Tapping into the Potential of Low-Carbon Hydrogen in Ontario

Hydrogen may be one of the most reliable, versatile sources of green energy available today.

A hydrogen-powered train that produces zero greenhouse gas emissions.

Earlier this month, the Ontario Society of Professional Engineers (OSPE) hosted the “Opportunities and Challenges for Hydrogen in Ontario” webinar. The goal of the webinar was to explore how to bolster low-carbon hydrogen production and augment the province’s infrastructure to accommodate hydrogen distribution for a range of applications.

A Global Paradigm Shift

With a global shift away from fossil fuels and towards renewable energy, hydrogen extracted with practically zero greenhouse gas emissions (i.e., low-carbon hydrogen) stands to complement the current energy infrastructure in Ontario.

The cost of low-carbon hydrogen is predicted to drop 64 percent by 2040, and efforts are in place to use hydrogen as an alternative energy source to fossil fuels. Germany, for example, has already earmarked USD$10.7 billion (EUR€9 billion) towards using low-carbon hydrogen to end its dependence on coal. Spain, France, Norway, Netherlands, South Korea, Japan, USA and Australia are similarly moving towards long-term investments in low-carbon hydrogen.

In December 2020, Canada launched its own hydrogen strategy, predicting that by the year 2050, the market for hydrogen-related products could be worth as much as USD$39.6 billion (CAD$50 billion), and provide jobs for roughly 350,000 Canadians. This is in line with Ontario’s existing goal of reducing greenhouse gas (GHG) emissions to 30 percent lower in 2030 than they were in 2005.

The Hydrogen Rainbow

Hydrogen can be extracted in a variety of ways. The following is the generally accepted convention for classifying hydrogen extraction techniques:

• Grey hydrogen: Hydrogen is extracted from natural gas using steam methane reforming. Unfortunately, this method leads to high carbon emissions and is currently the most prevalent form of hydrogen extraction in the world; an exorbitant 95 percent of all hydrogen extracted today is grey and brown hydrogen.
• Brown hydrogen: Similar to grey hydrogen, but in this case, coal is used instead of natural gas.
• Blue hydrogen: Hydrogen is extracted from natural gas, but the CO₂ produced is captured and stored using carbon capture, utilization and storage (CCUS).
• Turquoise hydrogen: Like with grey and blue hydrogen, the hydrogen is extracted from natural gas. However, here the natural gas is passed through molten metal, separating hydrogen as a gas while converting carbon into a solid by-product.
• Green hydrogen: Hydrogen is extracted by electrolysis using energy from renewable sources such as hydropower, solar and wind. Hydrogen produced from biomass gasification is also considered green hydrogen because, like with renewable sources, there are virtually zero GHG emissions.
• Pink hydrogen: Hydrogen is extracted by electrolysis, but in this case the electrolysis is carried out using nuclear energy.
• Yellow hydrogen: Hydrogen is extracted by electrolysis using grid electricity, which can be from a variety of sources depending on the country.

Of the above types, green, blue and pink hydrogen are considered low-carbon hydrogen since limited GHG emissions take place during hydrogen production. While turquoise hydrogen would also fall under this category, as of right now it is a purely theoretical method and has not been implemented in any hydrogen production plant.

The production cycle of green, blue and grey hydrogen. (Image courtesy of Ontario.ca.)

Ontario is well-poised to calibrate its infrastructure towards low-carbon hydrogen, considering how a majority of the province’s energy comes from renewable sources. In 2018, 95 percent of the total energy generated by the province was renewable, with nuclear energy comprising 60 percent, hydropower at 26 percent, wind at seven percent and solar at two percent.

A breakdown of Ontario’s energy generation in 2018. (Image courtesy of Canada Energy Regulator.)

With 18 nuclear reactors, 120 hydroelectric facilities, more than 6500 wind turbines and 98 percent of all solar panels in Canada currently in operation in Ontario, there is an abundant supply of renewable energy that can used to generate low-carbon hydrogen.

Ontario has already set a number of hydrogen-focused projects in motion. Companies like Next Hydrogen, Dana and Cummins have been offering low-carbon hydrogen solutions such as fuel cells and battery systems since as early as 2008. Ontario also boasts the largest population of all provinces and territories in Canada, and—given its strategic location (bordering Quebec, Manitoba and the U.S.)—the opportunities for trading hydrogen products both domestically and internationally are promising.

Hydrogen Applications

Natural gas has the lowest GHG emissions of all fossil fuels, but they’re still significant. Hydrogen blending is when low-carbon hydrogen is infused into the natural gas supply for cooking and heating. The blending can be as low as five percent or as high as 30 percent, but the main benefit is that it reduces the amount of GHG that would otherwise be produced. For instance, blending natural gas with 20 percent low-carbon hydrogen would likely prevent six million tonnes of CO₂ emissions per year. Energy efficiency is also reportedly higher, considering how natural gas has an energy content of 55 MJ/kg, while hydrogen has an energy content of 120 MJ/kg—more than twice the energy from natural gas.

Hydrogen blending has been implemented in several countries around the world, such as Japan, France, Germany and UK. In Ontario, Enbridge Gas and Cummins embarked on a USD$4.2 million (CAD$5.2 million) project in 2020 to blend the natural gas network with two percent low-carbon hydrogen. This project is limited to the city of Markham, and is the first foray into hydrogen blending in North America.

By intersecting multiple energy sources with the hydrogen production cycle, the carbon footprint of Ontario’s energy grid can be greatly reduced while making power generation more robust and efficient. (Image courtesy of Enbridge.)

Transportation marks another sector where low-carbon hydrogen can prove auspicious. Transportation is one of the leading causes of GHG emissions in the world—and in Ontario, it’s the largest contributor at 35 percent. Trucks are especially notorious, making up nearly 56 percent of all transport emissions in Ontario.

Diesel emits 2.7kg of CO₂ per liter while petrol produces 2.3kg of CO₂, making them both extremely straining on the environment. Compressed natural gas (CNG) vehicles employ hydrogen blending, where the fossil fuel is mixed with hydrogen to increase its efficiency and reduce GHG emissions.

Hydrogen fuel cells stand to become a viable, cost-competitive alternative to fossil fuels, with many speculating that low-carbon hydrogen may be competing with fossil fuels directly by 2030. Fuel cells hold numerous advantages over fossil fuels. For one, fuel cells are far more energy-dense than gasoline. Diesel has an energy content of 45.5 MJ/kg and petrol has an energy content of 45.8 MJ/kg. By comparison, hydrogen fuel cells have an energy content of 120 MJ/kg. This also means that machines powered by fuel cells can operate at optimal levels for longer, requiring less refueling in between (with refueling taking just as long as it would for a regular gasoline-powered vehicle). Replacing fuel cells is also a less cumbersome task compared to replacing batteries in regular vehicles. Most importantly, fuel cells have zero GHG emissions, as water is the only by-product of the fuel cell reaction.

Fuel cells use hydrogen and oxygen to produce energy, with the only “waste” being pure water. (Image courtesy of Energy.gov)

Fuel cell electric vehicle (FCEV) forklifts are currently being used in companies like Walmart Canada, where they operate at high capacity for long hours and are projected to lower operating costs by USD$1 million (CAD$1.3 million). Commercial FCEVs like Japan’s Toyota Mirai are in production. The world’s first hydrogen fuel cell train completed three months of test service in Austria in December 2020. Delivery trucks and other vehicles powered by Cummins’ fuel cells are in active service in Norway, Germany and other countries.

Considering how 35 percent of Ontario’s GHG emissions stem from transportation, FCEVs would greatly reduce the province’s emissions. They would also increase efficiency by allowing vehicles to traverse longer distances while minimizing refueling time.

Fuel cells have further applications in terms of generating sustainable and long-term energy storage.

Roadblocks to Low-Carbon Hydrogen

For all the advantages that low-carbon hydrogen presents, certain challenges have prevented it from being implemented on a large-scale basis.

For one, while hydrogen blending does reduce natural gas consumption, hydrogen is extremely light—so the pressure of the natural gas is lower. To offset this, more natural gas must be generated to operate a gas stove at a similar capacity. For example, five percent hydrogen blending displaces natural gas consumption by only 1.6 percent.

Hydrogen blending with natural gas also necessitates the modification of supply pipes, which are typically made of steel. Hydrogen is extremely reactive, and possibilities of pipe deterioration and subsequent leakages are high. Given hydrogen’s combustive properties, this can be extremely dangerous. While hydrogen does dissipate quickly in open air, the risks are amplified in confined spaces.

Additionally, due to its lightness, hydrogen must be pressurized. Adding high pressure levels to an already flammable gas increases the risk of explosion and injury. When not pressurized, hydrogen is transported and stored in a liquified state via cryogenics at temperatures below –253^oC. Liquifying hydrogen is expensive and energy-consuming—as is converting it back to a gaseous state. In fact, nearly 30 percent of hydrogen’s energy content is lost in the process.

Regulations and policies are also a significant hurdle, as they must be established and revised if hydrogen blending is to be commonly used in buildings and homes. Routine inspections for deterioration, cracks and structural integrity of the supply pipes will be vital.

As for transportation, FCEVs and even CNG vehicles necessitate refueling infrastructure to be set in place, which will take time and money. While FCEVs boast numerous advantages, it should be noted that their efficiency is still not as high as those of battery-powered cars. FCEVs are considered to have an overall efficiency between 25–35 percent. Comparatively, battery-powered cars boast efficiency levels of 70–90 percent. Furthermore, FCEVs are noticeably more expensive in comparison to other electric cars. That said, it would be remiss not to highlight that Toyota Mirai’s 2021 model is $9000 cheaper than its 2020 model, which indicates that prices will become more competitive as time goes by.

A Green Future

Despite its challenges, the promise of low-carbon hydrogen is undeniable—especially in a province that already has the necessary infrastructure to establish a green hydrogen network.

As a versatile, combustible gas, hydrogen is already utilized in several industries, with applications including rocket fuel, fuel cells, fertilizers, methanol production and sulfur reduction in diesel refineries. Presently, most hydrogen for industrial usage is grey hydrogen, which lends itself to higher GHG emissions. By refurbishing Ontario’s infrastructure to deliver blue, green and pink hydrogen, GHG emissions would be minimized—ultimately leading to a cleaner energy grid.