FortisBC has successfully tested a new hydrogen production process, advancing British Columbia’s transition to clean fuels and reinforcing Canada’s national hydrogen economy strategy.

FortisBC, Hazer Group eyeing methane pyrolysis hydrogen plant in B.C.

FortisBC has successfully tested new turquoise hydrogen production equipment and is now developing a commercial-scale project.

In 2022, FortisBC partnered with Alberta’s Suncor Energy (TSX:SU) and Australia’s Hazer Group (ASX: HZR) to build a methane pyrolysis pilot plant that would make hydrogen from natural gas, with synthetic graphite produced as a CO2 byproduct.

Initially, a small pilot plant was to be built at Suncor’s Burrard terminal in Port Moody. However, in 2023, Suncor backed out of the partnership, and FortisBC and Hazer ultimately built a new test rig in Kitchener, British Columbia.

The $11.25 million pilot project received $8 million from the CleanBC Industry Fund.

The new equipment is not producing any hydrogen or graphite, said John Quinn, senior manager of renewable and low-carbon fuels for FortisBC.

“The purpose of the pilot rig in Kitchner is to test some important technical or engineering parameters associated with the future project,” Quinn said. “It is intended to mimic key aspects of the Hazer process, which will produce hydrogen and graphite on a much larger scale in a future commercial plant here in B.C.”

FortisBC is interested in using low-carbon hydrogen as a blending fuel to reduce the carbon intensity of its natural gas. The synthetic graphite produced as a byproduct – in solid form – has potential applications in making anodes for batteries and as a low-carbon alternative to metallurgical coal in steel production.

FortisBC and Hazer are now seeking a potential site in British Columbia for a commercial-scale Hazer hydrogen plant.

“If we’re successful, then the project that Fortis and Hazer are pursuing here in B.C. would be the first of its kind globally at that scale,” Quinn said.

He said it may take one to two years to select a site and make a final investment decision.

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