Updated September 2026
Alberta offers potential growth opportunities for emerging resources: hydrogen, geothermal energy, helium, and lithium. Building on existing commercial production and several new projects currently under construction, hydrogen production could see meaningful growth. Other emerging resources, such as geothermal energy, helium, and lithium, also show potential for development. The production forecasts for emerging resources reflect the likelihood of each project achieving its planned start date and production capacity.
Hydrogen
In 2025, total hydrogen production was estimated to be around 2.6 million tonnes. Grey hydrogen production without carbon capture, utilization, and storage (CCUS) reached about 2.2 million tonnes, while blue hydrogen production with CCUS reached 0.5 million tonnes1. The total hydrogen production is forecast to reach 4.4 million tonnes in 2035 including hydrogen facilities proposed or under development by Air Products, Linde, Suncor and ATCO.
Hydrogen supply costs (break-even prices) in Alberta vary significantly depending on the production technology and energy inputs used, resulting in distinct cost profiles for grey, blue, and green hydrogen generated through electrolysis powered by renewable electricity. Grey hydrogen currently has the lowest supply cost, ranging from $1.29 per kilogram (kg) to $1.35/kg, while blue hydrogen production ranges from $1.95/kg to $2.0/kg. Green hydrogen remains the highest-cost pathway, with supply costs ranging from $4.40/kg to $6.19/kg. The competitiveness of each hydrogen production pathway depends on future trends in natural gas markets, carbon pricing, electricity costs, and technological advancements.
1Any discrepancy is due to rounding. Grey hydrogen is created from natural gas through steam methane reforming or autothermal reforming without CCUS. Blue hydrogen is created from natural gas through steam methane reforming or autothermal reforming with CCUS. Green hydrogen is produced by splitting water using electrolysis, powered by renewable energy.
Geothermal
Geothermal electricity production in Alberta remains limited, with an estimated 1.7 gigawatt-hour (GWh) generated in 2025. However, projects such as Novus Earth’s Latitude 53 development and E2E Energy Solutions project are expected to support future growth. Overall, geothermal electricity generation in Alberta is forecast to increase by 2035, based on proposed projects.
Estimated geothermal supply costs in Alberta range from approximately $236 megawatt-hour (MWh) for a 50 MW plant to $278/MWh for a 100 MW plant. By comparison, the 2025 AESO average pool price was $43.87/MWh, suggesting geothermal power may not be economically viable under current market conditions.
Helium
In 2025, helium production was 1.2 thousand cubic metres per day from two producing wells. Insolvencies among producers led to a significant decline in output compared with 2024. Production is forecast to increase by 2035, supported by ongoing exploration activities and resource mapping efforts taken by companies such as First Helium, Global Helium, and Avanti Helium Corp in Alberta.
The supply costs vary depending on carrier gases for helium. The supply costs for helium wells with a primary carrier gas of nitrogen are estimated to range from $12 per cubic metre (m3) to $14/m3. For helium found in association with natural gas, the supply costs are estimated to range from $3/m3 to $11/m3. The lower supply cost reflects the additional revenue generated from the natural gas by-product.
Lithium
Currently, there is no commercial lithium production in Alberta. However, E3 Lithium and NeoLithica plan to begin commercial production of 14.0 thousand tonnes of lithium carbonate starting in 2028. LithiumBank's Boardwalk project is anticipated to begin commercial production in 2029. Overall, total lithium production in Alberta is forecast to rise by 2035.
