IEPS has examined several options for both the near- and longer-term transportation of H2 from the facility to potential customers. Options examined have included the use of both new pipelines and roads (trucks).
Phase One of the Kitsim H2 Project is scheduled to produce approximately 5,700 kgs of hydrogen daily. The H2 transportation options under consideration currently include:
- Building a new pipeline built specifically to carry to H2;
- Road transport of liquid H2 in cryogenic tankers;
- Road transport of gaseous (compressed) H2 in compressed gas cylinders; or
- Road transport of H2 using Liquid Organic Carrier Transport (LOCT); and
- Relocation of the facility proximal to a customer or customers.
All of the above transportation options have variable impacts on the delivered price of H2. The first four result in material but variable costs of transporting H2 from the facility to an end user. The use of a dedicated pipeline, medium to longer term should be relatively more economic for larger volumes delivered to a single customer and would be particularly fit to purpose for a large fertilizer or similar industrial facility.
Road transport on the other hand is more flexible and would allow the Project to deliver green H2 cost effectively to multiple customers in Alberta. Road transport would be particularly useful in meeting the needs of smaller energy and agricultural industry facilities seeking to blend green H2 into their natural gas streams.
The fifth option, relocation of the site proximal to one or more large customers would effectively eliminate transportation costs but would potentially increase other costs (e.g. land costs) which have been optimized at the current site. However, IEPS is more than open to considering this option if it meets specific customer needs.
In the near-term road transport of compressed H2 gas appears to offer the most efficient and economic option for the transportation of the relatively small volumes from Phase 1. LOCT appears to offer advantages over compressed gas but is not as well established and further work is required.
For subsequent Project phases producing larger volumes of H2, the use of either common carrier natural gas or dedicated hydrogen pipelines are most likely to be the preferred option when these become available. Rail transport is another option that will be considered in the future as markets are defined and volumes increase.
Future Transportation Issues
Key transportation issues for the development of H2 in Alberta include the current absence of a dedicated hydrogen pipeline transportation system and lack of access to the existing natural gas transportation and distribution system. With respect to the latter option discussions with regional carriers suggest that although this option is common in other jurisdictions outside Canada, it is unlikely to be made available near term in Alberta.