Page 11 - NorthAmOil Week 19 2021

NorthAmOil ENERGY TRANSITION NorthAmOil

Suncor, ATCO partner on hydrogen project

ALBERTA CANADIAN companies Suncor Energy and companies added. They said the project is antic-
utility ATCO have partnered on a project to pro- ipated to reduce Alberta’s carbon dioxide (CO2)
duce more than 300,000 tonnes per year (tpy) emissions by more than 2mn tpy.
of hydrogen near Fort Saskatchewan, Alberta. “With abundant natural gas resources and
The plan is aimed at helping oil sands producer geology that is well suited to the utilisation and
Suncor – and the broader region – reduce green- permanent storage of CO2, Alberta is one of
house gas (GHG) emissions, in line with Cana- the best places in the world to produce clean
da’s long-term decarbonisation goals. hydrogen,” stated Suncor’s president and CEO,
Canada is already a major producer of grey Mark Little. “Suncor’s 50 years of experience [of]
Around 65% of the hydrogen, which is produced from fossil fuels producing and using hydrogen in refining and
produced hydrogen in an emissions-intensive process. Suncor and upgrading operations combined with ATCO’s
would be used at ATCO’s project, however, would seek to pro- extensive midstream gas experience creates a
Suncor’s Edmonton duce blue hydrogen – which is also made from winning partnership to reduce our companies’
refinery, reducing the non-renewable sources, but with a carbon cap- emissions and establish Canada as a global leader
facility’s emissions by ture and storage (CCS) component for the emis- in clean hydrogen. Collaborating with industry
up to 60%. sions generated. partners and governments on these types of
The companies said they would use strategic projects will assist in decarbonising our
“advanced” technology to capture more than base business,” he added.
90% of the emissions generated by their hydro- The companies anticipate a final investment
gen production process. decision (FID) on the project in 2024, with oper-
Around 65% of the produced hydrogen ations then potentially starting in 2028. There is
would be used in refining processes and for no capital cost estimate yet but ATCO’s chair and
cogeneration of steam and electricity at Sun- CEO, Nancy Southern, told the Canadian Press
cor’s Edmonton refinery, reducing the facility’s that it would be a “multibillion-dollar” project.
emissions by up to 60%. Another 20% of the “We see that there’s going to be significant
produced hydrogen could be used in Alberta’s demand for the additional excess 15% of the
natural gas grid to further reduce emissions, the hydrogen,” she said.™

Xcel to buy lower-emissions

gas for Colorado customers

COLORADO ELECTRICITY and gas utility Xcel has struck a to the company’s announcement.
deal to buy natural gas with strict greenhouse gas “Energy markets and stakeholders alike are
(GHG) emissions controls for its customers in increasingly demanding responsibly sourced
Colorado. The decision makes it one of the first natural gas that is certified by a trusted, inde-
major utilities to turn to lower-emissions gas. pendent source,” stated Project Canary’s
The company will buy its “responsibly co-founder and CEO, Chris Romer. “Coloradans
sourced gas” (RSG) supplies from Crestone understand the important role natural gas plays
Peak Resources, which operates in Colorado’s in our resilient energy mix and they also expect
Denver-Julesburg (DJ) Basin. The gas will be the highest environmental standards.”
certified by Denver-based Project Canary, which For Xcel, meanwhile, the move is a step
supplies continuous monitoring technology and towards its goal of delivering carbon-neutral
a certification process to give an emissions rating electricity by 2050. It says it was the first major
for natural gas. US power producer to set such a target.
Project Canary is increasingly partnering up “We are committed to reducing methane
with various US oil and gas companies to moni- emissions from our own operations and using
tor and certify their emissions as more and more our buying power to encourage our suppliers
industry players attempt to bolster their envi- to reduce their emissions as well” Xcel Energy’s
ronmental credentials. Its other partners include president for Colorado, Alice Jackson, stated.
shale drillers EQT and Chesapeake Energy, as “That is why we’re pleased to work with Crestone
well as LNG developer NextDecade. Peak Resources and Project Canary on a pilot
Crestone is the first producer in the state to project that clearly demonstrates to custom-
use Project Canary’s TrustWell certification on ers our dedication to delivering them a cleaner
all of its current production volumes, according energy product.”™

Week 19 13•May•2021 www. NEWSBASE .com P11