Canadian Utilities Limited, an ATCO company, has been awarded $2.8 million in funding from Emission Reductions Alberta's Natural Gas Challenge to build a first-of-its-kind hydrogen blending project in Fort Saskatchewan, Alberta, Canada.

According to company officials, the Canadian Utilities' project will use hydrogen derived from domestically-produced natural gas, with the intent to eventually leverage Alberta's existing carbon capture and sequestration infrastructure to store emissions associated with the production process.

Engaging with customers and the community of Fort Saskatchewan will be integral to the project, company officials said. Canadian Utilities will work diligently to create awareness about the safety of hydrogen, environmental benefits and the considerable economic potential. The Fort Saskatchewan Blending Project is expected to get underway in September with commercial and community activities. Construction is planned to begin the first quarter of 2021.

“Once complete, the project will be Canada's largest hydrogen blending project, injecting up to five per cent hydrogen by volume into a section of Fort Saskatchewan's residential natural gas distribution network, lowering the carbon intensity of the natural gas stream for its customers,” the company said.

"Affordably decarbonizing the production of heat is vital to achieve our long-term emissions and energy goals, particularly in our cold Canadian climate, and hydrogen can play a powerful role," said Siegfried Kiefer, President & CEO, Canadian Utilities. "This project is an important first step for Alberta, which has all the ingredients needed to be a leader in the hydrogen economy, including the ability to produce near zero-emissions hydrogen at a lower cost than virtually any other jurisdiction in the world."

"This project will not only create jobs, but a roadmap for hydrogen in Alberta, using low-cost, responsibly produced natural gas while leveraging the province's existing investment in carbon capture technology," said George Lidgett, Executive Vice President and General Manager, Utilities, Canadian Utilities. "Our vision is to enable Western Canada's world-class natural gas industry to grow in tandem with Alberta's hydrogen economy, including supplying eventual exports to global markets where demand is steadily growing."

With approximately 4,600 employees, assets of $20 billion, and two million customers around the world, Canadian Utilities Limited, an ATCO company, is a diversified global energy infrastructure corporation delivering essential energy services and innovative business solutions in Utilities, Energy Infrastructure and Retail Energy.

"The City is pleased to be the site of this proposed hydrogen blending project," said Fort Saskatchewan Mayor Gale Katchur. "This project demonstrates Fort Saskatchewan's commitment to sustainability and reducing emissions, while supporting our local economy. We look forward to working with ATCO."