Linde's $2 Billion Investment in Blue Hydrogen Plant Boosts Canada's Position in Global Market
Key Ideas
  • Linde's $2 billion investment in a blue hydrogen plant in Alberta will use natural gas with carbon capture to limit emissions, supporting clean hydrogen production.
  • The project will supply hydrogen to Dow's 'Path2Zero' project in Fort Saskatchewan, aiming for net-zero emissions in the ethylene plant.
  • Canada aims to become a key player in low-carbon hydrogen, with supportive policies and competitive pricing attracting interest from markets like Europe and California.
  • The investment could spark further developments in hydrogen transport infrastructure and CCS technologies, enhancing Canada's global hydrogen market presence.
Linde has announced a $2 billion investment in building a blue hydrogen plant in Alberta, using natural gas with a carbon capture and storage system to limit CO2 emissions. The facility, set to capture over two million tonnes of carbon annually, will be one of Canada's largest clean hydrogen producers. Linde plans to supply hydrogen to Dow's 'Path2Zero' project in Fort Saskatchewan, supporting Dow's goal of achieving net-zero emissions in its ethylene plant. The hydrogen produced is expected to cater to various industrial customers seeking emission reduction. Canada is strategically positioning itself as a major player in low-carbon hydrogen, targeting markets in Europe and Asia. Despite challenges in ammonia rail transport, Alberta and British Columbia are collaborating with industry to enhance logistics infrastructure for exports. The country's commitment to the hydrogen sector is evident through supportive policies and partnerships, including a $300 million trade corridor with Germany. Competitive prices, like those in Western Canada, ranging from $4.50 to $5 per kilogram for heavy mobility sectors, make neighboring markets like California attractive for clean hydrogen. The Linde Alberta plant is projected to be operational by 2028, with potential to drive further investment in hydrogen infrastructure and CCS technologies, strengthening Canada's global hydrogen market presence. Industry collaboration is deemed crucial in navigating this evolving landscape.
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