Alberta powers up hydrogen sector with three small-scale projects as part of plan to reduce emissions
Source: Geoffrey Morgan · CALGARY HERALD · | July 23, 2020
If you want a hydrogen economy, the main and most efficient place to get that is through natural gas, says an industry observer.
Tanks of hydrogen stand near a hydrogen electrolysis plant in Germany. ALEX KRAUS/BLOOMBERG FILES
CALGARY — Alberta took tentative steps in sourcing energy from hydrogen with a string of new small-scale projects this week to develop a market in the province for the nascent and alternative energy source.
The funding is part of a wider plan to reduce the province’s large carbon footprint that includes investments in 20 emissions reductions projects that would receive a total of $58 million in funding through Emissions Reduction Alberta with the goal of driving down carbon emissions in the province by 1 million tonne by 2030, equivalent to taking 750,000 cars off the road. Hydrogen emits only water vapour when combusted and is gaining traction around the world as economies look to reduce emissions.
“Unlocking innovation across our natural gas sector will create jobs while helping industry become more efficient.”
The $10.8 million in funding for the three hydrogen projects include $5 million for a prototype and field-testing of a new method of extracting hydrogen from natural gas, and $3 million on the development of a new early-stage technology to use heat to crack methane into hydrogen and other byproducts.
In addition, Calgary-based utility and holding company ATCO Ltd. will receive $2.8 million in provincial funding for a $5.7 million project to be built next year that will blend hydrogen into natural gas streams distributed for home heating in Fort Saskatchewan, a town just outside Edmonton.
“The opportunity that hydrogen presents to Alberta and Canada can’t be understated,” said Graeme Feltham, ATCO vice-president of customer experience and initiatives. Hydrogen is already produced from natural gas in Alberta but used primarily by petrochemical facilities in the Fort Saskatchewan area.
By blending the available hydrogen into ATCO’s natural gas distribution system in the area, the hydrogen molecules can go a long way in reducing emissions. The plan is to blend ATCO’s natural gas stream in the Fort Saskatchewan area with five per cent hydrogen to start with, but there is potential to expand that to between 20 per cent and 40 per cent.