New hydrogen facility proposed for Alberta’s Industrial Heartland
New hydrogen facility proposed for Alberta’s Industrial Heartland.
Yet another hydrogen facility is eying development in Alberta’s Industrial Heartland (AIH).
Hydrogen Canada Corporation (HCC) is looking to develop a world-scale, low-carbon hydrogen/ammonia production facility northern Strathcona County within AIH.
Following feasibility studies by HCC, the Alberta based company closed $10 million in seed round financing this fall and signed a letter of commitment on an offtake agreement with South Korea-based E1 Corporation (E1) to develop a low-carbon blue hydrogen/ammonia supply chain from Alberta’s Industrial Heartland to South Korea and other Asian markets.
The facility is anticipated to be designed to provide a capacity of about one million tons per annum of low-carbon ammonia.
Dr. Bryan Moon, Hydrogen Canada’s president, said:
This project represents an opportunity to use cost advantaged, low carbon natural gas in Alberta to support the decarbonization of South Korea and other Asian countries and to provide a level of energy security to those countries as well.
“Access to cost effective carbon sequestration also creates a material strategic advantage for this project in Alberta’s Industrial Heartland. Our partner, E1 Corporation, is major trader of LPG in Asia, including significant volumes of Canadian LPG and it recognizes the marketability of low cost, reliable energy products sourced from western Canada“.
With a commitment to be net-zero by 2050 and aiming to reduce carbon emissions by 40 per cent by 2030, the South Korea government is throwing its support behind hydrogen and ammonia for power generation. The country is already home to one of the largest fleets of hydrogen powered cars and refuelling stations in the world.
E1 is positioning itself to be a leading supplier of clean ammonia, hydrogen and LPG in South Korea, but to make that a reality, the foundation of that depends on this partnership with HCC.
JY Koo, E1 Corporation Chairman, said:
As this promising collaboration unfolds, we are optimistic about securing crucial support from the Canadian government, a pivotal step towards the project’s success.
“This initiative not only reaffirms Canada’s position as a reliable LPG supplier for E1 Corporation but also assumes a pivotal role in the supply of clean ammonia and hydrogen to us,”
This could be the next major industrial growth,
Confirming that HCC has purchased land in northern Strathcona County near Shell, Mayor Rod Frank said this project will need export logistical support from the provincial and federal governments. He sees great potential for Alberta to serve markets in South Korea and Japan.
“This is another signal this is moving forward,” the mayor said about the land purchase. “There are still lots of other hurdles for this, but this shows the seriousness of the potential behind the final investment decision.”
“This could be the next major industrial growth for us. We’re very excited. They’re developing a business case to export hydrogen. If it does go ahead, then you’ll see, most likely, multiple hydrogen production facilities being built. The business case for one will work for others. It could be the next major wave of investment,”
Premier Danielle Smith praised the potential investment.
Smith, said in a release:
We know that Alberta has the opportunity and ability to provide energy security around the world.
“Our abundant natural resources, including hydrogen and ammonia, are enabling us to continue to grow our energy industry and pursue new technologies,”
“Alberta is open for business and we’re pleased to see Hydrogen Canada Corp. partner with South Korea’s E1 Corporation to invest here.”
No timeline was given by HCC on a final investment decision.
Having competitive advantages within the AIH such as abundant, low-cost feedstock paired with highly suitable pore space and extensive existing infrastructure for carbon capture utilization and storage, Alberta’s Industrial Heartland Association (AIHA) executive director Mark Plamondon said the region is a premier destination for foreign direct investment into value-added energy projects, such as for hydrogen and ammonia production.
Plamondon said, adding that AIHA will support Hydrogen Canada Corp. to advance this project:
World scale petrochemical projects are underpinning tremendous economic growth in our region which will provide thousands of construction jobs over this decade and hundreds of operational jobs for decades to come.
Remarkable amount of capital currently exploring new projects in Strathcona County and the Heartland
For the facility scale that CC is exploring, it could generate thousands of construction jobs and millions in new annual tax revenues, said Stephen Rausch, investment attraction manager with the county’s Economic Development and Tourism Department. He added there is not only a great deal of momentum behind this HCC facility, but many other projects.
Stephen Rausch, investment attraction manager with the county’s Economic Development and Tourism Department:
There is a remarkable amount of capital currently exploring new projects in Strathcona County and the Heartland.
“Each one represents thousands of construction jobs, millions of dollars in new tax revenues, and endless local procurement opportunities for the business community in Strathcona County and our region,”
“We are seeing a knock-on effect from the strength of our existing petrochemical cluster. New investments will continue to further strengthen our value proposition relative to other jurisdictions that are competing for these world scale facilities.”
With the need to reduce global emissions at much higher rates, residents should expect hydrogen to continue to be a hot topic.
“A significant proportion of global emissions are produced through the combustion of hydrocarbons for fuel and energy. When hydrogen is combusted, the only byproduct is water vapor. Companies in Alberta’s Industrial Heartland are among the world’s lowest cost producers of hydrogen. When paired with the proven CO2 sequestration capability in our region, Strathcona County and Alberta’s Industrial Heartland offer advantages that outpace competing jurisdictions,”
“These facts combined with a business forward perspective from our elected officials and stakeholders has positioned this region to make significant contributions to decarbonizing the global supply chain while realizing unparalleled economics opportunities here at home.”