Calgary-based conglomerate ATCO is bullish on the potential of clean hydrogen and is throwing its weight behind multiple projects ranging from blending into natural gas networks to vehicle fueling infrastructure and blue hydrogen production at scale.

“As of now, we’re putting a tremendous amount of energy into clean hydrogen and other clean fuels,” says James Powell, vice president of clean fuels at the iconic Western Canadian company, established in 1947 as the Alberta Trailer Company. “And we’re doing so not to slash our own greenhouse gas emissions, since we cut them by 90pc in 2019 primarily by selling off our coal-fired generating capacity, but to help our customers slash their emissions. However, to do so, with the clean hydrogen industry so new, we must first crawl, then walk, and then run.”

As of now, we’re putting a tremendous amount of energy into clean hydrogen and other clean fuels” Powell, ATCO

To crawl is to blend clean hydrogen into the natural gas distribution systems of its customers, says Powell. ATCO presently has two pilot projects on that front, one already up and running in Jandakot, in the metropolitan area of Perth, Western Australia, and a second pilot to come online in Fort Saskatchewan, Alberta in the first half of next year. “A major benefit of working in a number of countries around the world, is we can take what we learn in one and apply it to another country,” he says.

The Jandakot project began operation in late 2019, blending 5pc green hydrogen into the gas stream, increasing to a 10pc blend in 2020 and with a long-term goal of blending up to 15pc hydrogen. “It’s going to take a lot of research and analysis, but we may ultimately be able to blend up to 30pc clean hydrogen into a gas distribution system,” says Powell.

Walking is to build clean hydrogen vehicle fueling infrastructure, according to Powell. In April 2020, ATCO signed an agreement with Perth-based mining company Fortescue Metals Group to explore the potential to deploy such infrastructure across Western Australia. And in late July or early August, the two companies will be commissioning their first green hydrogen production and refueling facility, again at ATCO’s Jandakot operation.

Since Fortescue also has big plans for green hydrogen, ATCO’s partnership with the mining company could lead not only to extensive hydrogen fueling infrastructure across Western Australia, but also world-scale clean hydrogen projects. “The refueling project with Fortescue has gone very well,” says Powell. “As far as I can tell we have an excellent working relationship.”

Running with Suncor

The “run” phase of ATCO’s hydrogen strategy is in partnership with oil sands heavyweight Suncor Energy, with which it announced in mid-May preliminary plans for a 300,000t/yr blue hydrogen plant to be located at ATCO’s Heartland Energy Centre near Edmonton. The companies are hoping to sanction construction of the “multi-billion dollar” project by 2024, with it coming on stream as early as 2028.

300,000t/yr – Planned blue hydrogen production at plant near Edmonton

“This is the sort of partnership we’re looking for with other world-scale projects, whether in Canada, Australia, Chile, or anywhere else that makes sense,” says Powell. “We’re looking for partners with different and complimentary skill sets, and where possible, the ability to consume a significant amount of clean hydrogen produced by the project. But it’s important to note, we don’t have additional mega-projects on the drawing board now. Our plan is to learn from the Alberta project, and go from there.”

ATCO does not have any sort of clean hydrogen projects in Chile as of yet, but it does operate one small-scale solar project in the country, with a second phase under construction. “The tailwind for Chile is renewable electricity costs, as they should be extremely low with its incredible solar potential in the north and wind potential in the extreme south,” says Powell. “The headwind, at least as a major exporter of green hydrogen, is the country is a long way from potential markets.”

In contrast, Australia looks like a very attractive market, both for domestic consumption and export, especially to East Asian countries such as Japan and South Korea, according to Powell. “Look at what Australia has done with LNG over the past fifteen years or so,” he says. “The country can probably do the same thing with green hydrogen.”

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Author: Vincent Lauerman