Canada making progress in creating flourishing hydrogen sector, but some challenges remain

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In Eastern Canada, it’s the economic challenges related to the high cost of using renewable energy to produce hydrogen. On the other side of the country, infrastructure issues need to be resolved so fuel can get safely to ports

Canada’s goal of creating a flourishing hydrogen sector is making progress, with tax credits likely to become law in the next few months.

Mr. Wilkinson said in a recent interview that while he’s pleased with movement on hydrogen, challenges remain – and are vastly different in Eastern Canada than in the West. But the chief executive of ATCO, Nancy Southern, says a few things have throttled hydrogen’s potential, including how slow Alberta was to allow hydrogen blending, where it’s mixed with natural gas for heat and other uses.ATCO was initially banking on domestic demand for hydrogen, but has since shifted its focus to the export market. That means shipping ammonia via rail from Alberta to Prince Rupert, B.C., where it can be shipped to Asia.

The credits will cover between 15 per cent and 40 per cent of eligible costs that produce hydrogen through both electrolysis and natural-gas reforming.

 

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