Suncor, ATCO to explore clean hydrogen project in Canada

Collaborations are critical to the progress of clean hydrogen projects as well as achieving net zero-emission goals.

Suncor Energy (Canada’s leading integrated energy company) and ATCO Ltd (a diversified Candain based corporation involves in energy, utilities, transport etc.) have agreed to explore the potential for a 300k tonnes/year clean hydrogen project near Fort Saskatchewan, Alberta, Canada.

According to the plan, Suncor would build and operate the hydrogen production, and CO₂ sequestration facilities and ATCO would construct and operate associated pipeline and hydrogen storage facilities.

The facility would be built at ATCO’s Heartland Energy Centre in Alberta. The final investment decision would be made in 2024 with operation by 2028 subject to regulatory and financial support required.

Around 65% of hydrogen would be used in refining processes and cogeneration of steam and electricity at the Suncor Edmonton Refinery, cutting refinery emissions by 60%, while around 20% of the hydrogen could be used in Alberta natural gas distribution system, further reducing emission. The project would also offer hydrogen to other end-users such as industrial and mobility in Alberta.

The project is expected to cut Alberta’s CO₂ emissions by around 2 million tonnes/year, which would help the country in its efforts to achieve its carbon neutrality by 2050.

The partners believe that further regulatory certainty and fiscal support are required for the project to be feasible, e.g. the availability of carbon sequestration rights, emissions reduction compliance credits, regulations to allow hydrogen blending into natural gas, and investment tax credits for carbon capture utilisation and storage.

Mark Little, President and CEO, Suncor, said, “With abundant natural gas resources and geology that is well suited to the utilisation and permanent storage of CO₂, Alberta is one of the best places in the world to produce clean hydrogen.”

Nancy Southern, Chair and CEO, ATCO, said, “A clean energy future is a shared national priority, and a transformational project like this one will require extraordinary collaboration with all levels of governments.”

Francois-Phillippe Champagne, Minister of Innovation, Science and Industry of Canada, said, “For Canada to be a global leader in the low-carbon economy, we need to take immediate and strategic actions with long term impacts.”

Ethan Mandel

Ethan is the special correspondent for Europe covering the hydrogen industry for H2 Bulletin. Please click on the email icon to contact me via email or follow me on social media. I am reachable on Phone: 02081237815
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