Suncor, Atco to partner on 300,000 mt/year hydrogen facility

Canada's Suncor Energy and logistics firm Atco plan to build a 300,000 mt/year hydrogen production facility capturing 90% or more CO2 emitted during the production process, Suncor said May 11.

About 65% of the hydrogen would be used in refining processes and cogeneration of steam and electricity at the Suncor Edmonton Refinery and 20% in Alberta's natural gas grid, Suncor said.

"In addition to supplying clean hydrogen to Suncor and the Alberta gas grid, the project would make hydrogen volumes available for Alberta's other industrial, municipal and commercial transport users," Suncor said in a statement.

The hydrogen production facility would be at ATCO's Heartland Energy Centre in Alberta and could be operational as early as 2028, with a sanctioning decision expected in 2024. The company noted it would need regulatory fiscal support to "render it economic."

S&P Global Platts assessed the Alberta hydrogen price including Capex for Steam Methane Reforming (SMR) excluding carbon capture and storage (CCS) at C$1.19/kg ($0.98/kg) Monday. By comparison, Platts assessed US Gulf Coast SMR without CCS price including capex at 96 cents/kg, roughly on par with the Canadian price.