Hydrogen is green and clean, but so very slow

While hydrogen is hailed as a green and clean alternative to fossil fuels for many uses, progress has been slow around the world, and traditional fuels remain dominant. But now the BC Energy Regulator, an agency of the provincial government, introduces on April 1 a new “regulatory framework” for hydrogen manufacturing in BC.

It says this was “created in consultation with industry, First Nations and communities to help support the development of a robust and responsible hydrogen sector in the province.” The regulator says the new rules (with more details to come) will streamline its requirements for hydrogen manufacturing in BC.

“Smaller facilities that have minimal potential impacts on public safety and the environment will see a simplified application process focused on well-established standards used widely in the hydrogen industry. “Larger, more complex projects will see an approach similar to other major projects regulated by the BCER – this includes technical, environmental, safety, and local engagement requirements.”

This comes as the federal government reports some 80 low-carbon hydrogen production projects have been announced — but only 13 are in operation in Canada. If all 80 went ahead, it would mean over $100 billion in potential investment, and annual production of five million tonnes of hydrogen. And a number of hydrogen projects have Indigenous partnerships or support.

“The projects are targeting a broad array of end uses, including oil and gas refining, industry feedstock, natural gas blending, transport and several projects focused on ammonia production for export.” Ottawa says hydrogen refuelling networks for vehicles are developing in BC, Alberta, Ontario and Quebec.

“Hydrogen hubs” are forming in Vancouver, Edmonton, and Southern Ontario. And UBC Okanagan and FortisBC are working together on made-in- BC hydrogen research. Natural Resources Canada has published a list of “projects of significance” that includes these examples:

• Air Products is building a $1.6-billion hydrogen complex in Edmonton, to produce 140,000 tonnes of hydrogen per year from natural gas with a carbon-capture process that will capture more than 90% of its carbon.
• In BC, the McLeod Lake Indian Band is working on the $7-billion Tse’khene Energy Transition Hub, on the Kerry Lake East Reserve north of Prince George. It aims to start up in 2026. “Once fully developed, it will . . . be one of the largest Indigenous energy projects in Canada.”
• Also in BC, the Fort Nelson First Nation and Hydrogen Naturally plan to produce 20,000 tonnes of hydrogen per year, using wood pellets and permanently sequestering the carbon.
• HTEC is building two BC hydrogen-fuelling stations and a production facility in Burnaby. “These assets are key to advancing the deployment of heavy-duty vehicles on BC’s roads.” It has spoken of building 18 hydrogen refuelling stations in BC and two in Alberta.
• Pembina Pipeline is working to develop a facility beside its Redwater Complex in Alberta. It would produce 85,000 tonnes a year of ammonia for Japan and other Asian markets. A final investment decision (FID) is expected in the second half of this year, targeting the start of operations in 2028.
• Two hydrogen-export projects are in the works or in advanced planning stages in Nova Scotia. Both plan to use power from wind farms to produce hydrogen from water, then convert the hydrogen to ammonia for export to the European market.

One hopes to begin operations later this year or in early 2026. But some potential developers in Canada are concerned about the availability of enough and steady electricity to drive power-hungry hydrogen plants. Canada is already in the top 10 of global hydrogen producers, at around 3 million tonnes annually.

The largest current use is for oil refining, ammonia production, methanol production, and steel production. Now Ottawa and Germany are each putting $300 million into supporting hydrogen exports to Germany, from Nova Scotia and/or Newfoundland. Germany in particular is betting big on hydrogen; one estimate is that it will eat up as much as $120 billion. Germany is not alone.

Egypt, for one, plans an $11-billion project to produce one million tonnes of ammonia a year. China, the world’s largest producer and consumer of hydrogen, is adding a $680-million plant.

But many world projects are going slowly, or are on hold. And in England, oil/gas giant BP cancelled a major hydrogen project, as that company scales back investments in green energy by over $5 billion, and will be putting up to $10 billion a year more into oil and gas development.