Partner in local hydrogen hub plan casting big net
By COLLIN GALLANT on March 23, 2022.
cgallant@medicinehatnews.com@CollinGallant A key partner in a local drive to create a hydrogen hub and carbon sequestration project is advancing a separate bid near Edmonton, though the two are likely not in direct competition, according to city officials. Rockpoint Gas Storage operates the AECO natural gas system distribution hub near Suffield and is one of a half dozen private companies in a group supporting a city-led study to develop the sector in the region. Last week, Rockpoint announced a joint submission to the Alberta government with Inter Pipeline to build a major carbon capture project near the Industrial Heartland complex centred near Fort Saskatchewan. “Rockpoint has over two decades of operational and regulatory experience to provide stable, long-term geological sequestration of carbon dioxide in Alberta’s Industrial Heartland,” stated Rockpoint CEO Toby McKenna in a joint release. They are one of an increasing number of major energy companies to outline participation in a carbon market. Enbridge is also developing a hub in concert with Capital Power, near thermal power plants west of Edmonton. TC Energy and Pembina Pipelines have also outlined a potential joint venture distribution network. Rockpoint, owned by infrastructure giant Brookfield Assets, is one of the largest natural gas storage companies in North America. City of Medicine Hat energy division head Brad Maynes said a strong and fast-moving push by government and industry into the hydrogen sector, and related carbon capture projects to promote natural gas use in it, have created a number of potential projects. “From our perspective, Rockpoint is a valuable partner in the (academic group) Transition Accelerator hydrogen roadmap, and we hope they could be part of a carbon storage project as well,” he said. “As a major midstream player, it’s likely they are likely following up on a number of opportunities.” Candidates to create a series of CCUS hubs across the province have to apply to the province to be granted rights to “pore space” underground capable of holding pumped CO2. At that point further drilling and evaluation would take place while the remainder of operations, including deliveries, would be developed. The rights to pore space for an Industrial Heartland Hub would be awarded after a deadline this month. Proposals for other regions, including southeast Alberta, face a deadline of May 2. The province has said it will examine advancing a number of projects this year, though observers suggest the Industrial Heartland – home to a number of major chemical producers – would be a top priority and early mover. In the southeast region, Methanex, CF Industries and the city’s gas-fired power plant are partners in the hydrogen hub group, and would presumably be among the first customers for the facility that could sequester 3 million tonnes of carbon dioxide each year and be operated on an “open access” basis. The 2022 city budget outlines up to $6 million for drilling this year that would advance the hub project. 16-15
