMAC, the Energy Futures Lab and Accelerate, the report was led by Transition Accelerator’s Resident Fellow for Green Industrial Policy, Bentley Allan, who proposes that “Canada needs a roadmap that provides these targets, timetables, and priority actions to guide and align investments. A roadmap is, in turn, the foundation of a national industrial strategy that positions the industry in the broader domestic and international landscape”.

To accelerate Canada to net zero, the roadmap illustrates the need for a collaborative effort:

  • Reaching targets will require a public-private-Indigenous partnership
  • The formation of an independent organization and an autonomous government agency or task force
  • Guidance for said agency/task force in the form of clear targets and an adaptive set of policy tools to meet the challenge at hand.

 

The roadmap for Canada’s Battery Value Chain is just that, a mechanism to be brandished for action to provide prosperity on the path to net zero. Find the full report and executive summary here.

Announcing the Recipients of the Transition Pathways research grants

The Transition Accelerator is pleased to announce the recipients of our Transition Pathways research grants. This funding opportunity was launched in April 2021 in order to develop transformational pathways to reach net-zero greenhouse gas emissions.

In seeking submissions, we looked for projects that define credible, compelling, and capable transition pathways across Canada. These could be local, sub-regional, or regional in scope, and should be anchored in the Accelerator’s pathways methodology. We would like to thank all those who applied to this opportunity. Canada’s net-zero future is bright.

This year’s recipients are:

Pathway to accelerate the diffusion of demand-side low-carbon innovations and socio-technical energy system change
Dr. Christina E. Hoicka and Dr. Jenny Lieu

This research will investigate the pathways to accelerate the diffusion of demand-side low-carbon innovations and socio-technical energy system change. Specifically, the research will map out whether innovations are pertinent, which can reinforce each other, and which policies, stakeholders and legitimacy factors help them and their interactions. The variables that the innovations were coded for can be considered “score cards” to analyze whether an innovation has potential for system disruption or reinforcement, and the level of policy and legitimacy support it receives. Finally, the research will analyze the relative diffusion rates of complementary innovations that are required to support renewable energy and electric vehicle deployment and also identify challenges to mapping and implementing pathways.

Understanding and managing the contraction of infrastructure for internal combustion engine vehicles
Sara Hastings-Simon, Ph.D

The transportation sector is responsible for 25% of Canada’s greenhouse gas emissions, making it an important focus for efforts to address climate change. Reducing emissions through electrification of transportation will reduce the demand for gasoline and diesel fuels and the number of internal combustion engine (ICE) vehicles in the fleet declines. While there is much attention paid to questions around access to charging infrastructure for electric vehicles, the process of contraction of ICE gasoline station infrastructure is less studied. But at some point, in the decline ICE vehicle owners will face the same challenges that have plagued electric and hydrogen vehicle owners – namely the availability of sufficient fueling infrastructure to allow for convenient operation of the vehicles. This raises a number of potential issues, from the risk of stranded assets for owners of the ICE vehicles, to implications for land use planning for gasoline station locations, that will require policy interventions. This project will examine the process of contraction of gasoline station infrastructure to build a better understanding of how the contraction will progress, identifying potential risks and laying out solutions to manage the transition.

Integrating the gas and electrical grids for a net-zero future
Dr. Gordon Mctaggart-Cowan, Dr. Taco Niet, and Dr. Colin Copeland

To achieve impactful change quickly on our way to a net-zero future, we need to get renewable energy to end users through all available pathways. This project investigates integrating the existing electricity and natural gas networks to store and distribute low-carbon energy. Excess renewable electricity will be used to generate hydrogen which can be stored in the gas grid. When demand is high, local generators will convert the hydrogen back into electricity as well as providing heating/cooling services. Working with project partner Enbala Networks Inc., the research team is modelling local and regional-level systems to quantify the greenhouse gas advantages of this exciting approach.

Task Force established to Advance Hydrogen Economy in Southeast Alberta

Medicine Hat, AB – The Southeast Alberta Hydrogen Task Force (Task Force), an independent working group created to establish a framework to implement a hydrogen economy in Southeast Alberta, was officially launched today.

Invest Medicine Hat is leading a world-class Task Force composed of Prairies Economic Development Canada (PrairiesCan), City of Medicine Hat, City of Brooks, Palliser Economic Partnership, CF Industries, Methanex Corporation, APEX Regional Innovation Network (Alberta Innovates, Community Futures Entre-Corp and Medicine Hat College), RockPoint Gas Storage, Campus Energy, Envoy Energy and The Transition Accelerator. The Task Force will produce foundational tools that detail the opportunities available to advance a zero-emission fuel economy in Southeast Alberta.

The Southeast Alberta Task Force was modelled after the Alberta’s Industrial Heartland Hydrogen Task Force, whose research paved the way for the Edmonton Region Hydrogen HUB to be established.

This federal investment in the Southeast Alberta Hydrogen Task Force is just one part of the Government of Canada’s Hydrogen Strategy and will help our country reach net-zero emissions by 2050. By accelerating the production and use of cleaner energy sources, we are laying the groundwork for diversifying the economy, creating quality jobs, and supporting Alberta’s energy workers in the region.

The Honourable Jim Carr, Minister and Special Representative for the Prairies, on behalf of the Honourable Mélanie Joly, Minister of Economic Development and Official Languages, and Minister responsible for Prairies Economic Development Canada (PrairiesCan)

The Government of Alberta believes hydrogen holds great potential for our province – both as a clean source of energy, and as a source of jobs and investment that will support the continued growth of our energy sector. Establishing a regional task force to build the foundation for those future investments is an important step to building up this industry in our province. I commend all the involved parties and look forward to working with them in the years to come.

Honourable Dale Nally, Associate Minister of Natural Gas and Electricity

“The City of Medicine Hat is proud to play a leadership role in establishing Canada’s second industrial hydrogen hub,” said Mayor Ted Clugston, City of Medicine Hat. “This foundational work will form the basis of a long-term, regional economic development strategy, with the goal of creating thousands of jobs and hundreds of millions of dollars of investment in the local economy.”

Global hydrogen demand is forecast to grow exponentially in the coming decades as countries around the world drive to net zero. The Task Force will explore Southeast Alberta’s potential as a hydrogen hub, analyzing the region’s unique strengths and opportunities that could make it among the world’s lowest cost producers of low-carbon hydrogen.

The Task Force’s foundational study is the first step toward identifying broader economic opportunities associated with growing large-scale clean hydrogen production and use. The Task Force’s efforts will complement national and provincial hydrogen and natural gas strategies.

Clean energy is the future, and we believe hydrogen will be essential to meeting the world’s clean energy needs. That’s why CF Industries is pleased to join Southeast Alberta’s Hydrogen Task Force and begin to prepare our region for the transition and opportunities ahead of us. Working together, we can harness Alberta’s unparalleled strengths to become a leader in the coming hydrogen economy.

Wayne Steinke, General Manager, CF Industries Medicine Hat Nitrogen Complex

Methanex produces large quantities of hydrogen today which is ultimately used in the production of methanol. We are pleased to be involved in this collaborative task force to more fully evaluate the hydrogen opportunity and the associated prospects for carbon capture, utilization and storage.

Mark Allard, VP North America, Methanex Corporation

“The Southeast Alberta Task Force is the result of government and industry coming together to champion real change so Alberta can win economically and environmentally in a changing world,” said Dan Wicklum, CEO, The Transition Accelerator. “Picture Alberta using and supplying the world with zero-emission fuel made by upgrading natural gas or renewable energy. This could be a part of a very strong future for Alberta and Canada.”

“Alberta’s abundant, low-cost feedstock, skilled labour, and extensive infrastructure can make us a leader in the production, use and export of zero-emission hydrogen,” acknowledges Brad Maynes, managing director of Energy and Infrastructure, City of Medicine Hat. “In conjunction with our partners in the Southeast Region, we will play a key role in developing a framework that will power our economy and build our national and global reputation as innovators.”

Campus Energy is a proud owner and operator of critical energy infrastructure assets in Southeast Alberta and is developing new energy infrastructure that supports Canada’s net-zero Goals. We are pleased to support the City of Medicine Hat in their efforts to advance a diversified energy economy with opportunities for new infrastructure investment and increased skilled employment in the region. As Southern Alberta’s leader in emission sequestration, Campus is keen to support local industry partners and regional stakeholders as a low-carbon hydrogen production and delivery strategy come into focus through the Transition Accelerator.

Jeremy Baines, CEO Campus Energy Partners

The acceleration and success of the energy transition towards hydrogen will rely on collaborative efforts such as the Southeast Alberta’s Hydrogen Task Force. Envoy Energy is looking forward to playing a key role in the fueling infrastructure network and figuring out ways to make it cost effective, flexible and convenient.

James Ro, President, Envoy Energy Fuels Inc.

Over the next six months, the Task Force will work collaboratively to set the stage for the long-term build out of a regional hydrogen economy. The Task Force’s foundational work will be completed in early 2022, with a final report summarizing the effort to follow.

Transition Pathways – Research Funding Opportunity

The Transition Accelerator is looking to collaborate with researchers across the country interested in developing transformational pathways to reach net-zero greenhouse gas emissions. To this end, we will be awarding small grants to support pathways scoping studies.

We seek submissions for projects that can help define credible, compelling, and capable pathways across Canada. These can be local, sub-regional, or regional in scope, and should be anchored in the Accelerator’s pathways methodology.

There is no formal application form, but the applicants will need to submit a short project proposal by Monday, May 31, 2021.

Applicants are also eligible to apply for Mitacs funding to support students working on the projects they submit to The Transition Accelerator for funding consideration.

The Transition Accelerator policy regarding administration and overhead fees charged to grants
The Transition Accelerator’s official policy is that the maximum rate for administration and overhead costs that may be applied against any funding we provide is 10%, regardless of who the recipient organization is. While our organization recognizes and values the critical role that university administration and related infrastructure play in supporting and enabling research and knowledge mobilization, we feel that the public funding should support these costs, and our cap of 10% is meant to offset any direct expenses associated with administering a particular grant. For smaller grants (e.g. $20,000 and below), our policy is that all administration or overhead fees must be waived.

Application Guidelines

Eligibility
Applicants must be affiliated with a Canadian university, research institution or thinktank. Applications may involve investigators at more than one institution. The principal investigator must not already have received funding from the Transition Accelerator. Projects may involve societal partners.

Level of Funding
Up to three proposals will be selected and awarded a maximum of $20,000 each. We regard these scoping studies as an entry point to potential long-term collaboration with The Transition Accelerator to fully develop novel pathways. The Accelerator will be open to working with teams involved with successful projects to secure long-term funding to support larger initiatives.

Domains of the Proposal
We welcome proposals that apply The Transition Accelerator methodology in domains that fall inside or outside our existing priorities (building decarbonization, electric vehicle market penetration, electrification and grid Integration, and Canada’s hydrogen economy). Proposals in domains not related to existing priorities should nevertheless be in areas that:

  1. Have the potential to lead to substantial GHG reductions
  2. Are experiencing other social and economic issues/roadblocks; and
  3. Contain willing partners and agents of change.


Evaluation Criteria

Applications will be evaluated according to the following main criteria:

  • Relevance to the Transition Accelerator net zero mission
  • Engagement with the pathway methodology
  • Potential to open the door to substantial GHG reduction (scaling up)
  • Potential for other positive societal benefits (economic, social, environmental, etc.)
  • Identification of potential societal partners enthusiastic about pursuing pathway development
  • Overall quality of the proposal

 

The selection committee will be composed of one member of the Transition Accelerator Board and two Transition Accelerator Research Directors. Selected projects will be those judged to have the greatest potential for positive impact.

Application
There is no application form. Proposals should include the following elements:

  1. Project summary (max 4 pages) that addresses:
    a. Systemic presentation of the problem, and the potential to lead to substantial GHG reduction
    b. Understanding of potential solutions
    c. Objectives of the project
    d. How this project will apply the pathways methodology
    e. Potential for scaling up
    f. Role of the partner(s) and/or agent(s) of change collaborating on this project, if applicable
    g. Timeline of the project
  2. CV of the applicants (max 2 pages)
  3. Letter of support from the partner(s)/agent(s) of change, if applicable.


Submission Procedures and Deadline
The deadline to submit an application is Monday, May 31, 2021

  • Files should be sent to pathwayrfp@transitionaccelerator.ca
  • Files submitted must be in PDF format
  • File items must be clearly and consistently identified; it is recommended that only one file containing all requested items be submitted
  • All text should be single-spaced in 11-point Ariel font
  • Proposal can be submitted in English or in French


Questions

A dedicated member of our team is there to talk to you about our methodology and to answer your questions. Participants may submit questions (no later than May 28, 2021) via email to pathwayrfp@transitionaccelerator.ca.

Results Announcement
The winners of the RFP process will be announced publicly by the end of June 2020.

Canada’s first hydrogen HUB launches in the Edmonton Region backed by over $2 million in funding from three levels of government

Edmonton, AB – Picture a future for the Edmonton Region where buses, trains, heavy trucks, home heating and farm machinery all run on zero-emissions hydrogen fuel, an essential component of the new clean energy system. The region has established itself as a leader in Canada’s energy transition through the production, use and export of low-carbon hydrogen, ushering in a wave of clean energy jobs and ensuring a strong economic future.

This is the vision for the Edmonton Region Hydrogen HUB launched today by an alliance of government, Indigenous, academic and economic development leaders to kickstart the Edmonton Region’s low-carbon hydrogen economy and position the region, Alberta and Canada for success as the world shifts towards a low-carbon future to address climate change.

Backed by $1.2 million in funding from Western Economic Diversification Canada (WD), $600,000 from Alberta’s Industrial Heartland Association and $450,000 from the Province of Alberta through Emissions Reduction Alberta, the HUB’s leadership team includes Chair and Sturgeon County Mayor Alanna Hnatiw, Vice-Chair and Enoch Cree Nation Chief William Morin, Edmonton Mayor Don Iveson, Fort Saskatchewan Mayor Gale Katchur, Strathcona County Mayor Rod Frank, Lamont County Reeve David Diduck and Alexander First Nation Chief George Arcand, Jr. The Edmonton Region Hydrogen HUB is also supported by The Transition Accelerator and Edmonton Global.

This investment to launch the Edmonton Region Hydrogen HUB to accelerate the production and distribution of hydrogen fuel is part of our government’s Hydrogen Strategy and will help us achieve our goal of net-zero emissions by 2050. Today’s announcement demonstrates how our government is committed to investing in the economy, creating jobs and supporting our energy workers.

The Honourable Jim Carr, Special Representative for the Prairies

Achieving the low-carbon economy required of us will be a challenge; the hydrogen HUB checks all the boxes representing solutions to this challenge including: practical use of our current energy sector infrastructure and resources, the opportunity to be a global leader in an emerging industry, and the local unprecedented collaboration needed to achieve our ambitions.

William Morin, Vice-Chair, Edmonton Region Hydrogen HUB and Chief, Enoch Cree Nation

The HUB’s launch comes as countries around the world set net-zero targets and identify hydrogen as a vital low-carbon fuel. A final report released by Alberta’s Industrial Heartland Hydrogen Task Force outlined that Canadian hydrogen has a wholesale market potential of up to $100 billion a year and identified the Edmonton Region as the best launch point for a pan-Canadian hydrogen economy.

The region is well-positioned for success because it has one of the lowest hydrogen production costs in the world, existing experience in hydrogen production, a vast network of pipeline infrastructure, and suitable and existing sites for carbon capture, utilization and storage which are necessary to upgrade natural gas into hydrogen for use as a low-carbon fuel. The report also found that the best way to quickly achieve sufficient scale for a strong Canada-wide hydrogen economy is through the creation and deliberate connection of regional hydrogen HUBs across the country.

Hydrogen has the potential to be not just a key part of the world’s cleaner energy future, but the future of Alberta’s dynamic energy industry. The launch of the Edmonton Region Hydrogen HUB is a critical step towards building that future by establishing the local connections which will pave the way for provincial, national, and international networks in the years to come. The Government of Alberta is proud to be a partner in the development of this first Canadian HUB and we look forward to continuing our partnership with The Transition Accelerator, other levels of government, and industry as the hydrogen economy continues to gather momentum.

Dale Nally, Associate Minister of Natural Gas and Electricity, Government of Alberta

Hydrogen is redefining how we use our natural resources and the Alberta’s Industrial Heartland Association is proud to support the Edmonton Region Hydrogen HUB and its goal of accelerating a strong pan-Canadian hydrogen economy. Enthusiasm for hydrogen may be new to the world, but it’s not new to us. Advanced infrastructure, innovation, a highly skilled workforce, and low-cost feedstock, position our region as a leader in Canada’s hydrogen future. Our team is committed to stewarding this relevant work for our economy and our environment.

Alanna Hnatiw, Chair, Edmonton Region Hydrogen HUB, Chair, Alberta’s Industrial Heartland Association and Mayor, Sturgeon County

The Edmonton Region Hydrogen HUB is an example of an early hydrogen deployment HUB as outlined in the Hydrogen Strategy for Canada and will serve as a blueprint of how to accelerate a strong regional hydrogen economy that can be replicated in other regions across the country with low-cost, low-carbon hydrogen.

The HUB’s launch is a signal that work to establish a hydrogen economy in the Edmonton Region has begun. With support from The Transition Accelerator, planning is underway for over 25 potential projects related to the supply, delivery and use of low-carbon hydrogen. Potential projects include the use of hydrogen for municipal and commercial vehicle fleets and home and industrial heat and power, with more specific project details to come as they are available.

Associated links