Premier Jason Kenney speaks in Calgary on March 25.--CP FILE PHOTO
cgallant@medicinehatnews.com@CollinGallant
The Province of Alberta and City of Medicine Hat are speaking the same language when it comes to bolstering hydrogen production and carbon capture to stabilize the energy sector and retain manufacturing activity.
Premier Jason Kenney addressed the 2,000 delegates – including officials from Medicine Hat – at the “Canadian Hydrogen Convention” in Edmonton on Tuesday.
He announced a new provincial “centre of excellence” led by Alberta Innovates to help develop technology needed to spread the clean-burning fuel into utility use, transportation and general industry.
“The opportunities across all sectors are enormous and are certain to grow,” said Kenney, who also touted his government’s actions and the province’s advantages to gain a share of the rapidly developing sector.
“We believe that we can have the lowest cost hydrogen production in the world, and can position Alberta as a major hydrogen producer in the world.”
Also attending the event and trade show are officials with Invest Medicine Hat, the city’s economic development wing, which unveiled a two-pronged industrial strategy involving hydrogen and carbon capture last summer.
A provincial “hydrogen roadmap” was released last fall, including a concept of a regional production hub at Medicine Hat. A study into the potential to create a southeast Alberta production centre – sponsored by Medicine Hat and partners – is due this spring.
Earlier in the day, TC Energy announced it had selected its Crossfield gas plant site, north of Calgary, as a potential production centre with U.S. partner Nikola Motors.
Kenney said Alberta has major natural gas reserves, the geology to store carbon underground, a fast-growing renewable energy sector and the workforce to benefit from the next “wave” in the energy sector.
“This province will always celebrate the pioneers in oil and gas, and we must honour that legacy by being leaders in this new industry.
Hydrogen production is also closely tied to efforts to create industrial scale carbon capture and storage projects, as currently the lowest cost option is to produce so-called “blue hydrogen” using natural gas feedstock.
To be carbon neutral however, the CO2 produced by separating hydrogen from carbon in methane would need to be captured and either repurposed or stored.
Six CCUS proposals are now being advanced near Edmonton to service the Industrial Heartland, including advanced engineering to study the geologic pore space.
Observers believe the next focus area will be in the Cold Lake area, to service the oilsands region, then others after that.
Local officials say their application for the southeast zone is due in early May.
“Green hydrogen,” produced via electrolyzing water with huge amounts of renewable power, would be especially suited for the southeast of the province, said Kenney, and provide a variety of methods to stabilize and broaden the industry.
“There’s not a one-size-fits-all approach, and each region’s production will (augment the pan-provincial) sector,” he said, describing “clusters of clean” industrial operations across the province.
That could include the potential for relatively remote green power facilities combined with hydrogen production nodes – something Invest MH officials discussed recently, with the production dedicated to firing turbines that would provide base power to the grid.
At a press availability following Kenney’s address, Minister of Natural Gas and Electricity Dale Nally also told reporters that advanced changes to Bill 86 would be presented this week. That amendment is to rules for the Alberta power grid, proposed last fall, that changes should allow large-scale battery storage and potentially unlimited self supply for facilities and access on the grid.
“This is the next wave for the energy industry to create intergenerational (benefit)” said Nally.
