Feasibility study demonstrates Calgary Region’s potential as a major hydrogen hub

Alberta “superbly positioned” to take a leadership role in growing sector

Calgary, AB – The Calgary region has what is needed to establish a major hub for the emerging hydrogen economy, concludes the report Towards A Fuel Hydrogen Economy in the Calgary Region: A Feasibility Study.

The report authored by The Transition Accelerator for the Calgary Region Hydrogen Task Force says Alberta is “superbly positioned” to be a leader in the hydrogen economy. It recommends establishing a hydrogen hub in the Calgary region to build new value chains to produce, transport and use hydrogen as a fuel.

The goal of the study was to assess the potential for the Calgary region to participate and benefit from the emerging fuel hydrogen economy. The study identifies a $4.6 billion per year market potential for fuel hydrogen production that could be used in the Calgary region. It also encourages the development of hydrogen as part of the region’s pathway to a net-zero emission energy system.

The report also recommends a Calgary region hub links with the Edmonton Region Hydrogen Hub and initiatives in other population centres across Western Canada to create hydrogen corridors that support heavy duty road and rail transport.

Hydrogen is an energy-rich gas that can be produced with low greenhouse gas (GHG) emissions for use in heavy-duty transportation, as well as heat and power generation. It is produced through various methods including, natural gas reformation with carbon capture and storage, or water electrolysis using renewable electricity.

Global market expansion for lower emission energy carriers like hydrogen are critical to meet national net-zero targets by 2050, a priority of the economic strategy, Calgary in the New Economy, and Resilient Calgary: Council’s Strategic Direction 2023-2026.

The report concludes that the Calgary region has substantial potential markets for fuel hydrogen as well as the potential to produce and transport low GHG hydrogen to points of demand.

The Task Force members include: Calgary Economic DevelopmentBighorn EnergySpectrumH2Rocky Mountain GTLCanadian Pacific RailwayATCONikola Corporation2G Energy and Calgary Airport Authority.

Task Force members represent all sectors of the value chain (production, transportation and end-use) critical to establishing a viable hydrogen economy. The Feasibility Study is the first of four steps to create a regional hydrogen strategy.

It included eight recommendations:

  1. Build a consortium around a shared vision for a fuel hydrogen future.
  2. Partner with the Edmonton Regional Hydrogen HUB.
  3. Connect with CP Rail, Calgary Transit and Alberta Motor Transport Association to support hydrogen vehicle trials.
  4. Focus on smaller-scale, distributed hydrogen production to serve the fuel market.
  5. Support carbon capture and storage for blue hydrogen production.
  6. Support renewable generation and green hydrogen production.
  7. Deploy hydrogen for heat and power generation.
  8. Engage the academic community.

 

Read the Feasibility Study along with the Hydrogen Strategy for CanadaAlberta Energy Transition Study and Alberta Hydrogen Roadmap.

Bringing the Hydrogen Economy Into Focus

Three new reports show Canada has the skilled and ready workforce to support a hydrogen economy, the CO2 storage capacity to make low-carbon hydrogen production viable, and the potential to build out value chains that will serve our short and long-term goals.

This month, the Transition Accelerator released three reports that bring a functioning hydrogen economy closer to reality.

Building on the shared vision behind the Edmonton Region Hydrogen HUB, these reports examine three essential aspects of our future hydrogen economy. The first, Assessing the Workforce Required to Advance Canada’s Hydrogen Economy, looks at Canada’s current hydrogen workforce and outlines the roles we’ll need to support the emerging H2 value chain. The second, Techno-Economics of a New Hydrogen Value Chain Supporting Heavy-Duty Transport, compares a range of potential supply chains to determine the most effective ways to distribute hydrogen widely and affordably, with a focus on heavy-duty trucking. And the third, Review of Carbon-Dioxide Storage Potential in Western Canada: Blue Hydrogen Roadmap to 2050, outlines Western Canada’s tremendous potential for carbon capture, utilization and storage (CCUS), which will play an integral role in Canada meeting its target of net zero carbon emissions by 2050.

Individually, each report is a valuable tool for policymakers and key stakeholders in industry, government, and beyond. Taken together, this hydrogen deep-dive shows where we are on the road to a hydrogen economy, and how far we still need to go. By clarifying economic opportunities and identifying knowledge gaps, this work further highlights that hydrogen as an energy carrier is part of a compelling and credible pathway to a zero-emission future.

Assessing the Workforce Required to Advance Canada’s Hydrogen Economy
Vol. 4, Iss. 4. July 2022
Pat Hufnagel-Smith

To promote a just transition into a zero-emission future, we need to understand the workforce required for a hydrogen economy. What jobs will be needed in the hydrogen value chain? What skills will be required, and how do we ensure that training opportunities are widely available?

Growing the labour force for an emerging technology may appear daunting, but according to report author Pat Hufnagel-Smith, Canada is well positioned to meet this challenge. We already have a highly skilled and ready workforce that knows how to produce, handle, and use hydrogen safely. What’s more, we can build on this head-start through targeted training, using micro-credentials, bootcamps and work-integrated learning to bolster our skilled workforce.

Still, the transition will involve a number of risks, including the need for more industry standards, a lack of diverse talent pools from which to hire, and uncertainty around the exact structure the hydrogen economy will take. If those risks are addressed with planning and forethought, though, the report makes clear that the shift to a hydrogen economy has the potential to create desirable, well-paying jobs that leverage Canada’s existing labour force.

Hufnagel-Smith has also developed a Hydrogen Workforce Assessment Toolproviding a detailed breakdown of the occupations needed for the low-carbon hydrogen economy. This tool includes core occupations, qualifications, and requirements unique to the demands of working with hydrogenallowing users to determine a HUB’s specific talent needs, opportunities and risks based on its unique value chain components.

Techno-Economics of a New Hydrogen Value Chain Supporting Heavy-Duty Transport

Vol. 4, Iss. 5. July 2022
Mohd Adnan Khan, PhD; Catherine MacKinnon, MSc. P.Eng; Cameron Young, MSc, P.Eng; David B. Layzell, PhD, FRSC

Developing the infrastructure to distribute hydrogen fuel widely and affordably in time to meet Canada’s climate obligations won’t happen by accident. According to the analysis in our second report, Creating a hydrogen value chain will require the rapid, coordinated scaling up of both supply and demand, alongside significant investment in infrastructure, innovation, and knowledge sharing. While the complexity of this task is undeniable, smart policies and concerted effort on behalf of industry, government, and consumers can deliver results.

In the “Techno-Economics of a New Hydrogen Value Chain” report, Dr. Adnan Kahn, Energy Systems Engineer with the Transition Accelerator, explores the costs of not only producing low-carbon hydrogen, but transporting it from its site of production to make it available for fueling heavy-duty vehicles at 5, 40 or 300 km from where it is produced. In assessing the production, processing, delivery and fueling costs for such value chains, the report highlights the importance of ‘scale’ and ‘coordination’ of supply and demand to keep costs low.

The report finds that the hydrogen value chain is highly capital intensive, with 45-65% of the total cost per kilogram of hydrogen coming from capital expenditure. That high capital cost means scale is critical and communities and industries wishing to transition to a hydrogen economy must “go big or go home”. With each fueling station needing to deliver 2 or more tonnes of hydrogen per day to achieve economic viability, many dozens to hundreds of hydrogen-using vehicles must visit the station every day.

For example, each station will need the support of about 40 trucks, each driving 650km and using 50 kg hydrogen/day. However, most trucks driving such distances are involved in intercity transport, so two fueling stations and 80 trucks are needed, with one fueling station at each end of the corridor.

The report’s findings are already being incorporated into the development of strategies for deploying hydrogen hubs and corridors that can achieve economic viability without ongoing public investment. Once established, the hubs and corridors can grow and eventually connect with other hubs and corridors at minimal cost, delivering both economic and environmental benefits.

Review of Carbon-Dioxide Storage Potential in Western Canada: Blue Hydrogen Roadmap to 2050
Vol. 4, Iss. 6. August 2022
Richard Hares, P.Eng, MSc; Sean McCoy, PhD; David B. Layzell, PhD, FRSC

The global interest in hydrogen as a zero-emission energy carrier has led to renewed interest in carbon capture, utilization, and storage (CCUS), which allows relatively low-cost “blue” hydrogen to be made by reforming natural gas and preventing the resulting CO2 from being released to the atmosphere. The Canadian federal and provincial governments have identified CCUS as a major component of their strategies to reduce greenhouse gas GHG emissions, and meet the 2050 targets that were identified in the federal Hydrogen Strategy for Canada. The large-scale production and domestic use of blue hydrogen as a fuel would create significant demand for CCUS, potentially requiring about 200 megatonnes of CO2 storage per year for many decades.

Our third report this month combs through decades of research to determine Western Canada’s carbon storage potential, reviewing storage projects, identifying knowledge gaps, and suggesting strategies for future CCUS deployment. The authors, Richard Hares, Sean McCoy and David Layzell, confirm that Western Canada has the ideal geology for CCUS—theoretically enough to contain several centuries of projected blue-hydrogen production emissions for the region.

However, uncertainty remains around the specifics for these storage resources, and what proportion is economically viable. The report notes that future CCUS deployment may be caught in a “chicken or the egg” situation, as projects that could reduce uncertainty will require significant investment, but attracting investment will depend on reducing uncertainty.

Among its recommendations, the report suggests that CO2 storage projects must be accelerated, with a focus on areas that have already been partially de-risked through past studies or are lower-risk due to the presence of existing infrastructure. Initiatives like the Alberta government’s recent $40 million investment in CCUS pilots are promising, and a combination of standardized assessment tools, public sharing of data related to CO2 storage studies and projects, and the development of a complete CCUS strategy supporting blue hydrogen production can help further advance this technology.

Credible, compelling, and capable

Reaching Canada’s 2050 emissions targets will require more than just reducing emissions. To act efficiently and effectively, we need to be sure the pathways we pursue towards decarbonization are credible, compelling, and capable of achieving our net-zero goals. The vision of a hydrogen economy in Western Canada—developed in collaboration with industry, government, Indigenous communities, academia, and other stakeholders—has the potential to meet those requirements. The Transition Accelerator’s latest reports are a major step towards advancing that vision.

The opportunity here is clear: Canada has the skilled and ready workforce to support a hydrogen economy, the CO2 storage capacity to make low-carbon hydrogen production viable, and the potential to build out effective value chains that will serve our short and long-term goals. But having the right ingredients isn’t enough to guarantee the right outcome. Seizing this opportunity will take coordinated strategic planning from a vast range of stakeholders—and these three reports can provide decision-makers with the tools they need to create practical transition pathways to a hydrogen economy that will drive prosperity in a net zero future.

Towards a Western Hydrogen Network

With the recent announcement that a Southeast Alberta Hydrogen Task Force has been launched to establish a framework to implement a hydrogen economy in Southeast Alberta, Alberta’s low-carbon hydrogen economy is continuing to gain strong momentum. This announcement positions the region to potentially become Alberta’s second hydrogen HUB after its foundation report and other milestones are completed. Of course, The Edmonton Region Hydrogen HUB was launched earlier this year and is already working to break the vicious cycle of insufficient hydrogen supply and demand and position the region to become a world-leading producer, user and exporter of this low-carbon fuel the world wants.

Canada has many strengths that can make it a hydrogen superpower. It is one of the lowest cost places to make low-carbon hydrogen in the world, and Alberta’s energy workers in particular already have the skills and expertise needed to lead the way in this emerging energy field. But a Canada-wide hydrogen economy won’t emerge unless the right conditions are set and additional hydrogen HUBs are created and linked across the country. That’s why we’re working to facilitate the next phase of development: a western hydrogen network.

How are Hydrogen HUBs created?
In accordance with our research and the federal government’s Hydrogen Strategy for Canada, we have been working with local stakeholders in regions across Canada, including multiple levels of government, First Nations and industry representatives, to develop regional hydrogen HUBs. The Transition Accelerator’s four stage process for launching hydrogen HUBs is as follows below.

1. Undertake a Foundation Report

Partner with local industry, government, and academics to understand the unique opportunities of the region. Document the regional assets that could be harnessed in a transition to a hydrogen economy. This would include an evaluation of the following:

  • Production potential – identify the ability to produce low-carbon hydrogen and use byproduct hydrogen as a fuel source
  • Demand Potential – identify sources of demand from a wide range of sectors such as transportation fleets owed by governments or private companies, residential and commercial heat, and industrial use
  • Transportation opportunities – how to move hydrogen to where it is needed, such as through existing or unused pipeline infrastructure
  • Funding opportunities – opportunities from various levels of government, the private sector and philanthropic source

 

2. Develop shared visions for possible transition pathways
Build on the previous step to engage a coalition of the willing to articulate a strategy for building and connecting hydrogen supply to demand.

3. Perform a techno-economic analysis
To critically assess the ideas that are generated in the previous stage, we perform a techno-economic assessment and review the available technologies and their economic feasibility. We do not support commercialization of new technologies, and instead focus on using proven products. This review is meant to analyze big system changes rather than individual projects.

4. Build support pilot, demonstration and commercialization projects
Using the insights gained in all previous stages, create compelling arguments for public and private investments in pilot, demonstration, and commercialization projects related to hydrogen fuel cell electric buses and heavy trucks and more.

Where we are looking next
As the network of hydrogen HUBs continues to expand, we are looking at regions that can provide low-cost and low-carbon hydrogen and are connected to major transportation corridors. Some of the areas we have identified for potential future HUBs include:

  • Calgary
  • Regina
  • Winnipeg
  • Kamloops
  • Vancouver
  • Prince George

 

These areas have been identified as they meet the following criteria:

  • They have the resources to make low-cost hydrogen
  • There are substantial nearby markets for this hydrogen
  • They have the ability to connect supply to demand via road, rail or pipeline
  • They have a scale of supply and demand where the economics work without sustained public investment
  • Engaged industry, governments and academics are present.

 

This is an example of what a Western Hydrogen Network could be.

Next Steps

Hydrogen is poised to become a major energy commodity in Western Canada, which will lead to massive new investments and growth for the region. The Transition Accelerator is working to find partners to launch large scale hydrogen HUBs that will grow the network towards a viable hydrogen economy.

Task Force established to Advance Hydrogen Economy in Southeast Alberta

Medicine Hat, AB – The Southeast Alberta Hydrogen Task Force (Task Force), an independent working group created to establish a framework to implement a hydrogen economy in Southeast Alberta, was officially launched today.

Invest Medicine Hat is leading a world-class Task Force composed of Prairies Economic Development Canada (PrairiesCan), City of Medicine Hat, City of Brooks, Palliser Economic Partnership, CF Industries, Methanex Corporation, APEX Regional Innovation Network (Alberta Innovates, Community Futures Entre-Corp and Medicine Hat College), RockPoint Gas Storage, Campus Energy, Envoy Energy and The Transition Accelerator. The Task Force will produce foundational tools that detail the opportunities available to advance a zero-emission fuel economy in Southeast Alberta.

The Southeast Alberta Task Force was modelled after the Alberta’s Industrial Heartland Hydrogen Task Force, whose research paved the way for the Edmonton Region Hydrogen HUB to be established.

This federal investment in the Southeast Alberta Hydrogen Task Force is just one part of the Government of Canada’s Hydrogen Strategy and will help our country reach net-zero emissions by 2050. By accelerating the production and use of cleaner energy sources, we are laying the groundwork for diversifying the economy, creating quality jobs, and supporting Alberta’s energy workers in the region.

The Honourable Jim Carr, Minister and Special Representative for the Prairies, on behalf of the Honourable Mélanie Joly, Minister of Economic Development and Official Languages, and Minister responsible for Prairies Economic Development Canada (PrairiesCan)

The Government of Alberta believes hydrogen holds great potential for our province – both as a clean source of energy, and as a source of jobs and investment that will support the continued growth of our energy sector. Establishing a regional task force to build the foundation for those future investments is an important step to building up this industry in our province. I commend all the involved parties and look forward to working with them in the years to come.

Honourable Dale Nally, Associate Minister of Natural Gas and Electricity

“The City of Medicine Hat is proud to play a leadership role in establishing Canada’s second industrial hydrogen hub,” said Mayor Ted Clugston, City of Medicine Hat. “This foundational work will form the basis of a long-term, regional economic development strategy, with the goal of creating thousands of jobs and hundreds of millions of dollars of investment in the local economy.”

Global hydrogen demand is forecast to grow exponentially in the coming decades as countries around the world drive to net zero. The Task Force will explore Southeast Alberta’s potential as a hydrogen hub, analyzing the region’s unique strengths and opportunities that could make it among the world’s lowest cost producers of low-carbon hydrogen.

The Task Force’s foundational study is the first step toward identifying broader economic opportunities associated with growing large-scale clean hydrogen production and use. The Task Force’s efforts will complement national and provincial hydrogen and natural gas strategies.

Clean energy is the future, and we believe hydrogen will be essential to meeting the world’s clean energy needs. That’s why CF Industries is pleased to join Southeast Alberta’s Hydrogen Task Force and begin to prepare our region for the transition and opportunities ahead of us. Working together, we can harness Alberta’s unparalleled strengths to become a leader in the coming hydrogen economy.

Wayne Steinke, General Manager, CF Industries Medicine Hat Nitrogen Complex

Methanex produces large quantities of hydrogen today which is ultimately used in the production of methanol. We are pleased to be involved in this collaborative task force to more fully evaluate the hydrogen opportunity and the associated prospects for carbon capture, utilization and storage.

Mark Allard, VP North America, Methanex Corporation

“The Southeast Alberta Task Force is the result of government and industry coming together to champion real change so Alberta can win economically and environmentally in a changing world,” said Dan Wicklum, CEO, The Transition Accelerator. “Picture Alberta using and supplying the world with zero-emission fuel made by upgrading natural gas or renewable energy. This could be a part of a very strong future for Alberta and Canada.”

“Alberta’s abundant, low-cost feedstock, skilled labour, and extensive infrastructure can make us a leader in the production, use and export of zero-emission hydrogen,” acknowledges Brad Maynes, managing director of Energy and Infrastructure, City of Medicine Hat. “In conjunction with our partners in the Southeast Region, we will play a key role in developing a framework that will power our economy and build our national and global reputation as innovators.”

Campus Energy is a proud owner and operator of critical energy infrastructure assets in Southeast Alberta and is developing new energy infrastructure that supports Canada’s net-zero Goals. We are pleased to support the City of Medicine Hat in their efforts to advance a diversified energy economy with opportunities for new infrastructure investment and increased skilled employment in the region. As Southern Alberta’s leader in emission sequestration, Campus is keen to support local industry partners and regional stakeholders as a low-carbon hydrogen production and delivery strategy come into focus through the Transition Accelerator.

Jeremy Baines, CEO Campus Energy Partners

The acceleration and success of the energy transition towards hydrogen will rely on collaborative efforts such as the Southeast Alberta’s Hydrogen Task Force. Envoy Energy is looking forward to playing a key role in the fueling infrastructure network and figuring out ways to make it cost effective, flexible and convenient.

James Ro, President, Envoy Energy Fuels Inc.

Over the next six months, the Task Force will work collaboratively to set the stage for the long-term build out of a regional hydrogen economy. The Task Force’s foundational work will be completed in early 2022, with a final report summarizing the effort to follow.

Canada’s first hydrogen HUB launches in the Edmonton Region backed by over $2 million in funding from three levels of government

Edmonton, AB – Picture a future for the Edmonton Region where buses, trains, heavy trucks, home heating and farm machinery all run on zero-emissions hydrogen fuel, an essential component of the new clean energy system. The region has established itself as a leader in Canada’s energy transition through the production, use and export of low-carbon hydrogen, ushering in a wave of clean energy jobs and ensuring a strong economic future.

This is the vision for the Edmonton Region Hydrogen HUB launched today by an alliance of government, Indigenous, academic and economic development leaders to kickstart the Edmonton Region’s low-carbon hydrogen economy and position the region, Alberta and Canada for success as the world shifts towards a low-carbon future to address climate change.

Backed by $1.2 million in funding from Western Economic Diversification Canada (WD), $600,000 from Alberta’s Industrial Heartland Association and $450,000 from the Province of Alberta through Emissions Reduction Alberta, the HUB’s leadership team includes Chair and Sturgeon County Mayor Alanna Hnatiw, Vice-Chair and Enoch Cree Nation Chief William Morin, Edmonton Mayor Don Iveson, Fort Saskatchewan Mayor Gale Katchur, Strathcona County Mayor Rod Frank, Lamont County Reeve David Diduck and Alexander First Nation Chief George Arcand, Jr. The Edmonton Region Hydrogen HUB is also supported by The Transition Accelerator and Edmonton Global.

This investment to launch the Edmonton Region Hydrogen HUB to accelerate the production and distribution of hydrogen fuel is part of our government’s Hydrogen Strategy and will help us achieve our goal of net-zero emissions by 2050. Today’s announcement demonstrates how our government is committed to investing in the economy, creating jobs and supporting our energy workers.

The Honourable Jim Carr, Special Representative for the Prairies

Achieving the low-carbon economy required of us will be a challenge; the hydrogen HUB checks all the boxes representing solutions to this challenge including: practical use of our current energy sector infrastructure and resources, the opportunity to be a global leader in an emerging industry, and the local unprecedented collaboration needed to achieve our ambitions.

William Morin, Vice-Chair, Edmonton Region Hydrogen HUB and Chief, Enoch Cree Nation

The HUB’s launch comes as countries around the world set net-zero targets and identify hydrogen as a vital low-carbon fuel. A final report released by Alberta’s Industrial Heartland Hydrogen Task Force outlined that Canadian hydrogen has a wholesale market potential of up to $100 billion a year and identified the Edmonton Region as the best launch point for a pan-Canadian hydrogen economy.

The region is well-positioned for success because it has one of the lowest hydrogen production costs in the world, existing experience in hydrogen production, a vast network of pipeline infrastructure, and suitable and existing sites for carbon capture, utilization and storage which are necessary to upgrade natural gas into hydrogen for use as a low-carbon fuel. The report also found that the best way to quickly achieve sufficient scale for a strong Canada-wide hydrogen economy is through the creation and deliberate connection of regional hydrogen HUBs across the country.

Hydrogen has the potential to be not just a key part of the world’s cleaner energy future, but the future of Alberta’s dynamic energy industry. The launch of the Edmonton Region Hydrogen HUB is a critical step towards building that future by establishing the local connections which will pave the way for provincial, national, and international networks in the years to come. The Government of Alberta is proud to be a partner in the development of this first Canadian HUB and we look forward to continuing our partnership with The Transition Accelerator, other levels of government, and industry as the hydrogen economy continues to gather momentum.

Dale Nally, Associate Minister of Natural Gas and Electricity, Government of Alberta

Hydrogen is redefining how we use our natural resources and the Alberta’s Industrial Heartland Association is proud to support the Edmonton Region Hydrogen HUB and its goal of accelerating a strong pan-Canadian hydrogen economy. Enthusiasm for hydrogen may be new to the world, but it’s not new to us. Advanced infrastructure, innovation, a highly skilled workforce, and low-cost feedstock, position our region as a leader in Canada’s hydrogen future. Our team is committed to stewarding this relevant work for our economy and our environment.

Alanna Hnatiw, Chair, Edmonton Region Hydrogen HUB, Chair, Alberta’s Industrial Heartland Association and Mayor, Sturgeon County

The Edmonton Region Hydrogen HUB is an example of an early hydrogen deployment HUB as outlined in the Hydrogen Strategy for Canada and will serve as a blueprint of how to accelerate a strong regional hydrogen economy that can be replicated in other regions across the country with low-cost, low-carbon hydrogen.

The HUB’s launch is a signal that work to establish a hydrogen economy in the Edmonton Region has begun. With support from The Transition Accelerator, planning is underway for over 25 potential projects related to the supply, delivery and use of low-carbon hydrogen. Potential projects include the use of hydrogen for municipal and commercial vehicle fleets and home and industrial heat and power, with more specific project details to come as they are available.

Associated links

New Report Recommends Paradigm Shift in Approach to Tackling Climate Change

Ottawa, ON – Reaching net zero greenhouse gas emissions will require major changes in the large-scale systems we use to meet societal needs, such as the way we produce and distribute energy or move people and goods. To meet this challenge, Canada needs a paradigm shift from trying to do a little bit of everything to reduce emissions to accelerating real change by strategically focusing on building out key regional and sector-specific pathways to net zero. This is the core message behind the Pathways to Net Zero report, a decision support tool released today by The Transition Accelerator, a pan-Canadian registered charity focused on reaching net zero while solving other societal challenges. The report is available to read at transitionaccelerator.ca.

Written as a reference document and tool for those making climate policy and investment decisions, the report provides assessments of different pathways to net zero for eight critical sectors, assigning different technologies and approaches a green, yellow or red designation based on their viability. Overall, the report takes a transition and an energy systems approach, recommending that government policies need to focus on how to accelerate the transformation of systems and sectors that generate greenhouse gas emissions while delivering other societal benefits, rather than on advancing incremental emissions reductions at the lowest cost per tonne by a specific date.

With this in mind, the report calls on policymakers and investors to first focus on decarbonizing sectors where net-zero technologies and approaches are already available. This means prioritizing decarbonizing electricity, accelerating electric vehicle deployment and performing mass building retrofits, since these sectors are in the more mature ‘diffusion’ phase of their decarbonization transition. For Canada to successfully reach net zero by 2050, it must commit to these viable, ready-to-deploy solutions and put Canada on a path to decarbonization now.

“Rather than just setting a regulatory and policy framework and letting the marketplace determine the pace and scale of Canada’s net zero transition, it is vital that governments target efforts and commit now to the solutions that will get us there,” said James Meadowcroft, a research director at The Transition Accelerator and the lead author of the Pathways to Net Zero report. “Without similar past commitments from governments, Canada would not have built a national highway system or have developed the oil sands.”

The report also underscores that Canada needs to consider what its future net zero energy system will look like, and build pathways to get there. For example, the report identifies decarbonized electricity, low-carbon fuels like hydrogen and biofuels, carbon capture and storage and negative emissions solutions, and dramatic changes in technologies, business models and social practices in the end use sectors as essential elements of Canada’s future clean energy system.

The Transition Accelerator will be updating the Pathways to Net Zero report periodically, adding new chapters that provide assessments of additional sectors. Click here to read the Pathways to Net Zero report.

Edmonton Region Well-Suited to Become Canada’s First Hydrogen HUB

New report from Alberta’s Industrial Heartland Hydrogen Task Force Builds on Previous Finding that Canadian Hydrogen has a Market Potential of up to $100 Billion a Year.

Edmonton, AB – Released today, the new report from Alberta’s Industrial Heartland Hydrogen Task Force lays out a roadmap for how to implement a hydrogen as fuel economy in the Edmonton Region. The Task Force was organized by The Transition Accelerator and led by Sturgeon County Mayor Alanna Hnatiw, Edmonton Mayor Don Iveson, Fort Saskatchewan Mayor Gale Katchur, Strathcona County Mayor Rod Frank and Lamont County Reeve David Diduck. With the release of its report, the Task Force has completed its mandate. The final report is available to read here.

Titled “Building a Transition Pathway to a Vibrant Hydrogen Economy in the Alberta Industrial Heartland,” the report has found that the Edmonton Region is well-suited to become Canada’s first hydrogen HUB, defined as an initiative to accelerate the development of a regional hydrogen economy that can later be connected to other HUBs across the country to achieve sufficient scale for a vibrant Canada-wide hydrogen economy. In particular, the region is a good place for Canada’s first HUB because of its access to low-cost natural gas, existing experience in hydrogen production and carbon capture and storage, a vast network of pipeline infrastructure, a large talent pool of engineers and tradespeople, and engaged industries, governments, First Nations and university and college academics. The report also complements the Government of Canada’s upcoming hydrogen strategy and the Government of Alberta’s recently released Natural Gas Vision and Strategy, which lays out a future vision for Alberta hydrogen production, use and export.

Among the main findings in the Task Force’s report are that heavy transport and heating are key to building demand for zero-emissions hydrogen. For instance, heavy-duty commercial and municipal vehicles such as fleets of trucks and buses are vital to creating demand in the region because they use large amounts of fuel and travel the same routes every day, requiring the construction of only a limited number of strategically-placed fueling stations. Heating residential and commercial buildings could also drive demand, as hydrogen can be blended with natural gas to lower greenhouse gas emissions. The report recommends that this demand for hydrogen be met through centralized large-scale blue hydrogen production potentially moved through repurposed abandoned or discontinued pipelines, which are crucial to reducing capital costs and reaching both key transportation corridors and neighbourhoods. Government investment may be required in the short-term, but the objective of the HUB is to drive the implementation of a hydrogen economy where the scale of supply and demand ensures that the full economic and environmental benefits of hydrogen will be realized without sustained public investment.

The Task Force’s report is supported by findings from a recent Transition Accelerator report, which establishes hydrogen as a vital component of Canada’s future clean energy system and the fuel of choice to decarbonize heavy freight, shipping, planes, space heating in cold climates and heavy industries such as steelmaking. The Transition Accelerator’s report also projects that Canadian hydrogen has a wholesale market potential of up to $100 billion a year, factoring in both domestic earnings and international export opportunities, and reveals that blue hydrogen can be made in Alberta’s Industrial Heartland for about half the wholesale price of diesel.

“Hydrogen will be a critical part of the future clean energy system, and the race is on to innovate value chains and business models to implement a vibrant Canadian hydrogen economy,” said Dan Wicklum, CEO, The Transition Accelerator. “Canada’s low-cost hydrogen offers a significant competitive advantage, and convening groups like the Alberta’s Industrial Heartland Hydrogen Task Force to implement regional hydrogen economies across Canada will allow us to join global leaders.”

“The synergies our region possesses through industry expertise, our educated and skilled workforce, carbon capture and storage and a supportive municipal alliance puts Alberta’s Industrial Heartland at a great advantage to build Canada’s first hydrogen HUB,” states Sturgeon County Mayor Alanna Hnatiw. “It’s a win-win not only for Alberta, but one that will reap many benefits for Canada nation-wide as the world continues moving toward reducing greenhouse gas emissions, and we’re ready.”

“The natural resources, pipelines, talent, leadership, and innovative spirit that made Alberta an energy powerhouse are the same aspects that will allow us to be a leader in the clean energy future,” said Mayor Don Iveson, City of Edmonton. “The regions that figure out how to quickly scale up the use and production of hydrogen as a fuel will win economically and environmentally in a quickly changing world.”

“Alberta’s government applauds the work of the Alberta Industrial Heartland Hydrogen Task Force in exploring the enormous potential of large-scale commercial hydrogen production in the province and for creating a well-thought out roadmap on how hydrogen could be integrated into our economy,” said Dale Nally, Associate Minister of Natural Gas and Electricity. “We have the resources, talent and experience to reap significant long-term economic benefits from this clean-burning fuel source, and we need to be ready to leverage them in the coming years. We are proud to partner with the Task Force on their work, which will be invaluable as we build our province’s roadmap for advancing a strong and profitable hydrogen economy.”

“We’re a vast country, and when it comes to producing hydrogen, there are advantages in every region,” said Seamus O’Regan, Canada’s Minister of Natural Resources. “This announcement is great news for Edmonton. This is how Canada will lead a global hydrogen economy.”

To read the Task Force’s final report, click here.

New Task Force To Create Framework To Advance Hydrogen Economy in Alberta’s Industrial Heartland

Alberta’s Industrial Heartland Hydrogen Task Force Brings Together The Region’s Mayors, Industry And Energy Leaders, Academic Experts And More.

Edmonton, AB – Alberta’s Industrial Heartland Hydrogen Task Force, an independent working group created to develop a framework to implement a hydrogen economy in the region, was officially launched today. Organized by The Transition Accelerator in tandem with Sturgeon County Mayor Alanna Hnatiw, Edmonton Mayor Don Iveson, Fort Saskatchewan Mayor Gale Katchur, Strathcona County Mayor Rod Frank and Lamont County Reeve David Diduck, the Task Force will produce a public report detailing the approach and steps needed to advance a zero-emission fuel economy in Alberta’s Industrial Heartland. The Task Force also includes an additional roster of government, business, energy, academic and sustainability leaders. A full list of Alberta’s Industrial Heartland Hydrogen Task Force members and advisors can be found here.

The demand for hydrogen in the global energy system is dramatically increasing, with projections indicating at least a tenfold increase in demand in the coming decades. The unique strengths of Alberta’s Industrial Heartland make it among the world’s lowest-cost producers of hydrogen—at approximately half the wholesale cost of diesel. Alberta blue hydrogen is made with ultra-low emissions by upgrading natural gas. The carbon by-product generated from this process can then be captured and permanently sequestered underground or used for another purpose.

Canada’s natural gas delivery industry has a long-standing commitment to innovation and emission reductions. Hydrogen holds great promise as an emerging gaseous fuel option that demonstrates both of these. Our work with partners like The Transition Accelerator supports our ongoing efforts in hydrogen research and deployment. Looking to the future, gaseous fuel delivery systems will be essential to meet the world’s environmental and economic objectives. The Transition Accelerator is doing important work to ensure hydrogen is part of the fuel mix in those systems.

Timothy M. Egan, President and CEO, Canadian Gas Association

This is a very positive initiative that will stimulate the availability of low cost, low-carbon intensity hydrogen – allowing Canadians to choose the “fuel of the future” and thrive in a carbon-constrained world. Alberta will benefit from new jobs, investment, exportable products and technology, as will Canada’s world-leading hydrogen and fuel cell sector.

Mark Kirby, President and CEO, Canadian Hydrogen and Fuel Cell Association

Currently, hydrogen is used in industrial and manufacturing processes in the region instead of as a fuel, since distribution and fueling infrastructure are not currently in place. Using hydrogen as a zero-emission fuel, and as a feedstock for other products, provides a major long-term economic opportunity for domestic use and export to international markets. Hydrogen fuel has the potential to be used in a myriad of ways, including to decarbonize natural gas distribution systems, industrial processes, thermal power generation, heavy and long-distance transportation and more.

The Task Force’s important analysis is the first step to identifying the broader economic opportunities that growing large-scale clean hydrogen production and use can bring to Alberta. These efforts also complement work that the Government of Canada has been leading, with private sector stakeholders, and governments, to develop a hydrogen strategy for Canada.

“Alberta’s Industrial Heartland Hydrogen Task Force is the result of government, industry and academia coming together to champion real change so Alberta can win economically and environmentally in a changing world,” said Dan Wicklum, CEO, The Transition Accelerator. “Picture Alberta using and supplying the world with zero-emission fuel made by upgrading natural gas. This could be a part of a very strong future for Alberta and Canada.”

“Alberta’s abundant, low-cost feedstock, skilled labour, and extensive infrastructure can make us a leader in the production, use and export of zero-emission hydrogen,” said Alanna Hnatiw, Mayor, Sturgeon County and Chair, Alberta’s Industrial Heartland Association. “The Mayors of the five municipalities of Alberta’s Industrial Heartland are playing a key role in developing a framework that will power our economy and build our national and global reputation as innovators.”

“Alberta’s Industrial Heartland has a long, proud energy history, but we need to stay current and not only accept, but drive change,” said Don Iveson, Mayor, City of Edmonton. “Creating new markets for zero-emission hydrogen fuel, made by upgrading natural gas, is a way to capitalize on our strengths and prepare for tomorrow.”

“We know that demand for hydrogen continues to grow, both here at home and around the world,” said Dale Nally, Associate Minister, Natural Gas and Electricity. “This growth provides Alberta with yet another opportunity to strengthen and extend our natural gas value chain through the development of blue hydrogen. By building on the existing knowledge and skillset of Albertans, we can attract new investment to our natural gas sector, create jobs, achieve environmental objectives, and grow Alberta’s economy. I look forward to seeing this Task Force help our province to become a competitive supplier of low-emission and affordable hydrogen for Canada and the world.”

Over 10 weeks, Alberta’s Industrial Heartland Hydrogen Task Force will set the stage for a long-term build out of a hydrogen economy in the region. View the Task Force’s final report here.

Working Together to Accelerate a Hydrogen Economy in the Alberta Industrial Heartland

Alberta’s Industrial Heartland Hydrogen Task Force is an independent working group created to develop a framework to implement a hydrogen economy in the region. The Task Force includes a roster of government, business, energy, academic, and sustainability leaders and will produce a public report detailing the approach and steps needed to advance a zero-emission fuel economy.

 

Why Hydrogen?

The demand for hydrogen in the global energy system is dramatically increasing, with projections indicating at least a tenfold increase in demand in the coming decades. The unique strengths of Alberta’s Industrial Heartland make it among the world’s lowest cost producers of hydrogen—at approximately half the wholesale cost of diesel. Alberta blue hydrogen is made with ultra-low emissions by upgrading natural gas. The carbon by-product generated from this process can then be captured and permanently sequestered underground or used for another purpose. Currently, hydrogen is used in industrial and manufacturing processes in the region, instead of as a fuel, since distribution and fueling infrastructure are not currently in place. Using hydrogen as a zero-emission fuel, and as a feedstock for other products like methanol and ammonia, provides a major long-term economic opportunity to use it domestically and export it to international markets. Hydrogen fuel has the potential to be used in a myriad of ways, including to decarbonize natural gas distribution systems, industrial processes, thermal power generation, heavy and long-distance transportation and more. The Task Force’s important analysis is the first step to identifying the broader economic opportunities that growing large-scale clean hydrogen production and use can bring to Alberta. These efforts also complement work that the Government of Canada has been leading, with private sector stakeholders, and governments, to develop a hydrogen strategy for Canada.

 

Who We Are

Alberta’s Industrial Heartland Hydrogen Task Force is the result of government, industry and academia coming together to champion change so Alberta can win economically and environmentally in a changing world. Members of the Task Force include:

 

Task Force Leaders

  • Mayor Alanna Hnatiw, Sturgeon Country
  • Mayor Don Iveson, City of Edmonton
  • Mayor Gale Katchur, Fort Saskatchewan
  • Mayor Rod Frank, Strathcona County
  • Reeve David Diduck, Lamont County

 

Task Force Analytical Team

  • David Layzell, Research Director, The Transition Accelerator
  • Jessica Lof, Research Lead, Hydrogen, CESAR
  • Cameron Young, Energy Systems Analyst, CESAR
  • Jonathan Leary, Research Assistant, CESAR
  • Song Sit, Senior Associate, CESAR

 

Special Advisors to the Analytical Team

  • Hilary Faulkner, Director, Strategic Policy and Energy Diversification, Alberta Energy
  • Oleg Podporin, Senior Policy Analyst, Natural Gas Strategy and Engagement, Alberta Energy
  • Wes Lu, Senior Analyst, Alberta Energy

 

Task Force Advisors

  • Mark Summers, Executive Director, Technology and Innovation at Emissions Reduction Alberta (ERA)
  • Justin Riemer, Assistant Deputy Minister, Western Economic Diversification Canada, Alberta Region, Government of Canada
  • Mark Kirby, President and CEO, Canadian Hydrogen and Fuel Cell Association
  • Barbra Korol, Executive Director, Strategic Policy Branch, Alberta Department of Energy
  • Chris Nash, President, Alberta Motor Transport Association
  • Sean McCoy, Assistant Professor, Department of Chemical and Petroleum Engineering, University of Calgary
  • Jim Lothrop, Director General, Innovation Centre, Transport Canada
  • Michele Evans, Assistant Deputy Minister, Tourism and Economic Development, Government of Alberta
  • John Zhou, Vice-President, Clean Energy, Alberta Innovates
  • Helen Ryan, Assistant Deputy Minister, Environment and Climate Change Canada
  • Robert Hamaliuk, Executive Director, Climate Change Policy, Government of Alberta
  • Paul Cheliak, Vice-President, Government and Regulatory Affairs, Canadian Gas Association
  • Bob Koch, Professor, Faculty of Engineering, University of Alberta
  • Margaret Bateman, Senior Consultant, ZGM Marketing
  • Mollie Johnson, Assistant Deputy Minister, Natural Resources Canada

 

Alberta’s Industrial Heartland Hydrogen Task Force is the result of government, industry and academia coming together to champion real change so Alberta can win economically and environmentally in a changing world. Picture Alberta using and supplying the world with zero-emission fuel made by upgrading natural gas. This could be a part of a very strong future for Alberta and Canada.

Dan Wicklum, CEO, The Transition Accelerator

Alberta’s abundant, low-cost feedstock, skilled labour, and extensive infrastructure can make us a leader in the production, use and export of zero-emission hydrogen. The Mayors of the five municipalities of Alberta’s Industrial Heartland are playing a key role in developing a framework that will power our economy and build our national and global reputation as innovators.

Alanna Hnatiw, Mayor, Sturgeon County and Chair, Alberta’s Industrial Heartland Association

Alberta’s Industrial Heartland has a long, proud energy history, but we need to stay current and not only accept, but drive change. Creating new markets for zero-emission hydrogen fuel, made by upgrading natural gas, is a way to capitalize on our strengths and prepare for tomorrow.

Don Iveson, Mayor, City of Edmonton

We know that demand for hydrogen continues to grow, both here at home and around the world. This growth provides Alberta with yet another opportunity to strengthen and extend our natural gas value chain through the development of blue hydrogen. By building on the existing knowledge and skillset of Albertans, we can attract new investment to our natural gas sector, create jobs, achieve environmental objectives, and grow Alberta’s economy. I look forward to seeing this task force help our province to become a competitive supplier of low-emission and affordable hydrogen for Canada and the world.

Dale Nally, Associate Minister, Natural Gas and Electricity

Canada’s natural gas delivery industry has a long-standing commitment to innovation and emission reductions. Hydrogen holds great promise as an emerging gaseous fuel option that demonstrates both of these. Our work with partners like The Transition Accelerator supports our ongoing efforts in hydrogen research and deployment. Looking to the future, gaseous fuel delivery systems will be essential to meet the world’s environmental and economic objectives. The Transition Accelerator is doing important work to ensure hydrogen is part of the fuel mix in those systems.

Timothy M. Egan, President and CEO, Canadian Gas Association

This is a very positive initiative that will stimulate the availability of low cost, low-carbon intensity hydrogen – allowing Canadians to choose the “fuel of the future” and thrive in a carbon-constrained world. Alberta will benefit from new jobs, investment, exportable products and technology, as will Canada’s world-leading hydrogen and fuel cell sector.

Mark Kirby, President and CEO, Canadian Hydrogen and Fuel Cell Association