Alberta has been producing hydrogen for more than 50 years and is not only the largest hydrogen producer in Canada, it is also one of the largest hydrogen producers in the world.
Hydrogen has huge potential to decarbonize hard-to-abate sectors as described in the Alberta Hydrogen Roadmap report in 2022. which states- “Hydrogen could provide up to 24 percent of global energy demand by 2050, growing to almost 700 million tonnes per year. This represents an almost eight-fold increase from the current global consumption of 90 million tonnes in 2020.”
The focus of the report was to “ensure that Alberta takes a measured approach in clean hydrogen development that drives gradual transition from pilot and demonstration stages to scale up while playing a role in ensuring public safety and regulatory harmonization across the supply chain.”
While the report intends to focus on big projects for markets that provide opportunities to immediately deploy hydrogen into the provincial economy, there is an advantage to a focus on specific, local energy needs that can deliver immediate and sustainable decarbonization benefits.
Smaller, more agile projects can deliver decarbonization and affordability wins today and not years out- something that is typical of large-scale plants.
One emerging, agile project is H-GEN Initiatives new Calgary Hydrogen Production Hub (CHP Hub)- a project that delivers affordable decarbonization along with Indigenous economic growth and participation as they are partnered with Apeiron Resources -an Indigenous majority owned corporation.
The CHP Hub will provide a low-cost, low-carbon intensity source of hydrogen fuel to Western Canada, along with a local solution-the first hydrogen refuelling station in Calgary.
CHP Hub’s hydrogen supply model is designed to produce fuel cell grade (99.999% pure) hydrogen from natural gas, water and electricity using steam methane reformation technology, transported in gaseous form, and then dispensed using compressed gaseous hydrogen. The production facility will provide an opportunity for companies based in Alberta to accelerate the achievement of their decarbonization and sustainability objectives by gaining access to locally produced hydrogen and also provide Calgary’s first hydrogen refueling station. The facility is aligned with Canada’s Clean Fuel Standard (CFS) with its low Carbon Intensity (CI) value.
The CI value is at or above comparable hydrogen production facilities in the green and blue hydrogen space, according to Steven Tofan, CEO of H-GEN Initiatives.
The CHP Hub will also include an Indigenous Training Centre – providing hands-on training in hydrogen production, storage, distribution and transportation, and dispensing as well as valuable business mentoring. Tofan believes it is the first of its kind in North America.
The CHP Hub will benefit not only the Indigenous Peoples of the Metis Nation of Alberta Region 3 but will also bring Albertans a way to decarbonize their future with near-term solutions. “said Steven Tofan, CEO of H-GEN Initiatives.
He sees the project as bringing Albertans a way to decarbonize their future using practical and safe methodologies applied to decarbonize diesel used in commercial trucking.
“We can finally provide a clean energy solution for the proactive people and companies wanting to lead the energy transition. This hydrogen hub will be a significant milestone in the energy transition.”
Hydrogen is increasingly viewed as a great alternative fuel for the logistics side of the market as hydrogen can easily be blended into existing diesel engines with an existing dual fuel technology. It also overcomes the temperature and range issues that battery electric commercial vehicles can experience.
One issue with electric vehicle technology is the time spent idle while batteries charge. Even a 30-minute top-up charge would deliver less than 100%- most likely 80% of the full range. This would necessitate more charging stops. Since on-time deliveries are crucial to the logistics market, light-commercial vehicles (LCVs) and heavy goods vehicles (HGVs) can ill afford idle time while batteries charge. In addition, the number of battery cells needed to increase the distance a vehicle can travel increases the weight the vehicle carries and reduces the amount of cargo it can carry.
By locating the production plant close to Calgary, it will be in close proximity to major demand points which allow for the hydrogen to be produced in a gaseous form, thus avoiding costly liquification processes.
The new CHP production hub will afford Western Canadian companies the opportunity to further their decarbonization and sustainability objectives by gaining access to a locally produced, low-cost supply of hydrogen in shorter timelines than the larger projects that are currently contemplated.
Revenues for Indigenous Nations and their Governments will be generated in short timelines creating sustainable socio-economic benefits that go directly back to Indigenous Nations, governments, and citizens.
“The Apeiron philosophy has always been to prioritize opportunities that create source revenues for Indigenous Nations and their Governments.” Kirk Poitras, President and Founder of Apeiron Resources says. “By collaborating and cooperating with our trusted partners we can continue to help facilitate skills development, training, and experience-building within communities.”
Larger projects have longer timelines with some expected to be in operation in 2028 or later. An accessibly scaled project like H-GEN’s CHP hub can provide quicker results while having the agility to expand nationally.
According to Larry Buzan, President of H-GEN Initiatives, “The entirety of our joint focus to date has been realized in our agreement with Apeiron. It will drive the business of real hydrogen supply in the near-term and provide clean fuel adoption choices to Albertan and Western Canadian companies and beyond.”
Maureen McCall is an energy professional who writes on issues affecting the energy industry.