Alberta’s Hydrogen Future: An Introduction

With the looming threats of climate change and the worldwide push to limit global warming to 1.5°C, countries are more focused than ever on reducing carbon emissions. Despite the meteoric rise in renewable energy production there remains a need for clean, on-demand fuels, especially for fossil-fuel-reliant areas like Alberta. Enter: Hydrogen.

What is Hydrogen?

Hydrogen, the most abundant element in the universe, is an exciting prospect for the next generation of zero-emission fuel. As a non-carbon fuel (i.e., a molecule that doesn’t contain carbon), its use does not produce carbon emissions.

Unlike electricity generated from solar or wind, which must be used or stored immediately, hydrogen acts as a form of chemical energy storage. It can be converted to other energy forms (typically electrical or thermal) at the user’s discretion. However, hydrogen does not exist naturally as a gas and must be extracted from hydrogen-containing compounds. Two of the most popular production methods are electrolysis and fossil-fuel decomposition.

Hydrogen Production Methods

Green Hydrogen (Electrolysis)

Electrolysis, often called “green” hydrogen, involves passing an electrical current through water, splitting it into hydrogen and oxygen. This method produces no direct carbon emissions if powered by renewable energy.

Grey and Blue Hydrogen (Fossil Fuel-Based)

Most fossil-fuel-based hydrogen production, known as “grey” hydrogen, uses steam methane reforming (SMR), in which hydrocarbons react with steam to produce hydrogen and carbon dioxide. When combined with carbon capture and sequestration (CCS), this process is referred to as “blue” hydrogen.

What is a Hydrogen Economy?

“Hydrogen economy” refers to a scenario where hydrogen becomes a primary energy carrier across multiple sectors, especially where other low-carbon solutions may not be feasible. In other words, hydrogen would be used as a go-to fuel, similar to how gasoline and natural gas are used today. Key sectors include:

Power Generation

Renewable energy sources like solar and wind are intermittent, requiring complementary storage solutions. Germany, a leader in renewables, faces challenges during “dunkelflaute” events—periods of low solar and wind output. In part to prevent the severity of these, Germany has maintained its use of fossil fuels (mainly coal and gas) to produce a combined 46% of its electricity in 2023,  27% of which was from coal. Hydrogen can serve as a low-emission on-demand fuel for peaking power plants or energy storage, which could replace the need for fossil fuels as an energy security tool.

Heating Sector

Hydrogen could be used as a replacement for natural gas for heating. Work is underway in experimenting with hydrogen-natural gas blending, with ATCO Gas currently testing a 5% hydrogen blend in Fort Saskatchewan, Alberta. While challenges exist, including hydrogen’s odorless nature and combustion differences, demonstration projects, such as a hydrogen-powered show home in Sherwood Park, highlight its potential.

Transportation

In the traditionally hard-to-decarbonize sector of freight and long-distance transportation, hydrogen fuel cell electric vehicles (FCEVs) offer advantages over battery-electric vehicles (BEVs) due to their quick refueling times and high energy density. Unlike BEVs, which require long charging periods, FCEVs convert hydrogen into electricity through a chemical reaction, producing only water as a byproduct. Current barriers to this technology include a lack of fuelling infrastructure and a young (non-competitive) market for FCEVs.

Hydrogen in Alberta

Alberta, as a province historically reliant on oil and gas, has faced increasing pressure to transition toward lower-carbon energy. With its vast resources of natural gas and substantial carbon capture and sequestration (CCS) potential, Alberta is well-positioned to excel in the production of blue hydrogen.

Alberta’s Hydrogen Roadmap

In 2021, Alberta released the Alberta Hydrogen Roadmap, outlining key markets and policy strategies. Several major hydrogen projects have since emerged:

• Air Products Hydrogen Plant (Edmonton): A $1.6 billion blue hydrogen facility, with nearly 30% government funding.
• Hydrogen-Heated Residential Projects: Qualico and ATCO’s fully hydrogen-heated Bremner community in Sherwood Park. See the province’s first hydrogen-heated showhome.
• Hydrogen-Natural Gas Blending (Fort Saskatchewan): ATCO Gas pilot project testing hydrogen in home heating.

To date, Alberta has invested over $106 million in 37 hydrogen projects.

The Road Ahead

If hydrogen holds so much promise, why not go all-in? Challenges remain, including:

• Environmental concerns: How much does hydrogen actually reduce emissions compared to current and other emerging technologies?
• Cost-effectiveness: Is hydrogen production efficient and affordable enough to be widely used?
• Policy uncertainty: How will shifting regulations impact investment and adoption?

Over the next few posts, I will take you through an in-depth analysis of Alberta’s hydrogen landscape, exploring environmental, economic, and policy challenges. This discussion is based on a report I co-authored with Mustajab Safarov in March 2024, evaluating Alberta’s hydrogen production mix and future scenarios.

Stay tuned for the next installment of this series!