Sask is Going Blue: Hydrogen Hub will Promote Further Investment in the Province

May 16, 2022

This news release originally appeared on the Government of Saskatchewan website.

The Government of Saskatchewan is ramping up development work on a potential hydrogen hub in the Regina-Moose Jaw region.

The Ministry of Energy and Resources, Whitecap Resources, and Federated Co-operatives Limited (FCL) will support a foundation report study, developed by the Transition Accelerator and the Saskatchewan Research Council (SRC), to provide investors with a thorough analysis of commercial-scale hydrogen opportunities and synergies with carbon capture utilization and storage (CCUS) infrastructure in Saskatchewan.

"We're a world leader in CCUS and enhanced oil recovery, which have natural connections to blue hydrogen," Energy and Resources Minister Bronwyn Eyre said. "We expect this report to accelerate the private sector's interest in Saskatchewan's emerging hydrogen economy."

The hydrogen market is expanding globally, with increasing use in power generation, transportation fuel, and feedstock in the chemical industry. 'Blue hydrogen' projects are enabled using CCUS technology.

In September 2021, the Government of Saskatchewan announced several new policy commitments to advance CCUS projects, including advancing opportunities for an infrastructure hub in the Regina-Moose Jaw industrial corridor. A hydrogen/CCUS hub in this region could allow for the development of an entire, commercial scale hydrogen supply and demand chain in Saskatchewan.

In October 2021, Whitecap Resources and FCL signed a memorandum of understanding to explore opportunities around CCUS, enhanced oil recovery and CO2 transportation infrastructure.

"Saskatchewan has played a prominent role in establishing CCUS as an industry and we expect it will leverage this expertise to take a leadership role in the new hydrogen economy," Whitecap Resources President and CEO Grant Fagerheim said. "Whitecap and FCL have the opportunity to accelerate the transition to a lower carbon economy through our proposed CCUS infrastructure, which will enable blue hydrogen production at a commercial scale.  We are excited to advance this study to support further expansion across the private sector."

"The potential for a Hydrogen and CCUS Hub in Saskatchewan is exciting as it would create new opportunities for local industry right here in Saskatchewan," Federated Co-operatives Limited CEO Heather Ryan said. "We know that CCUS will play a prominent role in the future of transportation fuels. The research we are investing in will identify the role that hydrogen production will play in the transition to the low carbon economy.  We are excited and proud to partner with the Government of Saskatchewan and Whitecap Resources on this important research project."

The Transition Accelerator (TA) is a pan-Canadian charity that creates positive, transformational system changes that solve societal challenges while moving Canada to reach net-zero greenhouse gas emissions by 2050. TA launched Canada's first two hydrogen hubs in the Edmonton's Industrial Heartland Region and in the southeast Alberta Region.

The Ministry of Energy and Resources will support the Transition Accelerator with a grant of $100,000 to complete a Foundation Report. An additional $50,000 in funding will be provided by Whitecap Resources and FCL.

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