CALGARY — It seems like a no-brainer to use clean-burning hydrogen to offset the environmental negatives of natural gas for warming homes, but pilot projects to do just that starting next year illustrate nothing is simple about this trendy new energy source.

As companies consider ways to commercialize hydrogen as a cleaner alternative fuel and projects advance in Fort Saskatchewan, Alta., and Markham, Ont., most observers concede it will take time and government support to overcome its cost competitiveness issues and lack of infrastructure.

“All hydrogen is not created equal,” says Tahra Jutt, director of the clean economy program for B.C. with environmental think tank The Pembina Institute and co-author of a hydrogen primer published in July.

“If you blend the lowest carbon hydrogen, you’re going to get a much better outcome in terms of climate benefit.”

Hydrogen has many advantages as an energy source. When it burns it leaves only water behind — no carbon dioxide or other greenhouse gases. It can be used for high-energy-intensity applications such as trucking, shipping and steelmaking. It can be compressed for energy storage and transportation. It’s non-toxic and dissipates quickly when released.

But there are disadvantages, too. Its low ignition temperature and nearly invisible flame when burning pose potential safety issues. Concentrated hydrogen can damage metal, requiring enhanced protection for pipelines. 

The act of creating hydrogen requires energy, whether to tear apart water molecules with the electrolysis method or breaking down natural gas molecules through thermal processes which themselves create greenhouse gases.

“The economics in our view for blue and green (hydrogen) are challenged right now but support will increase, costs are bound to come down, so (it’s) another good opportunity for us to capitalize on our infrastructure,” said Al Monaco, CEO of pipeline company Enbridge Inc., on a recent conference call, echoing the cautious stance taken by many industry leaders.

Almost all of the hydrogen created in Canada today is considered “grey,” created by burning fossil fuel and then used in industrial processes such as refining petroleum or producing fertilizer. Pembina estimates it costs between 91 cents and $1.42 per kilogram to make.

If the carbon dioxide and other pollutants from making grey hydrogen are captured and stored, it becomes “blue” hydrogen, but the cost jumps to between $1.34 and $1.85 per kilogram.

“Green” hydrogen is separated from water using only renewable electricity and, while it is the most environmentally benign, it is also the most expensive at between $3 and $5 per kilogram, according to Pembina.

Utility subsidiaries of Enbridge and Atco Ltd. are embarking on plans to inject hydrogen into the natural gas stream leading to home furnaces and water heaters in Markham and Fort Saskatchewan. 

Electricity can’t be stored as is, but at Enbridge’s power-to-gas facility in Markham it is used to create hydrogen from water that can be stored until eventually being turned back into electricity with Enbridge’s 2.5-megawatt hydrogen fuel cell when needed.

Markham’s hydrogen is considered green because it is made with intermittent renewable electricity. The facility opened in 2018 after investments of $4.5 million by an Enbridge partnership and $4 million by the federal government. Its operation is supported by a three-year contract from Ontario’s electric system operator to supply surplus renewable power.

The system works to level out energy availability but when more hydrogen is created than can be stored, it has to be vented, says Cynthia Hansen, president of gas distribution and storage for Enbridge.

A partial solution is to blend the surplus at about two per cent into the local natural gas stream to reduce its overall GHG emissions, a $5.2-million project (with $221,000 from the federal government) expected to begin for about 3,600 customers starting next summer.

Atco, meanwhile, is building a $6-million hydrogen blending project backed by $2.8 million in Alberta provincial grants and expected to be operational in early 2022. 

It is to deliver about five per cent hydrogen in the gas stream to about 5,000 homes in Fort Saskatchewan, a small city just northeast of Edmonton, with the hydrogen coming from an unnamed local supplier.

“When it starts up it will be grey and then it will transition to blue as the supply in the area builds out,” said Jason Sharpe, Atco’s general manager of natural gas, estimating it will take two to three years for blue hydrogen to become available.

The Fort Saskatchewan area, with its refineries and petrochemical facilities, is ground zero for carbon capture and storage in Alberta.

Shell Canada’s Quest project, opened in 2015, has injected more than five million tonnes of carbon dioxide into underground storage from its oilsands upgrader.

The recently completed Alberta Carbon Trunk Line is a pipeline system designed to collect CO2 from industrial sites in the region and take it to mature oilfields where its permanent storage also results in enhanced oil recovery.

The global market for hydrogen could easily triple from current levels of about $200 billion per year by 2050 as countries adopt its use as a decarbonization strategy, according to GLJ, a prominent Calgary energy resource consulting firm.

Canada is well-positioned to become an exporter into this growing market because of its current and potential production, GLJ said.

Pembina’s Jutt, however, says hydrogen usage should be targeted. While it may make sense to use it for home heating in some regions, that application doesn’t necessarily make sense in B.C., where energy from renewable hydroelectric sources is potentially more environmentally friendly.

Much is riding on promised federal and provincial government regulatory, strategic and financial commitments to hydrogen, as well as other alternative fuels that can help Canada meet its goal of net-zero GHG emissions by 2050, she added.

“Businesses will do what’s right for them from an economic perspective but I think everyone’s looking to government for signals that it’s good to invest in these things — hydrogen being one of many fuels that we’ll need to reach our 2050 goals.”

This report by The Canadian Press was first published Dec. 4, 2020.

Companies in this story: (TSX:ENB, TSX:ACO)

Dan Healing, The Canadian Press

CALGARY — One child asks for a coat for her dog in case her family gets evicted. Another girl hopes Santa can bring her pet medication he needs. Another wishes for enough dog food.

A charity that provides subsidized pet care, including food hampers and medical treatment, for low-income residents is receiving Christmas letters from children asking for help for their furry friends.

Parachutes for Pets in Calgary has delivered 2,000 pet food hampers since the COVID-19 pandemic hit in March. But demand, especially during the second wave of the pandemic, is taking its toll on both the organization and those receiving help.

“Instead of Santa I wanted to write to you guys. My dog Badger is really cute and my best friend. He needs pills or he gets really, really sick. Could you bring me his pills for my Santa gift? I’ve been really good and so has he,” reads a letter signed Hanna and Badger.

The organization says it has received 14 letters from children in the last week that normally would have gone to Santa.

“My Christmas wish this year is a coat for my dog Max. Mom says we can’t pay rent after this month and I want Max to be warm if we have to stay in our car,” wrote Kaylee.

“I have a warm coat and I think one would be good for him to stay warm. Please tell Santa this is my only wish. Merry Christmas.”

Melissa David, who founded the charity, said the messages from the kids are heartbreaking.

“Instead of writing to Santa, they’ve written to us. Their Christmas wish is either for their dog to get medication and their dog to get food, so they don’t have to share their meal with them.”

David said the charity referred Kaylee’s mom, who was at risk of being evicted, with an agency to deal with her rent arrears.

She said the charity made it through the first wave of the pandemic, but the resurgence of COVID-19 in the last months has resulted in demands coming at a “fast and furious rate.”

“This second wave is going to cripple us. The amount of additional homeless with pets and domestic violence incidents involving pets is astronomical,” David said.

People are still donating food items, she said, but there’s also a need for cash, which is in short supply.

“This (pandemic) in addition to everyday challenges that are still here, such as cancer and illness, is really making it difficult for people to keep their pets at a time they can’t afford mentally to lose them.”

David said she is reaching out in desperation since there are limits on what help the charity can arrange.

“We were passed over for most COVID grants because animals were not considered essential.”

There are also messages asking for help from physically abused women who are afraid to leave their pets behind.

“They want to take their pet with them. They’re at the lowest of lows and they don’t leave with anything but the clothes on their back. And if that pet stays, statistics are 80 per cent that it will be tortured or killed or used as some sort of revenge by the abuser.”

The head of the Calgary Women’s Emergency Shelter said crisis calls between April and September were up nearly 65 per cent compared with the year before.

Shelter CEO Kim Ruse confirms many women stay where they are for fear of their pets being harmed. 

“Not having a place for pets to go often stops women from leaving abusive and dangerous situations,” Ruse said. “Many are unaware that there are options for keeping pets safe while finding safety for themselves and their children.”

She said the agency does have pet-friendly rooms to accommodate small animals.

“Allowing pets in the shelter will help provide emotional and healing support for women and their children during their stay.”

This report by The Canadian Press was first published Dec. 4, 2020

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Bill Graveland, The Canadian Press