Greene Report suggests looking at hydrogen project

Is it the next big thing?

In “The Big Reset” — page 99 — there's pitch for a new economic driver in Newfoundland and Labrador.

And that is to kickstart hydrogen development.

Specifically, Dame Moya Greene and the Premier's Economic Recovery Team suggests:

Identify infrastructure needs for industrial, transportation and consumer use; identify funding and economic opportunities and potential private sector partners; overcome technical challenges; adapt provincial infrastructure to be ready for export opportunities and focus on the development of a large-scale green hydrogen pilot project.

“Many of the practices, skills, technology and production protocols developed in oil and gas are transferable to hydrogen. The province is currently not at any of the tables where these opportunities and funding are being discussed,” the report says.

The key ingredients are available: access to renewable electricity, water and deepwater ports for export, the team points out.

And there's money to tap — the Canada Infrastructure Bank (CIB), a federal Crown corporation established in 2017 with a $35 billion budget for new, revenuegenerating infrastructure.

But is hydrogen the next great economic saviour for Newfoundland and Labrador?

“Probably not,” says Larry Hughes, a professor at Dalhousie University who researches energy security and climate issues.

“It could be an economic wealth driver especially now that the federal government is pouring money into this.”

This province has an abundance of electricity and potential for more of it.

But there better be a market for it, not just talk of them, or it's a waste of time, said Hughes.

“That is what was the curse of Churchill Falls — there was no market (for the electricity) and (then premier) Joey (Smallwood) signed everything away.”

Hughes' suggestion is to start with a small electrolysis facility, perhaps at the Come By Chance refinery, then use fuel cells produced to power buses, giving the province the knowledge and the skills.

“This is a small-scale project that could be scaled up,” he said.

Muskrat Falls itself is more costly in the hydrogen equation due to the cost of electricity to develop the industry, he said.

BIG POTENTIAL SAYS ADVOCATE

The Newfoundland and Labrador Environmental Industry Association is all for getting on board the hydrogen revolution.

Executive director Kieran Hanley described it as a potential multibillion-dollar industry for the province.

While he said there is uncertainty about demand, that isn't stopping other jurisdictions around the world from getting involved in hydrogen.

In December, Hydro-québec announced that it will build and operate an electrolysis plant in Varennes, Qué. The facility will have a capacity of 88 megawatts, making it one of the world's most powerful electrolyzers for green hydrogen production, according to Hydro-québec's website.

“(Greene) was very, very aggressive on hydrogen as being an opportunity for growth and we would very much emphatically agree with that. In my opinion it's probably the best opportunity that we have seen in a long time for substantial growth and diversification of our economy,” Hanley said.

The demand will certainly come, Hanley said. Like oil, the market would be for export using the same transport networks as oil — the port and marine transportation system, Hanley suggests.

“There is an advantage to being an early mover in any industry,” he said.

The Upper Churchill and return of control to Newfoundland and Labrador has a potential role to play, but not until 2041.

“With green hydrogen production expected to become cost competitive with grey by 2030, it is possible that large scale hydrogen production

from this resource could be highly profitable for Newfoundland and Labrador — while avoiding the complexities of trying to export electricity through multiple jurisdictions,” a discussion paper by the association said in February.

Hydrogen, notes the association, can be used directly in fuel cell electrical vehicles, for heating and can be used as a fuel for power production.

“Light-duty passenger vehicles and transit buses are commercially available, with heavy-duty and long-haul trucks showing particular promise due to the necessary duration and ranges of travel,” the paper says.

“These opportunities extend into other areas of transportation, including trains, marine vessels such as ferries, cargo vessels, cruise ships, etc., off road vehicles, and even aircraft. These applications may seem futuristic, but the technologies have existed for some time.”

TYPES OF HYDROGEN

There are three types of hydrogen — grey hydrogen can be produced with natural gas but is considered a carbonintense activity, the paper explains.

Blue hydrogen through the use of fossil fuels can be augmented by carbon capture and storage technologies.

Hydrogen can be also produced through the process called electrolysis, which is known as green hydrogen, and therefore is the cleanest.

Canada released a hydrogen strategy last year.

Cascade Institute produced a national technical paper in April called “Correcting Canada's “one eye shut” climate policy.” Its authors are Angela Carter, a Newfoundlander and Labradorian who teaches at the University of Waterloo and Truzaar Dordi, who is a Waterloo researcher.

There's a section on hydrogen that has some caution about existing policy:

“Canada's hydrogen strategy seems not to be driven by climate action but rather by compromise: financing hydrogen development affirms Canada's expectation of continuing fossil fuel production and extraction for the next three decades. Today, less than 0.7 per cent of current hydrogen production globally is generated from renewable inputs,” the paper says.

Recommendations include that the federal government acknowledge that blue hydrogen is not compatible with a managed phase-out of fossil fuel and invest in scaling green hydrogen capacities using renewable inputs like hydro. It also has this to say: “Finally, the production and consumption of hydrogen is highly wasteful. It is estimated that 30 to 45 per cent of energy is lost during the process of conversion while an additional 55 per cent is lost when hydrogen is converted back into electricity. For hydrogen produced from natural gas, more energy is needed to produce hydrogen than can be recovered, resulting in higher gas consumption and carbon emissions. While the technology is there, operationalization and scalability does not make economic sense. Consequently, using electricity directly would result in fewer energy losses.”

Industry, Energy and Technology Minister Andrew Parsons was not available for comment Friday.