Neudorf introduces bill to pump up hydrogen use

By Al Beeber - Lethbridge Herald on April 11, 2025.

LETHBRIDGE HERALDabeeber@lethbridgeherald.com

The Alberta government is introducing a bill that will remove barriers to blending hydrogen into the natural gas distribution system for residential and commercial customers.
Bill 52 — The Energy and Utilities Amendment Act, 2025, was introduced to the legislature on Thursday by Lethbridge East MLA and Minister of Affordability and Utilities Nathan Neudorf.
If passed, the legislation will accomplish four things:
* Give hydrogen its own definition, distinct from natural gas;
* Require regulated utilities to obtain customer support for proposed hydrogen blending projects;
* Require that only ratepayers receiving hydrogen-blended natural gas pay for the infrastructure and commodity cost of hydrogen;
* and provide the Minister of Affordability and Utilities with regulation-making authority to enable hydrogen blending.
The province says Alberta is one of the largest hydrogen manufacturers in the world, producing about 2.4 million tonnes per year — the largest amount of any Canadian province.
The province believes the legislation has the potential to further increase the demand for hydrogen which it says will create an economic driver.
“If passed, Bill 52 makes amendments to the Gas Utilities Act and Gas  Distribution Act which remove barriers to the blending of hydrogen into natural gas distribution systems while maintaining a strong  commitment to safety for Albertans,” says the government.
The changes support new technologies while ensuring the reliability  and safety of the province’s natural gas distribution system, the province says, noting that blending hydrogen with natural gas has the potential to reduce the greenhouse gas emissions of both residential and commercial heating.
Before the act can be enabled, regulations will be developed to  clarify details of implementation.
The province expects hydrogen to be an $11 trillion global industry by 2050.
In a press conference, Neudorf said only customers who receive a  hydrogen/natural gas blend will pay for additional system costs.
Neudorf said Albertans need to know they have reliable and  affordable utilities for generations to come and hydrogen provides an opportunity to ensure that.
Bill 52 will also prioritize the strengthening of the electrical grid so weather won’t impact the ability of Albertans to have power. And an updated transmission policy, said Neudorf, will mean ratepayers will  no longer be burdened with the full cost of new transmission lines.
Demand for electricity will continue to grow and there is a need to  modernize Alberta’s electricity policies, he said.
The province, Neudorf said, is also proposing to move to a day-ahead  reliability market to ensure enough power is available and reduce the risk of future grid alerts.
As part of the new bill, the government also seeks to increase the number of members on the Alberta Petroleum Marketing Commission to 13 from the current seven to “increase the range of expertise and allow for more robust governance. This will also increase support for new initiatives such as the bitumen royalty in-kind and a proposed gas  royalty in-kind, ensuring Albertans receive the maximum value for our resources.”

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