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Canada’s Natural Gas Delivery Industry Calls for National Cooperation to Take Advantage of Hydrogen Opportunities

By July 15, 2020 8   min read  (1488 words)

July 15, 2020 |

CCGA Hydrogen

The Canadian natural gas delivery industry is poised to play a leading role in the integration of hydrogen into the Canadian energy system.

Today, we invite all levels of government to work with our sector and other stakeholders to create the conditions necessary for Canada to become a world leader at all stages of the hydrogen supply chain, either from its production to its final use and its export.

Canada, like many other countries, is developing a national hydrogen strategy. This strategy, currently being developed by Natural Resources Canada, will help define some of the parameters for the many players who want to see Canada take advantage of the opportunities that hydrogen offers.

As a complementary measure to this strategy, the gas delivery sector recommends the creation of a national working group responsible for developing an implementation plan focused on the short-term possibilities of deployment of hydrogen in a certain number of high priority Canadian cities or regions. This working group should be representative of the diversity of Canada’s hydrogen supply chain, which includes our sector.

In the natural gas delivery industry, we are committed to leveraging our world-class energy infrastructure, our highly reliable safety culture, and our constant drive for innovation to take advantage of the opportunities ‘hydrogen. Today, natural gas can directly meet 35% of the energy needs of Canadians. This affordable and plentiful source of energy is supplied to about two-thirds of the Canadian population, and its client base is growing rapidly. As we look to the future, our industry is exploring ways in which it could integrate increasing volumes of low-emission gaseous energy – such as hydrogen – that would provide consumers with the same level of energy services. then natural gas today.

The Government of Canada has set emission reduction targets under the Pan-Canadian Framework on Clean Growth and Climate Change to meet the commitments that our country has made under the Paris Agreement. To achieve these objectives, various measures are in place or under development, including the proposal for the standard on clean fuels. Canada’s natural gas utility providers are working to find ways to comply with these measures while continuing to provide the affordable and reliable energy Canadians need. Hydrogen, which has enormous potential as a low-emission gas, is a product that Canada has in abundance. According to expert studies,[1] . However, to produce this hydrogen will require, as for natural gas today, a solid and reliable energy infrastructure. The Canadian natural gas distribution sector has the required system: underground pipes, storage facilities, and know-how.

We are not alone in making efforts in this direction. In fact, many public administrations around the world plan to incorporate large volumes of hydrogen into their gas supply networks. We must act quickly to be competitive. The natural gas delivery sector has been working on this file for several years. We have started to work with governments and other partners to identify and develop the technology, codes and standards, and the policies and regulations necessary to build a safe, affordable and prosperous Canadian hydrogen market. We are launching various projects aimed at integrating hydrogen into existing natural gas networks in Canada. These are the first initiatives, but they are promising in several regions.

As part of the COVID-19 pandemic recovery, Canada is looking for the most cost-effective means to promote a rapid recovery that will stimulate economic growth while maintaining environmental performance. We must, therefore, ensure that our infrastructure and our expertise are used to the maximum for fuel recovery. Stakeholders in the energy distribution sector understand the challenge and believe that the sector can provide leadership that will allow hydrogen to be part of the answer.

We see the potential of hydrogen as important, and we want to move this forward. We look forward to working with all interested parties.

“As Canada looks to its long-term energy future, there are exciting opportunities in the production and delivery of hydrogen,” said Timothy M. Egan, President, and CEO of Canadian Gas Association. “Our natural gas delivery sector has the infrastructure, the spirit of innovation, the expertise, and the solid standards to play a fundamental role in taking advantage of the opportunities hydrogen offers to Canada. The dynamic combination of natural gas, the gaseous fuel delivery system and hydrogen production will be essential for Canada to meet its economic and environmental goals. ”

“The natural gas delivery industry has a tradition of providing customers with the affordable and reliable energy they need to power their businesses and heat their homes,” said Leigh Ann Shoji ‑ Lee, President of Pacific Northern Gas Limited and Chair of the Board of Directors of the Canadian Gas Association. “Our public services must make constant improvements in terms of safety, reliability, and environmental performance. In terms of the future of the Canadian energy landscape, we see our industry and our infrastructure playing a leading role in the development and distribution of hydrogen. Our industry looks forward to continuing to work with a range of partners to take advantage of the opportunities that hydrogen offers. ”

“We are committed to innovating in our energy system, in particular by adopting fuels such as hydrogen. The development of the hydrogen strategy for Canada is based on the close relationship between hydrogen production and the Canadian natural gas industry. This relationship is essential to building the zero net energy future that Canadians want and deserve. – Seamus O’Regan, Minister of Natural Resources

“Alberta’s natural gas infrastructure, its experience in hydrogen production, and its leadership in carbon capture put us in a strong position to support the efforts of the Canadian Gas Association to leverage the benefits of a new hydrogen economy in Canada. By taking the Team Canada approach, we can leverage our collective knowledge, skills and resources to attract new investment and become a competitive supplier of affordable, low-emission blue hydrogen. This is an important opportunity for Canada’s provinces to support a new economic engine and economic recovery while helping the world meet its environmental goals. – Dale Nally

“To advance smart energy communities, we need to strengthen the capacity of energy sector actors to engage in collective action and drive market transformation, while maximizing the use of our existing energy infrastructure”, said Tonja Leach, Executive Director of QUEST. “This call for national cooperation to take advantage of the opportunities offered by hydrogen, launched by the natural gas delivery industry, reflects exactly the type of leadership we need.” ”

“Hydrogen created from renewable energy or natural gas for carbon capture and storage can play a key role in the decarbonization of Canada’s energy networks,” said Linda Coady, Executive Director of the Institute Pembina. “The Institute welcomes a national dialogue on the role of hydrogen as a means to achieve zero net emissions and to develop a new economy clean for Canada. ”

“The growing global interest in the use of hydrogen as a zero-emission fuel offers a remarkable economic and environmental opportunity for Canada. However, to take advantage of this opportunity, industry, governments and other stakeholders will need to deliberately devote efforts. A national economy that relies on hydrogen as an efficient and profitable fuel with export capabilities will not emerge on its own. The hydrogen value chain is too complex. A concerted approach to developing the hydrogen economy will allow us to catch up with other countries and be a world leader in clean energy. – Dan Wicklum, President and CEO, The Transition Accelerator.

“One of the advantages of the hydrogen industry is its inclusiveness,” said Bob Oliver, president and CEO of H2GO Canada. “Hydrogen is integrated into existing infrastructure by leveraging a new way to create value, so as to preserve jobs and conserve assets. The transition to hydrogen leaves no one behind. ”

“As the world leader, the Canadian hydrogen and fuel cell industry applauds ACG’s leadership in the adoption of hydrogen as an energy source and supports ACG’s call for action. government and industry commitment and the creation of a national hydrogen working group. Hydrogen is essential to decarbonize the Canadian industrial processing, heating and transportation sectors. It represents an economical and efficient choice with zero emissions, as well as a massive export opportunity. It will allow all Canadians to prosper in a world that seeks to remove carbon. – Mark Kirby, President and CEO, Canadian Hydrogen and Fuel Cell Association

About the CAG
The Canadian Gas Association (CAG) is the voice of the natural gas delivery industry in Canada. Its members include natural gas distribution and transmission companies as well as equipment manufacturers and suppliers to the industry. Our members are active in eight provinces and two territories and meet 35% of the energy needs of Canadians through a network of 570,000 km of underground infrastructure. This infrastructure can also be used to supply renewable gases, including renewable natural gas and hydrogen, to help reduce greenhouse gas emissions in Canada. Today, more than 7.1 million customers, representing approximately two-thirds of Canadians, use natural gas as a clean source,

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