Jason Kenney unveils Hydrogen roadmap -- The Canadian Press
By The Canadian Press
Nov 6, 2021 | 2:29 PM
EDMONTON, AB. — The Alberta government has released its road map to reach a goal of becoming a world leader in hydrogen exports by the end of the decade.
Premier Jason Kenney says Alberta is well-positioned with its existing energy infrastructure to become a global supplier of choice for hydrogen.
And he calls it a “game changer” in the climate change fight, given that hydrogen emits no greenhouse gases when burned.
He says the global hydrogen market is expected to become worth up to $2.5 trillion within the next 30 years.
The plan calls for catching up on clean hydrogen technologies in the short term before moving to growth and commercialization in the long term.
Alberta is already the largest hydrogen producer in Canada at 2.4 million tonnes per year.
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The Alberta government has released its road map to reach a goal of becoming a world leader in hydrogen exports by the end of the decade.
Premier Jason Kenney says Alberta is well-positioned with its existing energy infrastructure to become a global supplier of choice for hydrogen.
And he calls it a “game changer” in the climate change fight, given that hydrogen emits no greenhouse gases when burned.
He says the global hydrogen market is expected to become worth up to $2.5 trillion within the next 30 years.
The plan calls for catching up on clean hydrogen technologies in the short term before moving to growth and commercialization in the long term.
Alberta is already the largest hydrogen producer in Canada at 2.4 million tonnes per year.
Dale Nally, the associate minister for natural gas and electricity, compares the hydrogen revolution to the breakthrough energy boom brought on by the oilsands.
“Hydrogen can absolutely be a game changer for our province on many levels,” Nally told a news conference Friday.
“We have the natural advantages to make hydrogen that is both clean and affordable.”
Along with export potential, the report identifies four leading domestic markets for clean hydrogen, which is hydrogen produced with minimal greenhouse gas emissions.
#Alberta government unveils road map with goal of becoming #hydrogen export superpower. #ABPoli
They include home and business heating, power generation, transportation and hydrogen for industrial use.
Opposition NDP critic Kathleen Ganley says the United Conservative government's plan builds on proposals from the former NDP government but lacks concrete goals, objectives and details.
“This strategy lacks detail and thoughtfulness that would be required to actually attract investment,” she said.
“It sets targets, but it doesn’t actually provide a pathway to achieve those targets.
“It doesn’t even give a commitment to how much investment they are willing to contribute at the provincial level.”
The government said the plan will be revisited in 2025.
This report by The Canadian Press was first published Nov. 5, 2021.
'This is an opportunity for Alberta to create generational wealth for the province. We have an opportunity to be a leader in clean, affordable energy,' said Associate Natural Gas Minister Dale Nally
Author of the article: Chris Varcoe • Calgary Herald
Publishing date: Nov 05, 2021 •
If you want to know how big the potential prize is for Alberta to grow its hydrogen industry, Associate Natural Gas Minister Dale Nally is quick to provide the answer.
Think of the oilsands, he says.
Nally’s new Alberta Hydrogen Roadmap, to be released Friday, details a number of ways to measure success in the province for the emerging sector under a “transformative” future outlook.
It projects tens of thousands of jobs created during the construction of new projects, Alberta’s GHG emissions falling by five per cent and more than $30 billion in capital investment being attracted by 2030.
“For me, that is the minimum. I think we could do well more than that,” Nally said.
“This is an opportunity for Alberta to create generational wealth for the province. We have an opportunity to be a leader in clean, affordable energy.”
There is no denying the keen interest in developing hydrogen in a world acutely focused on decarbonizing energy systems. Hydrogen, which doesn’t directly emit carbon dioxide when used, is seen as a prime energy opportunity for the province.
Several proposed projects provide a tantalizing hint of what could be in store in the years ahead.
In May, ATCO and Suncor Energy announced plans for a project that would produce 300,000 tonnes of hydrogen annually. Air Products rolled out a proposed $1.3-billion net-zero hydrogen production and liquefaction complex in Edmonton the following month.
In August, Petronas and Japan-based Itochu unveiled a development that could see the companies build a $1.3-billion facility in Alberta that would export ammonia as a hydrogen carrier to markets in Asia.
Just last month, pipeline giant TC Energy announced it will work with electric truck manufacturer Nikola to co-develop and operate low-carbon hydrogen production hubs in North America.
More announcements are coming
Nally compares the potential for Alberta’s hydrogen sector to the opportunity presented to the Lougheed government in the 1970s by the oilsands industry.
“It will not replace the oilsands, but I absolutely believe it could be as impactful as the oilsands, in terms of investment, in terms of jobs, in terms of royalties,” said the Morinville-St. Albert MLA.
The provincial blueprint, which Nally discussed Thursday at a net-zero emissions conference held by Petroleum Technology Alliance Canada, aims to leverage the existing advantages Alberta already has in this area.
Canada is one of the world’s largest manufacturers of hydrogen. Alberta produces about 2.4 million tonnes of hydrogen annually, primarily for industrial purposes.
It’s estimated hydrogen could provide up to 24 per cent of global energy demand by 2050 as the world pivots towards a net-zero emissions future.
The roadmap describes Alberta’s hydrogen ambitions in domestic markets — growing in transportation, residential and commercial heating, power generation and storage, as well as in industrial applications.
It has even bigger aspirations for the export market. “With an estimated global market of $2.5 trillion by 2050, hydrogen can be the next great energy opportunity for our province,” Nally told the conference.
The Transition Accelerator, a non-profit group based in Calgary that examines the shift to net-zero energy, has estimated hydrogen could create an estimated $100-billion-a-year market for Canada.
Alberta also has existing expertise in the energy sector, massive natural gas reserves and the geology necessary for carbon capture, utilization and storage (CCUS) projects to sequester emissions created to make so-called blue hydrogen.
(Green hydrogen is produced from water in a process powered by renewable or low-carbon electricity.)
“We are agnostic to the colour of hydrogen, as long as it’s clean hydrogen,” Nally said at the conference. “It will be industry that decides the colour of the hydrogen.”
The minister said one key challenge to overcome will be the cost to produce hydrogen, although the International Energy Agency said recently it’s expected to fall over time as the sector gains economies of scale.
The blueprint identifies several policy pillars for Alberta to pursue.
These include building new demand for hydrogen, enabling cost-effective CCUS projects needed to store emissions, as well as de-risking early investments. The study also focuses on promoting technology, ensuring a modern regulatory framework is in place and pursuing exports.
If hydrogen is widely integrated into Alberta’s energy system, the province could cut its emissions by 14 megatonnes annually by 2030, the blueprint states
A separate report released Thursday by the University of Calgary’s School of Public Policy says hydrogen and its derivatives can play a key role in some emissions-intensive sectors, such as steel, chemical and clean fuel production, and long-haul transportation.
Hydrogen has the potential for “broad participation” across the country, thanks to the ability to produce hydrogen from natural gas and from clean electricity, the report says.
Another study by the school notes Alberta also has advantages that make hydrogen a feasible way to decarbonize the electricity grid.
Business Council of Alberta president Adam Legge said the province has many strengths to capitalize on, although there are issues to address, such as ensuring the industry has enough skilled workers, providing investment certainty and approving infrastructure needed to get product to market.
Last December, Ottawa put out its own blueprint that aims to establish Canada as a global supplier of hydrogen. Having the federal and provincial governments headed in the same direction is important, Legge added.
“Everybody recognizes there is a huge potential in hydrogen, but we do have to make sure we get some of the key pieces lined up before we really recognize the mass potential,” Legge said.
At the PTAC conference, David Layzell with the Transition Accelerator said another key challenge is to ensure adequate demand for hydrogen is in place as the industry grows supply.
But he agrees Alberta’s prospects for hydrogen are significant because the world needs to embrace major changes to develop net-zero energy sources.
“It is as big an opportunity for Alberta today as perhaps 50 years ago when Peter Lougheed was looking at the oilsands,” Layzell said in an interview.
“We have got to make it work — and we have to demonstrate that it can work.”
Chris Varcoe is a Calgary Herald columnist.
cvarcoe@postmedia.com
TWO 'MAYBE' TECHS
Alberta bullish on hydrogen strategy that relies heavily on carbon capture technology
Province wants to export hydrogen by 2030
The Alberta government wants the province to become a hydrogen powerhouse by 2030, piggybacking on the natural gas industry to export hydrogen.
The Alberta Hydrogen Roadmap, released Friday, depends heavily on the use of carbon capture, utilization and storage (CCUS) in its early stages to reduce greenhouse gas emissions and aim for Canada's net-zero goals.
The approach also banks on the federal government helping to fund some of the pricey up-front costs of scaling up CCUS, Premier Jason Kenney said in a news conference Friday.
"Hydrogen gives the world an exciting new tool to build a stronger, more reliable low-emission energy future," Kenney said. "And Alberta is uniquely positioned to become a dominant global player in this burgeoning new technology."
The report paints a picture of a future where hydrogen is integrated into the province's electricity and heating systems, fuels the trucking sector and public transit, used in industrial processes, and exported internationally.
Although the strategy cites $30 billion in capital investment by 2030 as a goal, the government made no specific funding commitments. It points to existing policies, such as the province's lower corporate tax rate, a petrochemical incentives program and loan guarantees for Indigenous-run corporations as carrots to dangle for investors.
Kenney says the plan will be a key driver of economic recovery, create thousands of jobs and position the province to "write a new chapter in Alberta's rich story as a global energy supplier."
Premier Jason Kenney touts hydrogen as a tool in Alberta's stronger, more reliable, low emission energy future with the Alberta Hydrogen Roadmap. 1:32
The report does note the technology to transport hydrogen long distances cheaply and efficiently is still under development.
The strategy lists an annual greenhouse gas emissions reduction of 14 megatonnes per year by 2030 by integrating hydrogen into industrial processes.
In 2019, Alberta emitted nearly 276 megatonnes of greenhouse gases, half of which came from oil and gas.
The report says Alberta would have to rely at first on more emissions-intensive processes of hydrogen production, using natural gas. In time, it could generate more so-called "green" hydrogen using renewable energy to split water molecules.
'Green' hydrogen challenges
Some environmentalists are skeptical of hydrogen produced from natural gas, which is called blue or grey hydrogen, depending how it's made.
Even if the resulting carbon dioxide byproduct is pumped and stored underground, capturing all those emissions is difficult. And the upstream production of the natural gas can be problematic, resulting in leaks of methane, which is a much more potent greenhouse gas than carbon dioxide.
Nina Lothian, Pembina Institute director responsible for fossil fuels, says Alberta's hydrogen strategy is promising, but should emphasize the methods of production with the lowest emissions intensities.
Developing better technology with lower environmental footprints will require public funding to help offset the business risks, she said.
Lothian said Alberta also needs a more comprehensive climate plan that sets provincial emissions targets and creates more local demand for hydrogen, rather than relying on export markets.
Although hydrogen produced from natural gas is more emissions intensive, University of Alberta mechanical engineering Prof. Amit Kumar says investing in blue hydrogen would bring the province closer to making green hydrogen production viable. Transportation and storage methods can be re-used no matter how the gas is produced, he said.
For now, the production costs of green hydrogen are much higher than using natural gas, he said.
NDP energy critic Kathleen Ganley said the United Conservative Party government was sluggish to embrace hydrogen, and that could have already sent investors looking elsewhere.
The Opposition published a hydrogen strategy a year ago that proposes studying the viability of a hydrogen export pipeline and offering royalty incentives to producers.
With files from Andreane Williams, Michelle Bellefontaine and Mirna Djukic
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