Energy study finds hope in most plentiful gas
Hydrogen, the colourless, odourless, tasteless, flammable gas, which is the world's most plentiful chemical substance, can and probably will play a major role in cutting greenhouse gas emissions in the Atlantic region.
That's according to a study conducted by Vancouver consultants Zen Clean Energy Solutions on the feasibility of hydrogen production, storage, distribution and use in the Maritimes. The study will be revealed in an online presentation Wednesday afternoon.
It was organized by the Nova Scotia-based Offshore Energy Research Association and funded by Heritage Gas Ltd., Liberty Utilities, a subsidiary of Oakville, Ont.-based Algonquin Power & Utilities Corp., the Nova Scotia Department of Energy & Mines and the Atlantic Canada Opportunities Agency.
John Hawkins, president of Heritage Gas, said his company is interested in using hydrogen to reduce the amount of imported natural gas used in its distribution network, and he believes so-called green hydrogen, produced by wind energy, may eventually be used to displace natural gas completely.
In an interview Tuesday, Hawkins said hydrogen, which produces water when burned, is being used to replace natural gas in parts of Asia and in the United Kingdom there is a plan to begin including hydrogen as part of its gas system.
Heritage, which was a subsidiary of Calgary-based Altagas Canada Inc. until last December, is now part of privately held Trisummit Utilities, which is owned by a consortium formed by the Public Sector Pension Investment Board, the Alberta Teachers' Retirement Fund Board and PSP Investments, which manages the Public Service, the Canadian Forces, the Royal Canadian Mounted Police and the Reserve Force pension funds.
Hawkins said storage of hydrogen would be part of any plan to expand the use of the carbon-free gas, however, Heritage is not involved in development of the Alton Gas storage facility near Shubenacadie. That project is still owned by Altagas.
Although Heritage is pushing forward with the idea of developing the use of hydrogen in the market, Hawkins said, the company expects to work co-operatively with government to achieve net-zero carbon emissions by 2050 and increase energy independence.
He hopes to encourage Nova Scotia Power to use locally produced hydrogen to create greater energy self-sufficiency, rather than relying on importing hydrocarbons and electricity from outside the province.
According to the study, the lack of strategy or coordinated approach regarding how hydrogen fits into a netzero future for the Maritimes means the region is more on the path of being left behind other regions that have adopted a plan to include hydrogen in their energy mix.
“Inaction that allows ‘business as usual' to progress will result in crucial time being wasted as other regions recognize the role hydrogen is best suited to play and take necessary actions to create a regulatory and policy framework to maximize the opportunities for hydrogen,” the study states.
Zen suggests that the Maritimes develop a holistic “clean energy roadmap” for the region to develop plans and policies related to hydrogen, implement a strong regulatory framework complemented with incentives to drive transformation and decarbonization of the region's energy systems, and encourage end-use adoption of alternative fuels.
The detailed study suggests that using hydrogen electrolysis with renewable wind power is the most promising pathway in the region.
“Hydrogen production via electrolysis, powered by renewable wind, often referred to as ‘green hydrogen,' shows the best overall potential.”
Using natural gas to create hydrogen, combined with carbon-capture utilization and sequestration, referred to as “blue hydrogen,” can also be cost competitive, the study's authors state.
“It should be noted, though, that the region currently relies primarily on imported natural gas, and delivered commodity prices are high relative to other parts of Canada given the region is at the ‘end of the line' on import pathways,” they wrote.
Integrating hydrogen production into wind farms can improve the economics of both and ultimately enable greater development of intermittent renewable resources for both decarbonizing the grid and producing hydrogen as a replacement for carbonemitting transportation and heating fuels.