Shell Canada Limited and Mitsubishi Corporation announced plans to collaborate on a low-carbon hydrogen facility near the Shell Energy and Chemicals Park Scotford in Alberta’s Industrial Heartland. The low-carbon hydrogen will be produced via a natural gas feedstock and exported mainly to the Japanese market to produce clean energy.
The first phase of the project aims to produce approximately 165,000 tons per annum of hydrogen with upside to increase production depending on considerations over future phases. The hydrogen will be converted to low-carbon ammonia for export to Asian markets.
Per the joint announcement from Shell and Mitsubishi, the location was chosen due to availability of abundant natural gas resources, proven CO2 storage capacity, and shared infrastructure opportunities. By co-locating next to Shell Scotford, in Alberta’s Industrial Heartland, both companies will explore potential synergies such as land use and utilities integration. Close communication with stakeholders will be a key principle as the project proceeds in its development.
“By locating in Alberta’s Industrial Heartland, with access to feedstocks, world-class infrastructure, and existing carbon capture technologies, this project announcement reinforces the tremendous value proposition of our region for companies looking to advance their ESG and low-carbon goals,” says Mark Plamondon, Executive Director of Alberta’s Industrial Heartland Association.