Randy Lutin, a consultant and author of the "Toward Hydrogen" report into the potential of industrial investment in the region, speaks at the reports's release on Wednesday at Medicine Hat city hall.--News Photo Collin Gallant
cgallant@medicinehatnews.com@CollinGallant
Southeast Alberta has the building blocks to see hydrogen production and sales thrive in the region, but work is required to arrange and assemble the pieces, a report into the industrial potential for the clean-burning fuel says, released on Wednesday.
“Towards hydrogen” is a 213-page report commissioned last summer that was discussed at a noon-hour press conference at Medicine Hat city hall.
It states that “supply and demand” in the developing sector must increase in tandem, and now the report’s government and industrial partners will examine pilot projects to create the fuel and uses for it this year.
“A lot of people will look at southeast Alberta and see it as a rural area, low population area, and when they think about a ‘hydrogen hub’ they see a huge Industrial Heartland operations,” said Randy Lutin, an energy consultant who spoke to 300 businesses and individuals in the region while authoring the study.
“Make no bones about it, it’s not the Industrial Heartland, but it brings raw resources to the table. It sets itself up to be one of the lowest cost of production areas in the province, the country and maybe North America.”
Those, say Litun, are large natural gas reserves and distribution network, major renewable energy development and position on transportation networks
Natural gas is needed to produce “blue hydrogen,” seen as a first step toward carbonizing energy use. Wind and solar power projects are progressing faster than the ability to move power out of the region, setting up a potential for onsite hydrolysis of “green hydrogen” from water. It could then be used to fire existing gas turbines to generate power and thereby support the goal of a net-zero power grid.
Rail and highway systems would initially be targeted for sales to fleet trucks and locomotives, then assume an export roll.
Local partners, Methanex, CF Industries, AECO gas hub operator Rockpoint, among others and the cities of Medicine Hat and Brooks, APEX, including Medicine Hat College, will explore the potential for regional operations in what is predicted to be a multi-billion dollar sector with provincial and federal support.
That could take 10 years to fully develop, said officials, and will require support from government and businesses.
“It can’t be something where we tell government to go out and do it,” said Brad Maynes, head of the city’s utility and infrastructure division.
Local plants already produce 10 per cent of the hydrogen made in Alberta at present, but Medicine Hat’s market could grow to require 10 times that amount in utility and transport fuel requirements in 10 years if fully adopted by the public.
Medicine Hat is already studying hydrogen blending in its gas-fired power plants, and potential for hydrogen fuel cell use in its fleet of 700 vehicles.
The Alberta Motor Transport Association is piloting a heavy transport truck project between Calgary and Edmonton. Similarly, CP Rail will operate three prototype locomotives between the major centres.
Both groups would be engaged to extend pilots to Medicine Hat and beyond.
With the report, the Medicine Hat area becomes the second so-called “Hydrogen Hub” in Alberta behind the Industrial Heartland hub surrounding Edmonton, where numerous large industrial facilities are creating a local hydrogen marketplace.
Next steps in the southeast are to continue with a city plan to build a carbon sequestration hub (it received $11 million in funding this week in reallocated budget for natural gas development), engage solar and wind developers, build commitment from regional customers, and then explore external markets, like Saskatchewan, Calgary, the interior of B.C. and Montana.
Coun. Cassi Hider presided over the press conference as the city’s representative to the Palliser Economic Partnership, which joined as a partner in the study that was co-ordinated by the Transition Accelerator.
Brooks Mayor Jon Petrie said that while he sees petroleum production continuing, he’s excited the region could take advantage of new opportunities.
“It helps our province move to net zero,” he said. “Medicine Hat and Brooks have always been energy centres. It’s economic development for southeast Alberta, and that’s important… it’s a very good start.”
The study was paid for in part by a $50,000 grant from federal agency Prairies Economic Development Canada.
Hydrogen 101
Hydrogen Hub study author Randy Litun and city energy division head Brad Maynes will host a one-hour online webinar Thursday to discuss the report’s findings.
Registration for the event, beginning at 1:30 p.m., can take place on the city’s website (medicinehat.ca). A question and answer session will follow.
Maynes said the city and partners are looking to hold discussions with fleet operators and any other businesses that could potentially switch to the fuel. The webinar would be instructive for anyone interested in the sector, and especially engineers or business operators, he said.
