Canadian produced low-carbon hydrogen to be exported to Japan under new MoU

Canadian produced low-carbon hydrogen to be exported to Japan under new MoU

Alberta, Canada, could be set for a huge boost to its low-carbon hydrogen production chain under a new memorandum of understanding (MoU) between Mitsubishi Corporation and Shell Canada.

The MoU will focus on the production of low-carbon hydrogen, through the usage of carbon capture and storage (CCS), with a new facility to be built near Edmonton in the latter half of this decade.

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The blue hydrogen, which could be produced at Chemicals Park Scotford, would be produced via natural gas feedstock and exported mainly to the Japanese market to produce clean energy.

This could benefit Canada with the exports potential being lucrative for private investment whereas Japan could see an influx on blue hydrogen allowing deeper decarbonisation of its industry.

The first phase of the project aims to produce approximately 165,000 tonnes per annum of hydrogen with upside to increase production depending on considerations over future phases.

The hydrogen would then be converted to low-carbon ammonia for export to Asian markets.

Hiroki Haba, Senior Vice-President, Division COO, Next-Generation Fuels & Petroleum Business Division of Mitsubishi Corporation, said, “MC is looking into such clean energy opportunities globally. This opportunity in Canada would support Japan’s requirements for clean energy.”

Mark Pattenden, Senior Vice-President of Chemicals and Products at Shell Canada, said, “Shell is leveraging our global leadership in carbon capture and storage to help produce the low-carbon products our customers need to move through an accelerated energy transition.

“This opportunity is in line with our vision to create a world-class site to provide customers with lower-carbon fuels, products and carbon storage.”

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