What is green ammonia, and what is it used for?
Aug 13, 2024
Sustainable
In the quest for a sustainable energy transition, renewable hydrogen could be a promising solution for Canada, a territory with vast natural resources and a strong commitment to emissions reduction.
The country has great potential to become a powerhouse in the production and use of renewable hydrogen. With a diverse and prosperous economy, financial stability and leadership in innovation, Canada is a major oil and natural gas producer that is also committed to investing in renewable energy sources.
Hydrogen is a gas that can be obtained from renewable sources, such as wind or hydroelectric power. Among its advantages is that it is a very versatile source of clean energy that can be used in sectors that currently rely on fossil fuels, such as transport and industry.
Canada is a major oil and natural gas producer that is also committed to investing in renewable energy sources
Canada has a natural gas infrastructure and a well-established chemical industry, conditions that can facilitate a transition to a hydrogen economy.
Its government is aware of the importance of renewable hydrogen to its country’s future and has announced a number of initiatives to promote its development. In late 2020, the Hydrogen Strategy for Canada was launched, introducing a framework for the production, distribution and use of green hydrogen across the country. The Ministry of Natural Resources estimates an investment of up to 7 billion Canadian dollars in the short term to grow the domestic hydrogen industry.
The government also plans to invest 1.5 billion Canadian dollars to support clean fuel projects (including renewable hydrogen) and is working on standards for hydrogen production and use to ensure its quality and safety.
Canada has a natural gas infrastructure and a well-established chemical industry, conditions that can facilitate a transition to a hydrogen economy
In addition, strategic plans are being developed at the provincial level, such as in British Columbia, with its Clean BC programme, to achieve climate neutrality by 2050. It outlines its strategy to take advantage of the territory’s location (with easy access to Asian markets) and its gas potential to export blue and green hydrogen.
The private sector is also accelerating investment in clean hydrogen projects, such as the creation of 40 hydrogen refuelling stations, strategically located between Quebec and Vancouver, by the Canadian company Quantum Technology.
Canadian industry has also turned its attention to this energy vector and has commenced projects for the production of hydrogen from renewable sources, as well as technologies for the storage and distribution of this renewable gas.
Canada’s plans in this area could be reinforced by its neighbour and the world’s leading economic power, the United States, which also has an ambitious programme to lead the hydrogen economy.
Canadian industry has turned its attention to this energy vector and has commenced projects for the production of hydrogen from renewable sources
Thus, the whole of North America is positioning itself in this direction, as Mexico also has plans and good conditions to become a hydrogen hub. The three countries agreed to work together in different areas to combat the climate crisis at the last North American Leaders’ Summit on 9-10 January 2023. Under the agreements reached, the three nations are committed to developing a North American renewable hydrogen market, cooperating on R&D and promoting joint projects.
These are not the only international relations Canada is pursuing in this regard; the country has also signed an agreement to supply hydrogen to Germany from 2025, which has been approved by the European Commission. In the words of Ursula Von der Leyen, the opportunities are limitless and the European Union must expand its cooperation with Canada to boost this energy of the future. The agreement with Germany could boost a transatlantic renewable hydrogen transmission network that would take advantage of Canada’s growing LNG exports as a stepping stone to exporting hydrogen.
The hydrogen economy represents an opportunity for Canada, a country that is well positioned to exploit the full potential of this energy carrier. Not only at the energy and economic level, but as a pillar to reinforce sustainability and protect its lush natural wealth.