FortisBC says it has successfully tested new turquoise hydrogen production equipment and is now looking to develop a commercial-scale project.
In 2022, FortisBC partnered with Alberta's Suncor Energy (TSX:SU) and Australia's Hazer Group (ASX: HZR) to build a methane pyrolysis pilot plant that would make hydrogen from natural gas, with synthetic graphite produced as a CO2 byproduct.
Originally, a small pilot plant was to be built at Suncor’s Burrard terminal in Port Moody, but in 2023 Suncor backed out of the partnership, so FortisBC and Hazer ended up building a new test rig in Kitchner, B.C.
The $11.25 million pilot project received $8 million from the CleanBC Industry Fund.
The new equipment is not producing any hydrogen or graphite, said John Quinn, senior manager of renewable and low carbon fuels for FortisBC.
“The purpose of the pilot rig in Kitchner is to test some important technical or engineering parameters associated with the future project,” Quinn said. “It is intended to mimic key aspects of the Hazer process that will produce hydrogen and graphite in that future much bigger commercial plant here in B.C.”
FortisBC is interested in using low-carbon hydrogen as a blending fuel to reduce the carbon intensity of its natural gas. The synthetic graphite that would be produced as a byproduct – carbon in solid form – has potential applications in making anodes for batteries and as a low-carbon alternative to metallurgical coal in making steel.
FortisBC and Hazer are now looking for a potential site in B.C. for a commercial scale Hazer hydrogen plant.
“If we’re successful, then the project that Fortis and Hazer are pursuing here in B.C. would be the first of its kind globally at that scale,” Quinn said.
He said it may take one to two years to select a site and make a final investment decision.
