The future of hydrogen as an energy source remains obscure despite home heating projects in Alberta and Ontario

“Not all hydrogen is created equal,” says Tahra Jutt, director of the clean economy program for BC with the environmental think tank The Pembina Institute and co-author of a hydrogen primer released in July.

“If you mix the lower carbon hydrogen, you will get much better results in terms of climate benefits.”

Hydrogen has many advantages as an energy source.

When it burns, it leaves behind only water, with no carbon dioxide or other greenhouse gases. It can be used for energy-intensive applications such as trucking, shipping and steelmaking. It can be compressed for energy storage and transportation. It is non-toxic and quickly dissipates when released.

“Gray” hydrogen and its drawbacks

But there are also drawbacks. Its low ignition temperature and almost invisible flame during combustion pose potential safety concerns. Concentrated hydrogen can damage metal, requiring greater protection for piping.

The act of creating hydrogen requires energy, both to tear apart water molecules with the electrolysis method and to break down natural gas molecules through thermal processes that themselves create greenhouse gases.

Almost all of the hydrogen created in Canada today is considered “gray,” created by burning fossil fuels and then used in industrial processes, such as oil refining or fertilizer production. Pembina estimates that it costs between 91 cents and $ 1.42 per kilogram.

If carbon dioxide and other pollutants from gray hydrogen production are captured and stored, it becomes “blue” hydrogen, but the cost jumps between $ 1.34 and $ 1.85 per kilogram.

“Green” hydrogen is separated from water using only renewable electricity, and while it is the most environmentally friendly, it is also the most expensive between $ 3 and $ 5 per kilogram, according to Pembina.

“The economics, in our view, for blue and green are in question right now, but support will increase,” said Al Monaco, CEO of pipeline company Enbridge Inc., in a recent conference call, echoing to the cautious stance taken by many industry leaders.

“Costs are bound to go down, then [it’s] another good opportunity for us to capitalize on our infrastructure “.

Projects underway at Fort Saskatchewan, Markham

Subsidiaries of Enbridge and Atco Ltd. are embarking on plans to inject hydrogen into the natural gas stream leading to domestic furnaces and water heaters in Markham and Fort Saskatchewan.

Electricity cannot be stored as is, but at the Enbridge power-to-gas plant in Markham, it is used to create hydrogen from water which can be stored until it is eventually turned into electricity with the Enbridge’s 2.5 megawatt hydrogen fuel cell when needed.

Markham’s hydrogen is considered green because it is produced with intermittent renewable electricity. The facility opened in 2018 after investments of $ 4.5 million from an Enbridge partnership and $ 4 million from the federal government. Its operation is supported by a three-year contract from the Ontario Electricity System Operator to supply excess renewable energy.

The system works to equalize energy availability, but when more hydrogen is created than can be stored, it needs to be discharged, says Cynthia Hansen, president of gas distribution and storage for Enbridge.

A partial solution is to merge the approximately two percent surplus into the local natural gas flow to reduce overall GHG emissions, a $ 5.2 million project (with $ 221,000 from the federal government) is expected to start for approximately 3,600 customers. starting next summer.

From gray to blue

Atco, meanwhile, is building a $ 6 million hydrogen blending project, backed by $ 2.8 million in Alberta provincial grants and expected to be operational in early 2022.

It will provide about five percent of hydrogen in the gas stream to some 5,000 homes in Fort Saskatchewan, a small town just northeast of Edmonton, with hydrogen from an unnamed local supplier.

“When it starts, it will be gray, so it will turn blue as the supply in the area builds up,” said Jason Sharpe, Atco’s natural gas general manager, estimating it will take two to three years for hydrogen. blue to become available.

The Fort Saskatchewan area, with its refineries and petrochemical plants, is the zero point for carbon capture and storage in Alberta.

Shell Canada’s Quest project, which opened in 2015, has injected more than five million tons of carbon dioxide into underground storage since its tar sands upgrade.

The recently completed Alberta Carbon Trunk Line is a pipeline system designed to collect CO2 from industrial sites in the region and bring it to mature oil fields where its permanent storage also results in improved oil recovery.

The global hydrogen market could easily triple from current levels of around $ 200 billion annually by 2050, as countries adopt its use as a decarbonization strategy, according to GLJ, a leading Calgary energy consultancy. .

Canada is well positioned to become an exporter in this growing market due to its current and potential production, GLJ said.

In search of “government signals”

Jutt di Pembina, however, says the use of hydrogen should be targeted. While it may make sense to use it for home heating in some regions, such an application doesn’t necessarily make sense in BC, where energy from renewable hydropower sources is potentially more environmentally friendly.

Much is riding on the federal and provincial government promised regulatory, strategic and financial commitments for hydrogen, as well as other alternative fuels that can help Canada reach its net zero greenhouse gas emissions goal by 2050, he added.

“Companies will do what is right for them economically, but I think everyone is looking to the government for signs that it is good to invest in these things – hydrogen is one of the many fuels we will need to achieve our goals. for 2050 “.