Partners involved in the Atlantic Hydrogen Alliance are taking new steps to develop a hydrogen supply chain in East Canada, the Newfoundland and Labrador Minister of Energy's office said May 15.

The AHA project, in collaboration with the province, Energy NL, and Net-Zero Atlantic, will identify the "development, construction and operations" needs for establishing a hydrogen supply chain in the region. The project aims to "provide an understanding of the hydrogen build-out and analysis of the associated supply chain needs to support an Atlantic Canadian hydrogen industry," the minister's statement reads.

The project announcement comes with a combined funding injection of $400,000 for the AHA.

"This project will help develop the supply chain needed to support both domestic and export hydrogen opportunities," said AHA Executive Director Derek Estabrook.

The election of Mark Carney will likely result in Canada maintaining its investment tax credits and support for low-carbon hydrogen and ammonia export potential, experts told S&P Global Commodity Insights.

Carney flagged green hydrogen and carbon capture in his discussions about Canada's energy future, but the election of a minority government introduced some uncertainty which may give long-term projects some pause, analysts said.

Platts, part of Commodity Insights, last assessed the costs of producing green hydrogen through alkaline electrolysis in Alberta at C$8.61/kg on May 13, including capex. Hydrogen costs through steam methane reforming without carbon capture in the region were assessed at C$1.25/kg that day, including capex.

The average cost of alkaline production in the region in April was C$4.39/kg, a 37% monthly average increase from March. The average gray hydrogen costs in April were C$1.24/kg, a 32% decrease from March.