The IEPS Hydrogen Project is designed to take full advantage of the size, scalability, and operational flexibility of electrolyzers. A distributed production approach is proposed, with smaller plants built at discrete sites close to customers throughout southern Alberta.
The initial production rate (2,100 tonnes of LCI hydrogen per year per facility) is based on a proven electrolyzer design already commercially available. It is large enough to take full advantage of economies of scale while small enough to reduce the risk of exceeding market demand during the early stages.
Using standardized plant designs will allow IEPS to significantly reduce construction costs while locating each new plant as close to customers as practical will significantly reduce hydrogen transportation costs. At the same time, multiple plant locations will create operational redundancy, better allowing unexpected outages at any one plant to be addressed.
A phased development approach at each site is also proposed. Plant sites will be selected with future growth factored in and since electrolyzers are inherently scalable future growth can be easily accommodated.
A phased development approach also allows IEPS to take advantage of future technology improvements and associated cost reductions. These are expected to be substantive, mirroring to some extent the technical and cost improvements seen in renewable power generation.