GLJ: Hydrogen on the rise | boe ratio
Hydrogen is the most abundant element in the universe, constituting almost 75% of all matter. As a zero-emission energy carrier, it stands to reason that as the world strives to decarbonize our energy systems, the ability to harness this vast resource would go a long way towards meeting our overall energy needs with this greener commodity ( and maybe more blue). Resource. Globally, governments, including the federal government of Canada and various provincial governments, have concluded that hydrogen will be part of our energy mix, not least because of its potential as a lower carbon fuel. than traditional hydrocarbons. By 2021, more than 30 countries around the world had developed and adopted their own hydrogen strategies.
In November 2021, the Government of Alberta released a Roadmap to Build a Hydrogen Economy and in April of this year announced a $50 million contribution to establish a Hydrogen Center of Excellence. hydrogen within Alberta Innovates. The funds will be used to “spur innovation in the production and use of hydrogen in Alberta.” With Alberta already producing 2.4 million tonnes of hydrogen per year, policymakers clearly see increased potential in an industry that some say is expected to reach between $2.5 and $11 trillion in the future. scale globally by 2050. Alberta’s hydrogen roadmap suggests global hydrogen sales could exceed $700 billion. by 2050. Alberta’s Associate Minister of Natural Gas and Power recently noted that he is aware of at least $14 billion in hydrogen investments that have been announced in the last year only.
GLJ has for many years been keenly aware of the growing potential of hydrogen as a low carbon fuel and has observed that small projects, even temporary ones, have come to fruition and slowly built a foundation on which a much of the current global enthusiasm for hydrogen. was built. GLJ is working to unlock the potential of hydrogen as a clean and flexible energy carrier to decarbonize several high-emitting and hard-to-mitigate sectors. Our multidisciplinary hydrogen team includes expertise in engineering, geosciences and business strategy. We have formed strategic partnerships with companies specializing in plant and process design, which gives us access to an integrated project team capable of solving problems across the entire value chain of the hydrogen.
GLJ has developed early experience in providing solutions for our customers exploring the potential of hydrogen to decarbonize their operations. Our hydrogen research has been recognized by industry associations such as SPE, CHOA, CSUR and the Alberta Chamber of Resources. This roadmap of success helps our customers capitalize on the natural advantages that Canada has in terms of its hydrogen production capacity:
- Rich in raw materials at low cost
- 67% of the existing network comes from renewable sources
- 4th world producer of natural gas and 6th exporter
- Abundant geologic pore space for CO2 storage
- World leader in CCS/CCUS
- World leaders in fuel cells (Ballard Power, Hydrogenics, etc.)
- Free infrastructure
- Established hydrogen market (~3Mt/year)
- Established energy sector and world-class expertise + workforce
- Carbon pricing regime
These natural advantages cement Canada’s position as one of the cheapest hydrogen producers in the world, with one of the largest production capacities compared to other high-potential producing countries. The scorecard below provides a high-level overview of Canada’s position in select hydrogen-producing countries.
The scorecard is copyrighted by GLJ Ltd.
According to Canada’s Federal Hydrogen Strategy, Canada’s unique advantages have enabled the development of projects across the country.
Natural Resources Canada (NRCAN). 2020. Hydrogen Strategy for Canada: Seizing Opportunities for Hydrogen.
This starting point will significantly contribute to Canada’s evolution towards the decarbonization of our national economy and position it among the top three global exporters of hydrogen.
Natural Resources Canada (NRCAN). 2020. Hydrogen Strategy for Canada: Seizing Opportunities for Hydrogen
As the world moves towards decarbonization and alternative fuels, traditional players in the oil and gas sector with a long history based on traditional hydrocarbon production are also expanding their portfolios to focus at least on a broader definition of oil and gas. energy. Their participation in two recent Canadian hydrogen events demonstrates their interest and, in some cases, their commitment to advancing hydrogen in the global energy mix.
The Canadian Hydrogen Convention and the Canadian Hydrogen and Fuel Cell Association’s f-cell Canada conference were held recently in Edmonton. The GLJ team at these events had many discussions with attendees and noted how rapidly issues are evolving and how companies beyond the energy sector have roles they will need to play in determining how evolving hydrogen issues will affect their operations, planning and financial decision-making for the foreseeable future. Hydrogen is not only applicable for reducing carbon emissions from the oil and gas industry, it has great potential as a unique reduction tool for several high-emitting transportation and industrial processes that are difficult or impossible to electrify.
As a developing component of the energy sector, hydrogen (and related considerations such as CCUS) will continue to present both opportunities and challenges for the industry as its players seek to define their plans. strategic and operational in the future. GLJ’s 50 years of energy consulting experience and consistent forward-thinking approach means our customers can rely on our support which includes over 30 years of CCUS experience and a dedicated hydrogen team to deliver the solid foundation on which they can base these critical activities. plans and decisions.
Contact us to find out how we can help your business take advantage of the exponential growth of the hydrogen sector in Canada and around the world.
Devin Lacey, Senior Business Analyst
Greg Owen, Vice President, Business Development