B.C. government and industry partners working to develop hydrogen as a low-carbon energy option for families and businesses
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Insights
The collaboration between Enbridge, FortisBC and the British Columbia Ministry highlights a strategic initiative to leverage existing gas pipeline infrastructure for hydrogen transportation. This aligns with the broader industry trend of transitioning towards low-carbon energy solutions. The integration of hydrogen into the natural gas network could position British Columbia as a leader in clean energy, potentially attracting investments and fostering job creation within the province.
From an energy sector perspective, the successful outcome of the study may lead to an increase in the valuation of companies like Enbridge and FortisBC, as they would be perceived as front-runners in hydrogen distribution. This could also signal a shift in the energy mix that these companies manage, possibly affecting their long-term revenue streams and capital expenditure plans.
Hydrogen blending in natural gas pipelines represents a significant policy development in terms of greenhouse gas reduction. If the study confirms the feasibility of using the existing infrastructure for hydrogen, it could pave the way for new regulations and standards that would facilitate a cleaner energy transition. This would be a critical step for British Columbia in meeting its climate goals and could serve as a model for other jurisdictions.
The development of a commercial hydrogen market could also incentivize private sector innovation and partnership, potentially leading to advancements in hydrogen production and storage technologies. However, it is crucial to consider the environmental impact of hydrogen production, as its benefits are maximized when produced from renewable sources.
The potential repurposing of existing gas pipelines for hydrogen transport is a cost-effective approach compared to building new infrastructure. Investors and stakeholders in the infrastructure sector could view this as a positive development, as it may extend the useful life of assets and provide new revenue opportunities without incurring significant capital costs.
However, the technical challenges associated with hydrogen blending, such as material compatibility and safety considerations, must be thoroughly addressed. The outcome of the study will be crucial in determining the scale of investment required to retrofit the current pipeline systems and the timeline for such projects. Investors will need to weigh the immediate costs against the long-term benefits of adapting to a low-carbon economy.
This hydrogen blending study will look at the percentage of hydrogen that can be safely transported through gas pipeline infrastructure, such as Enbridge's Westcoast natural gas transmission system, as well as FortisBC's gas transmission and distribution systems, to reduce greenhouse gas emissions and help develop a low-carbon energy economy. If upon completion it is determined that hydrogen can be safely transported in this infrastructure, the study will be used to inform the development of codes and standards to regulate its transportation and help to inform the development of a commercial hydrogen market in the province.
Enbridge's Westcoast system operates more than 2,900 kilometres (km) of pipeline from the northeast of the province to the
B.C.'s gas infrastructure can play an important role in enabling the energy transition and providing people with the energy they need and use every day. As the energy transition progresses, the type of energy transported on this infrastructure can change to include more low-carbon and renewable sources. B.C. is well positioned to make this happen and has significant potential to produce the energy needed to transition to a low-carbon future that creates new opportunities for communities and Indigenous groups to participate in the energy transition.
Quotes
"Hydrogen is a renewable energy source that is critical to reducing greenhouse gas emissions and helping the province transition to clean energy. By using existing infrastructure to transport this energy, we can reduce the number of trucks on B.C. highways and roads," said Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation. "This partnership study will also help to inform our regulatory standards going forward so that this clean energy can be transported efficiently and safely to the markets that need it."
"At Enbridge, we are working hard to reduce our greenhouse gas emissions and the carbon intensity of the energy we transport," said Cynthia Hansen, Enbridge Executive Vice President and President, Gas Transmission and Midstream. "One way we're doing this is by using our existing energy infrastructure to transport low-carbon forms of energy such as hydrogen. This important study will play a critical role in determining how existing energy infrastructure can be used to transport hydrogen and how we can continue to work to advance the energy transition."
"FortisBC recognizes that we have a critical role to play in helping our customers reduce greenhouse gas emissions by providing new energy options that can be delivered safely and reliably through our existing gas system," said Roger Dall'Antonia, president and CEO at FortisBC. "Our long-term vision is to have hydrogen be part of our renewable and low-carbon gas supply, and collaboration with industry and government in research such as this is a pivotal step toward finding the safest way of making that vision a reality."
About Enbridge
At Enbridge, we safely connect millions of people to the energy they rely on every day, fueling quality of life through our North American natural gas, oil and renewable power networks and our growing European offshore wind portfolio. We're investing in modern energy delivery infrastructure to sustain access to secure, affordable energy and building on more than a century of operating conventional energy infrastructure and two decades of experience in renewable power. We're advancing new technologies including hydrogen, renewable natural gas, carbon capture and storage and are committed to achieving net zero greenhouse gas emissions by 2050. Headquartered in
About FortisBC Energy Inc.
FortisBC Energy Inc. is a regulated utility focused on providing safe and reliable energy, including natural gas, Renewable Natural Gas[1] and propane. FortisBC Energy Inc. employs around 2,096 British Columbians and serves approximately 1,075,595 customers across
For further information, please contact:
Enbridge | FortisBC | |
Media Phone: 1-888-992-0997 Email: media@enbridge.com | Media Phone: 1-855-322-6397 (FortisBC news) | |
Investment Community Phone: 1-800-481-2804 |
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1 Renewable Natural Gas (also called RNG or biomethane) is produced in a different manner than conventional natural gas. It is derived from biogas, which is produced from decomposing organic waste from landfills, agricultural waste and wastewater from treatment facilities. The biogas is captured and cleaned to create Renewable Natural Gas. |
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SOURCE Enbridge Inc.
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