Page 9 - NorthAmOil Week 32

NorthAmOil COMMENTARY NorthAmOil

Canada preps for hydrogen push

Canada is in the process of developing a national hydrogen strategy, and as with oil,

Alberta hopes to lead the way

CANADA CANADA is on the path to adopting a national production costs have fallen by 50% since 2015
hydrogen strategy, with the federal government and could be reduced by a further 30% by 2025.
WHAT: indicating in June that it could be unveiled by In the meantime, though, the majority of the
A national hydrogen the end of this summer. In tandem, the govern- world’s hydrogen output – recently estimated at
strategy is being ment of Alberta is developing its own hydrogen 76% – is produced from natural gas via steam
developed by the strategy, and hopes that the province will lead the reforming and known as grey hydrogen. Around
Canadian government national hydrogen push, as it already does with 23% has been estimated to come from coal. This
and could be unveiled oil production. is known as black hydrogen and is currently the
this summer. By pursuing the development of a national most cost-effective production method.
hydrogen strategy, Canada is following in the Rather than being a source of energy, hydro-
WHY: footsteps of a number of other countries that gen is a carrier of energy, and can be used in fuel
Blue and green hydrogen have adopted a plan for the gas. Most recently, cells to generate electricity, or power and heat.
are expected to play an Germany adopted a national hydrogen strategy Its use is increasingly being touted as a critical
important role in the in June. On the international level, the European component of the energy transition, alongside
energy transition and Union followed suit with a hydrogen strategy for a variety of other industries and technologies
a number of countries the whole bloc in July. aimed at decarbonisation.
have started adopting It is specifically blue and green hydrogen that
hydrogen strategies. Clean hydrogen Canada will seek to advance through its new
Such strategies centre on the use of clean hydro- strategy.
WHAT NEXT: gen – known as blue and green hydrogen. Blue “We are seeking to identify opportunities for
Alberta hopes to lead hydrogen is produced from fossil fuels in con- clean hydrogen production and optimal end-
the way in Canada’s junction with carbon capture and storage (CCS), use across the economy, in the short, medium,
hydrogen push, as it does which allow carbon dioxide (CO2) emissions to and longer term, while also identifying export
with oil. be captured during the production of the fossil market growth potential for Canadian clean
fuels and sequestered. Hydrogen can also be hydrogen, as well as hydrogen and fuel-cell tech-
produced from electricity and water using elec- nologies and services,” Natural Resources Can-
trolysis, and when the electricity used comes ada – a government department – stated in June.
from renewable sources, this is known as green
hydrogen. National, provincial strategies
However, green hydrogen is not yet cost-com- Few details of Ottawa’s progress on developing
petitive, though this is changing as renewa- the strategy have emerged as yet, but Natural
ble energy costs tumble. Indeed, consultancy Resources Canada has said it is working with
IHS Markit has estimated that green hydrogen a wide variety of players, including provincial

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