Industry & Manufacturing

Southeast Alberta’s established industrial cluster.

Located in Canada’s energy province of Alberta, the city of Medicine Hat is home to an established industrial cluster. With a population of ~68,000 people, Medicine Hat offers a skilled labour force with industrial expertise.

The City of Medicine Hat has a rich history in the energy sector and is known for being a change agent for energy transition. We have over 125 years of quality resource management and look forward to a future of low-emission energy provision while maintaining quality of life and economic vitality.

Whether its low-carbon hydrogen or conventional chemical products, Medicine Hat’s energy industry is growing and diversifying. The future of Southeast Alberta industrials is bright. 

  • Petrochemicals capacity includes methanol and nitrogen (fertilizer, ammonia, urea)
  • Alberta accounts for 60% of Canadian natural gas production
  • Alberta’s established petrochemical industry capitalizes on low-cost feedstocks

“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.”

Bradley Maynes
Resource Advisor

Sector Spotlight

Alberta's general corporate income tax rate is 8%, the lowest among Canadian provinces, while the small business tax rate is 2%.

The City of Medicine Hat owns and operates all its utilities, allowing for cost competitive tax and utility rates.

Home to the most engineers per capita in Canada, Alberta offers a young, diverse, and educated workforce with expertise in the petrochemicals sector.

Energy Evolution

Clean Technology Opportunities in Medicine Hat, Alberta

At the crossroads of Canada’s traditional energy industry and its clean technology future, Medicine Hat, Alberta is emerging as a regional leader in industrial decarbonization, renewable energy, and sustainable manufacturing – all without sacrificing our oil and gas sectors.

Home both the largest methanol and ammonia production complexes in Canada, along with established carbon black and tire manufacturing, Medicine Hat is one of Alberta’s premier petrochemical and industrial clusters. This extends into low-carbon, sustainable, and renewable industries as well, as the city establishes its position at the forefront of Canada’s energy transition.

With more than 125 years of expertise in energy and resource management, Medicine Hat continues to evolve by leveraging local strengths in engineering, utilities, and clean technology to drive sustainable growth and investment.

  • Petrochemicals capacity includes methanol and nitrogen (fertilizer, ammonia, urea)
  • Alberta accounts for 60% of Canadian natural gas production
  • Alberta’s established petrochemical industry capitalizes on low-cost feedstocks

Projects

The City of Medicine Hat is actively working towards facilitating and providing optionality for existing and future businesses for decarbonization and alternate energy sources.

Project Clear Horizon

Carbon Capture and Storage (CCS) Hub facilitated by the City of Medicine Hat and local industry. It is anticipated to permanently sequester up to 3 Mtpa of CO2. 

Southeast Alberta Hydrogen Hub

Regional initiative facilitated by the City of Medicine Hat, southeast Alberta municipalities, agencies and private industry, aiming to be one of the world’s lowest cost producers or low carbon hydrogen.

Competitive Advantages

World-Class Energy Resources

Southern Alberta offers some of the strongest wind and solar resources in Canada:

  • 2,544 hours of sunshine and 330+ sunny days per year (Environment Canada)
  • Direct Normal Irradiance (DNI): 5.1, ideal for solar generation
  • Consistent, high-velocity winds driven by Chinook systems and Rocky Mountain geography
  • Proximity to 80% of Canada’s crude oil reserves

These natural advantages have attracted significant renewable energy investment and make Medicine Hat a prime location for solar, wind, and battery storage innovation and development, and a continued presence within the petrochemical industry.

 

Alberta’s deregulated electricity market also encourages private investment and innovation:

  • Developers can directly connect projects to the provincial grid and compete for market share.
  • The Technology Innovation and Emissions Reduction (TIER) system enables renewable energy developers to generate and sell emission reduction credits, creating dual revenue streams (power + credits).
  • This market structure has helped Southern Alberta become Canada’s primary destination for renewable energy investment.

Major Projects and Future Growth

Saamis Solar

One of Canada’s most ambitious urban renewable energy projects, Saamis Solar will transform a 1,600-acre brownfield site in north Medicine Hat into Canada’s largest urban solar farm.

  • Phase 1 (75 MW) approved by the Alberta Utilities Commission (AUC) in 2024
  • Ownership transferred to the City of Medicine Hat in 2025
  • Future expansion up to 325 MW planned, subject to feasibility and grid integration
  • Expected to provide significant local economic and environmental benefits

Learn more about Saamis Solar

Clear Horizon (CCUS Hub)

Project Clear Horizon represents Medicine Hat’s leadership in industrial decarbonization.
Originally developed by the City to support low-carbon energy generation and petrochemical production, the project has been taken over by Imperial Oil Low Carbon Solutions and is advancing through front-end engineering design (FEED).

Once operational, Clear Horizon could capture and store up to 3 million tonnes of CO₂ per year, providing regional decarbonization options for industries across Southeast Alberta.

More on Medicine Hat’s Carbon Capture and Storage initiatives

 

Skilled Workforce & Local Leadership

Medicine Hat and Southeast Alberta offer a highly skilled industrial labour force, with strong ties to Alberta’s engineering, energy, and manufacturing sectors.
Nearby institutions, including Medicine Hat College, the University of Lethbridge, SAIT, and the University of Calgary, produce a steady pipeline of engineering, technology, and trades professionals.

The City of Medicine Hat also owns and operates its own electric and gas utilities, enabling flexible and cost-competitive service for industry and innovation in distributed and decentralized energy systems.

Local partners like APEX Southeast Alberta Regional Innovation Network further strengthen the region’s innovation ecosystem.

You're in Good Company

The region continues to attract investment from wind, solar, hydrogen, and CCUS developers building the next generation of Alberta’s industrial base: Browse the Southeast Alberta Chamber Energy Member Directory

A Bright Future

From petrochemicals and hydrogen to solar, wind, and carbon capture, Medicine Hat is leading Alberta’s Energy Evolution.
Our city combines world-class resources, skilled talent, low costs, and a pro-business utility model—making it one of Canada’s most compelling locations for clean technology investment.

Let’s build the future of energy together.
Contact Economic Development Medicine Hat to explore opportunities.