Turning Forestry Waste Into Industrial Fuel

Sep 23, 2025 - yesterday

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The government of Alberta is investing $3 million from the TIER fund into a new hydrogen project that will help industry create jobs, attract investment and reduce emissions.

Countries around the world are looking for alternative fuel sources for industries like transportation, heavy manufacturing and power generation. As the largest energy producer in Canada, Alberta has the resources, business-friendly environment and expertise needed to become a world leader in developing hydrogen – a clean energy carrier that produces no emissions.

Alberta’s government is investing $3 million through Emissions Reduction Alberta to help Calgary-based Hydrogen Naturally turn forestry waste like woodchips, sawdust, plants and other organic material into hydrogen. This new technology will capture the carbon that would normally be released into the air during this process and store it underground.

“Hydrogen offers major potential for Alberta to leverage our vast natural resources, skilled workforce and existing energy infrastructure," stated Dale Nally, Minister of Service Alberta and Red Tape Reduction. "Alberta is the largest hydrogen producer in Canada, and we’re just getting started. Investing in this promising, emissions-free, economically friendly fuel source is diversifying Alberta’s economy, creating jobs and positioning Alberta as a world leader.”

“We have the energy and the innovation to help power the world in the most environmentally responsible way," commented Rebecca Schulz, Minister of Environment and Protected Areas. "That’s why we are investing in technology and innovation to help create jobs, fuel our economy and keep attracting investments into our province.”

Hydrogen Naturally will use provincial funding for a feasibility study that will provide the regulatory, engineering and environmental information needed to build its first hydrogen production unit in Alberta.

“This funding accelerates the scale-up of breakthrough technologies, paving the way for a low-carbon future in Alberta," said Justin Riemer, chief executive officer, Emissions Reduction Alberta. "Companies like Hydrogen Naturally showcase how innovation and strategic investment can deliver tangible emissions reductions while fueling economic growth.”

“The Government of Alberta, through Emissions Reduction Alberta, will play a pivotal role in advancing our negative-emission hydrogen facility, which uses innovative gasification technology to utilize forest harvest residuals and firekill," stated Brett Jackson, president, Hydrogen Naturally. "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.”

Alberta is becoming the destination of choice for investors and innovators in the hydrogen sector, with a growing number of promising opportunities presented by hydrogen production and technologies across the province.

Quick facts

Hydrogen Naturally was incorporated in Alberta in 2022 and is headquartered in Calgary.
The company has plans for hydrogen production hubs across Canada and the United States.
The worldwide hydrogen market is estimated to be worth more than $2.5 trillion per year by 2050.
Alberta’s pipeline infrastructure, carbon capture technology, expertise in energy exports, and proximity to key markets give the province an advantage in hydrogen production and use.
Compared to other emissions-free alternatives, hydrogen is ideal for moving heavy freight in Alberta’s cold climate and shows promise for its ability to store and transport renewable energy.
To date, Alberta’s government has invested $43 million into 13 hydrogen technologies through Emissions Reduction Alberta, with a collective total value of more than $250 million.

This funding is through the industry-funded Technology Innovation and Emissions Reduction (TIER) program.

Source: Province of Alberta