An emerging startup from Edmonton is set to test innovative battery technology that the City of Medicine Hat anticipates will offer a cost-effective alternative to upgrading the electrical grid. Aqua-Cell Energy’s saltwater flow battery, housed in a shipping container, has been selected as one of the winners of a Medicine Hat innovation competition and will undergo a pilot run in the southeastern Alberta city starting in early 2026.
Keith Cleland, the CEO of the company, likened grid batteries to vehicle components, explaining that they can be tailored to optimize either power output or storage duration. Cleland, a native of Calgary, delved into saltwater battery research during his undergraduate studies at the University of Waterloo. This interest evolved into Aqua-Cell Energy, founded in collaboration with his current Chief Technical Officer, Ellsworth Bell, through Waterloo’s startup incubator Velocity. Upon his return to Alberta, Cleland partnered with the Northern Alberta Institute of Technology to further develop and test the technology.
The City of Medicine Hat initiated the Energy Innovation Challenge to facilitate the clean energy transition and diversify Alberta’s energy sector. This $2.4 million program supports half of the funding for six pilot projects over three years, with contributions from various entities including Prairies Economic Development Canada, Decentralized Energy Canada, and Emissions Reduction Alberta. Medicine Hat distinguishes itself as the sole Canadian city owning its energy production and distribution, operating a micro-grid independent of Alberta’s provincial power grid.
Raymond Chokelal, a senior electrical engineer in the city, highlighted the suitability of Medicine Hat as a testing ground for Aqua-Cell’s saltwater battery pilot due to its varied climatic conditions and grid integration potential. The battery technology is seen as a potential solution to address financial challenges faced by Medicine Hat’s energy business unit, including declining profitability in gas production and the need for substantial infrastructure investments.
Anouk Kendall, President of Decentralised Energy Canada, emphasized the importance of supporting entrepreneurs like Cleland and Ellsworth to enhance energy grid resilience nationwide. Aqua-Cell’s saltwater battery aligns with Medicine Hat’s renewable energy objectives and could complement initiatives such as building a large-scale solar farm and exploring carbon capture technologies. Cleland envisions the battery technology enabling consistent solar power, reducing interruptions, and ultimately lowering electricity costs for consumers.
The pilot deployment of Aqua-Cell’s saltwater battery on Medicine Hat’s electricity grid is scheduled for early 2026, with officials optimistic about its potential benefits for the city and residents.