Hydrogen Canada Corporation (HCC) is eyeing the development of a groundbreaking world-scale, low-carbon hydrogen/ammonia production facility in Alberta’s Industrial Heartland (AIH), specifically in northern Strathcona County. Following thorough feasibility studies, HCC successfully closed a $10 million seed round financing this fall and solidified a letter of commitment with South Korea-based E1 Corporation (E1) for an offtake agreement. This agreement aims to establish a low-carbon blue hydrogen/ammonia supply chain from AIH to South Korea and other Asian markets.
The proposed facility is anticipated to boast a capacity of approximately one million tons per annum of low-carbon ammonia. HCC’s innovative process sets itself apart by not requiring a catalyst or incineration, offering a continuous operation capable of addressing plastic waste concerns while producing an alternative fuel in an environmentally friendly and commercially sustainable manner.
Dr. Bryan Moon, President of Hydrogen Canada, highlighted the strategic advantage of using cost-advantaged, low-carbon natural gas in Alberta to support the decarbonization efforts in South Korea and other Asian countries. The partnership with E1, a major trader of LPG in Asia, positions HCC to contribute low-cost, reliable energy products sourced from western Canada.
South Korea’s commitment to being net-zero by 2050 and reducing carbon emissions by 40% by 2030 aligns with its support for hydrogen and ammonia for power generation. E1 is positioning itself as a leading supplier of clean ammonia, hydrogen, and LPG in South Korea, with the success of this partnership crucial for its ambitions.
Acknowledging the project’s potential, E1 Corporation Chairman JY Koo expressed optimism about securing support from the Canadian government, emphasizing Canada’s role as a reliable LPG supplier and a significant contributor to the supply of clean ammonia and hydrogen.
HCC has acquired land in northern Strathcona County near Shell, signaling a step forward in the project’s progression. However, Mayor Rod Frank emphasized the need for export logistical support from the provincial and federal governments. The potential for Alberta to serve markets in South Korea and Japan is seen as a significant opportunity for industrial growth.
Mark Plamondon, Executive Director of Alberta’s Industrial Heartland Association (AIHA), highlighted the region’s competitive advantages, including abundant, low-cost feedstock, suitable pore space, and existing infrastructure for carbon capture utilization and storage. He emphasized AIH’s position as a premier destination for foreign direct investment in value-added energy projects.
Stephen Rausch, Investment Attraction Manager with the county’s Economic Development and Tourism Department, noted that the HCC facility’s scale could generate thousands of construction jobs and substantial annual tax revenues. The strength of the existing petrochemical cluster in the region is contributing to the momentum behind this and other projects.
With the global imperative to reduce emissions, hydrogen remains a focal point of discussion. Rausch emphasized the significant contributions that Alberta’s Industrial Heartland can make to decarbonizing the global supply chain, thanks to its low-cost hydrogen production and proven CO2 sequestration capabilities. The region is well-positioned to realize economic opportunities while actively contributing to global decarbonization efforts.
SOURCE: ChemAnalyst
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