TC Energy, Nikola eye southern Alberta site for possible hydrogen hub
TC Energy Corp. announced Tuesday that it has begun evaluating plans for a hydrogen production hub on a site near Crossfield, Alta., where the company currently operates a natural gas storage facility.
The Calgary-based pipeline company is working with U.S. electric vehicle startup Nikola Corp. on feasibility for the project, which could eventually see the construction and operation of a large-scale hydrogen production facility to distribute fuel for long-haul electric trucks, as well as energy for residential and commercial heating and power generation.
“It shows how we can leverage our existing footprint and our existing assets to participate in the energy transition,” Corey Hessen, president of TC Energy's power and storage division, said in an interview. “Geographically, it's located in a location where it's sort of a confluence of mobility opportunities, potentially, and then also some of our other historical customers.”
The initial phase would see the hub producing an estimated 60 tonnes of hydrogen per day using natural gas, with the capacity to increase to 150 tonnes per day in the future. CO2 generated during production would be captured and stored underground in order to reduce emissions, resulting in a product sometimes called “blue” hydrogen.
The proposed site located at TC Energy's Crossfield gas storage facility, 50 kilometres north of Calgary, is on a key transportation corridor, the company said.
Hessen said based on very preliminary estimates, the cost of the project could range between $400 million and $800 million, based on an estimated capital expenditure of $10 million per tonne.
“It's early days, so we don't know exactly what that demand will be. Sizing will be a function of the demand that we can create with our customers,” Hessen said.
TC Energy first announced the partnership with Nikola last fall. The Arizona-based company manufactures zero-emission vehicles and has specialized in heavy duty transportation.
The project's proponents have said previously that hydrogen would likely initially be produced in a liquefied form and transported by truck to fuelling stations and other industrial users. TC Energy could look at using existing pipelines to transport hydrogen or build new pipelines.