Canadian midstream gas operator Keyera and oil major Shell are collaborating on two potential low-carbon projects in Alberta.

The first is an open access system to move captured CO₂ from Keyera’s operations in Alberta’s Industrial Heartland region to Shell’s proposed Polaris carbon capture and storage (CCS) hub near Josephburg. The system would also transport captured CO₂ from other operations in the area.

The second is a blue hydrogen manufacturing and distribution network within the Industrial Heartland, incorporating an existing Keyera pipeline that could transport hydrogen to Edmonton.

“Our strategic collaboration with Shell is founded on a common vision to advance continued decarbonisation of the energy industry and it is based on highly complementary assets and expertise,” Keyera CEO Dean Setoguchi tells Hydrogen Economist.

“Shell has best-in-class hydrogen technology and CCS expertise; we have the midstream services and ability to store hydrogen, while our lands are adjacent in [the Industrial Heartland].”

Setoguchi adds that the keys to reducing the costs of decarbonisation are scale, collaboration and the leveraging of existing assets.

“Shell has best-in-class hydrogen technology and CCS expertise” Setoguchi, Keyera

“As Canada’s energy system continues to evolve and change, companies both big and small will need to find ways to reduce emissions,” says Susannah Pierce, president and country chair of Shell Canada.

“The agreement with Keyera will drive increased collaboration to develop low-carbon energy projects and technologies that are needed by society in our journey to net zero,” she adds.

Regional demand

The primary market for blue hydrogen produced in the Industrial Heartland will initially be industries in the region, followed by the transportation fuel market in the Edmonton hub and possibly as far away as California, according to Mark Plamondon, executive director of Alberta’s Industrial Heartland Association.

“Keyera, in partnership with Shell, is building on the tremendous value proposition in [the Industrial Heartland] by developing regional infrastructure that supports industrial decarbonisation in Alberta and Canada,” he says.

“This collaborative approach leverages synergies across our region to advance industrial growth, inclusivity and energy diversification while reducing greenhouse gas [GHG] emissions, highlighting the region’s position as a leader in Canada’s low-carbon future.”

The Industrial Heartland has produced hydrogen for oil refining since the 1950s. Over the following decades this expanded to hydrogen for fertiliser production—largely for export markets.

Low-cost gas, fresh water, salt caverns and the fact that two CCS pipelines—Shell’s Quest project and the Alberta Carbon Trunk Line—already service the region, mean the Industrial Heartland is well-placed to quickly ramp up production of low-cost hydrogen, Plamondon adds.

“There is plenty of low-carbon production potential in [the Industrial Heartland],” he says. “The issue is developing markets for that production.”

Exports to overseas markets such as Japan and South Korea should begin later this decade, assuming the transportation infrastructure is there, he adds.

The Industrial Heartland is the largest hydrocarbon processing region in Canada, accounting for about a quarter of Alberta’s GHG emissions—which in turn amount to 38pc of national emissions.

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Author: Vincent Lauerman