1. The Future of
Hydrogen & RNG
in Canada
Part 1: The Potential of Hydrogen & RNG to
Decarbonize Canada’s Energy Systems
September 22, 2020
#H2RNG

2. Linda Coady
Opening remarks
Executive Director
Pembina Institute

3. 3
Leading Canada’s transition
to clean energy
The Pembina Institute is a non-profit think-tank that
advances a prosperous clean energy future for Canada
through credible policy solutions.

4. Presenting partner
Supporting partners

5. Tahra Jutt
Moderator
Director, Clean Economy (B.C.)
Pembina Institute

6. Richard Carlson
Speaker
Director, Energy Policy and Energy
Exchange
Pollution Probe

7. Sabina Russell
Speaker
Principal
Zen Clean Energy Solutions

8. Sarah Stadnyk
Speaker
Manager, Business Development and
Communications
Canadian Biogas Association

9. The Future of
Natural Gas
in Canada
Pembina Webinar
September 22, 2020

10. About Pollution Probe
• Pollution Probe is Canada’s oldest
“homegrown” environmental NGOs
(50 years in 2019!)
• Future of Natural Gas study was
completed in 2019
• Project was funded in part by the
natural gas downstream industry

11. Electricity , 65
Natural gas, 134
Motor gasoline,
108
Oil, 93
Aviation fuels, 20
Other, 51
Residential wood,
4
Electricity
20%
Natural Gas
29%
Motor Gasoline
18%
Oil
15%
Aviation
Gasoline
0%
Aviation Turbo
Fuel
3%
Still Gas and
Petroleum Coke
5%
Wood Waste
and Pulping
Liquor
4%
Other
4%
Residential Wood
2%
Natural gas is a large part of our energy systems
Secondary energy consumption (2017) GHG emissions by fuel source (2017)

12. Natural gas
use (2017)
Other (non-
energy), 851
Power
generation,
644
Industrial,
1,508
Road
transport, 5
Pipeline , 154
Agriculture,
39
Residential,
659
Commerical/
institutional,
531

13. Industrial
demand for
gas (2017)
Mining and oil
and gas
extraction, 807
Pulp and
paper, 83
Refined
petroleum
products, 55
Chemicals and
fertilizers, 174
Other, 370
Construction,
19

14. Electricity
40%
Natural
Gas
44%
Heating
Oil
4%
Other
1%
Wood
11%
Space
Heating
62%
Water
Heating
19%
Appliances
14%
Lighting
3%
Space
Cooling
2%
Residential energy demand and GHG emissions (2017)
Energy consumption (2017) GHG emissions by fuel source (2017)

15. What can we do?
Start with efficiency and
electrification
Easier to replace when you are using less
Electrify where you can
Move to low-carbon gases
Renewable natural gas
Hydrogen

16. Gas provides flexibility

17. Peak ratio with all electric space heating
Source: Waite and Modi, “Electricity Load Implications of Space Heating Decarbonization Pathways,” Joule, February 2020

18. IEA Pathway to New Zero

19. Switching to low-carbon gases
Renewable Natural Gas
• Wet wastes: 5-10%
• Gasification: Unknown ~12-50%
• Part of solution
Hydrogen
• Rainbow of hydrogen: Green v. blue v. pink (plus brown)
• Blending: 20% by volume is ~10% by energy content
• Trials: up 20% blending in Europe; 3-5% blending trials in Canada
• Synthetic methane

20. Switching to low-carbon gas: Costs

21. Overview of challenge
• Lots of pipe in the ground
• Lots of benefits:
• Storage
• Flexibility
• Industrial processes
• Merging silos: Electrons and molecules in hybrid systems
• Timelines are critical: We need to start now
• Not a question of “can the gas system play a role?” but more of a “will
the gas system play a role?”

22. Thank you!
Richard Carlson
Director, Energy Policy
rcarlson@pollutionprobe.org
Twitter: @RichardKCarlson
• https://www.pollutionprobe.org/future-hold-natural-gas-
report/
• Follow us on Twitter: @PollutionProbe

23. Hydrogen’s Potential to
Decarbonize Natural Gas
Pembina Hydrogen and RNG Webinar
September 22, 2020
Presented by: Sabina Russell, Principal

24. 2
About ZEN
Growing clean energy ideas
◆ Specialty consulting firm in Vancouver, BC in 5th year of business
◆ Zen works with clients to commercially advance and deploy clean energy solutions
◆ >80% of business relates to hydrogen and zero emission transportation
◆ Have helped clients raise >$100 million in non-dilutive funding to deploy clean energy solutions
◆ Combination of technical and business expertise, underpinned with project management skills, makes
Zen uniquely positioned to guide complex projects from inception to implementation
Hydrogen Strategy Hydrogen Projects Zero Emission Transit
ZECAP Project

25. 3
Outline
◆ Hydrogen basics
◆ Why Hydrogen?
◆ Hydrogen Production & Use
◆ Canada’s Starting Point
◆ Decarbonization of natural gas
◆ Moving forward – opportunities, challenges, enablers

26. 4
Benefits
Versatile energy carrier
➤ Electrochemical conversion to
produce power
➤ Combustion to produce heat
➤ Use directly as feedstock
Carbon free at point of use
➤ Important decarbonizing vector
Can be produced from a
variety of feedstocks
Can be transported long
distances, stored indefinitely
➤ Produced when and where most
convenient
➤ shipped by pipeline, road, rail, or
water
High energy density = well
suited to intensive duty cycles
What is Hydrogen?
Benefits

27. 5
Canada’s Positioning & Benefits
◆ Unique Advantages
Why Hydrogen?
Main drivers to transition are environmental
◆ Meeting decarbonization goals
➤ 2030 commitment: 511 Mt (218.5 Mt reduction)
➤ 2050 target: net-zero through emissions reduction & offset (729.5 Mt, 2018 ref.)
◆ Improving air quality
Rich in Feedstocks
Leading Innovation & Industry Position
Strong Energy Sector
Head Start
Established International Collaborations
Energy Export Channels to Market
Decarbonization
Clean Air
Energy Resilience
Economic Growth
Transformational Opportunity for
Petroleum Sector
◆ Benefits

28. 6
Hydrogen Production & Use
Clean Hydrogen Sources
◆ Clean electricity & water
◆ Fossil fuels
◆ Biomass
◆ Industrial by-product
Hydrogen Uses:
◆ Transportation fuel
◆ Fuel for power production
◆ Heat for buildings and industry
◆ Feedstock for industrial processes
Image courtesy of CHFCA

29. 7
Cost and CI are Key Metrics
Hydrogen Production Pathways
Reference: BC Hydrogen Study
All low CI
pathways need
to be pursued
to meet 2050
demand in net
zero scenario

30. 8
Broader view – ROW & Canada
BC Grid
AB Grid
0
7
14
21
28
36
0
50
100
150
200
250
SMRw/o
CCUs
SMRw/50%
CCUS
SMRw/90%
CCUS
Pyrolysis
Gasification
Wind:Grid
Connected
Wind:Off-
Grid
Nuclear
Solar
Hydro
NGPowered
Grid
ActualGrid
Fossil Fuel Biomass Electrolysis
CarbonIntensity(kg-CO2e/kg-H2)
CarbonIntensity(g-CO2e/MJ)
Range
IEA
Transition Accelerator
BCBN

31. 9
Use as a Heating Fuel
$1.5/kg
$1/L
$5/GJ
$150/tonne-CO2 $15/GJ
$0.06/kWh
$0.11/kWh
$3.5/kg
$1.2/L
$18/GJ
$300/tonne-CO2
$30/GJ
$0.18/kWh
$0.18/kWh
$0
$10
$20
$30
$40
$50
$60
H2 Fuel Oil NG NG + DAC RNG Elec.
Resistive
ASHP*
Heating
Cost($/GJ-equivalent)
Cost comparison
CA Average Grid, 49
-175
-150
-125
-100
-75
-50
-25
0
25
50
75
100
H2 Fuel Oil NG +DAC RNG Elec. Resistive ASHP
Heating
(Natural Gas Baseline)
GHGReduction(g-CO2e/MJ-NG
Displaced)
GHG Reduction Potential

32. 10
Canada’s Starting Point

33. 11
Hydrogen as Decarbonization Vector in NG Grid
• Hydrogen can have an critical role in the future of the NG industry in Canada as work to GHG neutrality, utilities can play key role
• Blending of 5-20% H2 in the gas network is technically feasible in near-term, given sufficient supply
• Dedicated pipelines to enable 100% H2 distribution in regions will be important in longer term
• By 2050, H2 could make up large portion of the fuel in the gas network by volume and serve, along with electricity, as the one of
the main carriers in the energy system
Opportunities
Safety and reliability must be successfully proven in pilot
stage before technology can be fully adopted
NG is currently low cost in many parts of Canada, and
while H2 can compete with RNG the higher cost is a
challenge particularly for industry
Lower volumetric energy density & radiant heat and
equipment limitations complicate the direct substitution
of H2 into industrial processes
Lack of standards and research into defining blending
limits in Canada
Challenges
§ Blending pilot projects needed to explore blending limits & drive codes and standards development – Canada is lagging
§ Define plan & approach to safely increase H2 blending percentages, include regulators, AHJs and international organizations and
standards bodies
§ Increase awareness around hydrogen as option for low carbon heating, e.g. with municipalities & develop suite of public tools
(e.g. TCO model) & resources to help end-users evaluate H2 options
§ Expand pilots for H2-integrated mini-grids at industrial sites & along strategic transportation corridors to pool supply / demand
§ Increase R&D into end-use equipment and applications including boilers, safety and monitoring equipment, and materials
Levers for Success
9.9

34. Thank You
Sabina@zenenergysolutions.com
604-723-0040

35. Building the Biogas Sector With You
The Potential of RNG to Decarbonize Canada’s Energy Systems
The Future of Hydrogen & RNG in Canada – September 22, 2020

36. Building the Biogas Sector With You
About The Canadian Biogas Association
Building the Biogas Sector With You

37. Building the Biogas Sector With You
Who We Are
The Canadian Biogas Association
is the voice of the biogas/RNG
industry.
Since 2008, our membership has grown to over
140, including farmers, municipalities,
technology developers, consultants, utilities,
finance and insurance firms, affiliate
organizations.
www.biogasassociation.ca

38. Building the Biogas Sector With You
What We Do
We advocate for building the Canadian biogas/RNG industry with current
industry and organizational objectives focused in the following areas:
Advocacy
I. Increase biogas/RNG market opportunities
II. Improve the biogas/RNG development cycle
Education
III. Sustain biogas/RNG project operational longevity and proficiency
IV. Enhance industry awareness, research and knowledge

39. Building the Biogas Sector With You
Renewable Natural Gas 101

40. Building the Biogas Sector With You
What is Biogas and Renewable Natural Gas?
Anaerobic digestion (AD)
Biological process of
breaking down organic
matter to create biogas
BIOGAS
Renewable source of methane gas
RENEWABLE NATURAL GAS (RNG)
Refined (upgraded) biogas,
interchangeable with natural gas in most
applications
Digestate
A nutrient-rich fertilizer as bi-product
+

41. Building the Biogas Sector With You
Sources of Biogas/RNG

42. Building the Biogas Sector With You
RNG Applications
Blended in existing natural gas
networks
Transportation fuel On-site energy

43. Building the Biogas Sector With You
RNG Environmental Benefits
• RNG reduces GHGs and addresses climate
change in two ways:
1. Captures methane which would have otherwise
been released into the atmosphere untreated.
Methane is 84 times more potent than carbon
dioxide over a 20-year period
2. The methane captured in the form of BIOGAS is
used as a renewable fuel and displaces the
consumption of fossil fuels.
• Digestate replaces commercial fertilizer and
returns organic matter to the soil

44. Building the Biogas Sector With You
Renewable Natural Gas in Canada

45. Building the Biogas Sector With You
Biogas and RNG in Canada

46. Building the Biogas Sector With You
Biogas and RNG in Canada
www.biogasassociation.ca/about_biogas/projects_canada

47. Building the Biogas Sector With You
RNG Development in Canada
0
2
4
6
8
10
12
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
BC QC ON

48. Building the Biogas Sector With You
RNG Projects in Canada
Province Operating In Development
British Columbia 5 4
Alberta 0 2
Ontario 2 4
Quebec 4 11
Over 3 million GJs
of RNG in
development
Over 5 million GJs
of RNG produced
annually

49. Building the Biogas Sector With You
RNG Programs in Canada
• British Columbia, Quebec, Ontario are leading the way with
RNG policy and programs.
Province Date of RNG Program Cost per GJ Number of Projects
British Columbia 2007 Up to $30 5 (4 in development)
Quebec 2017 $7-22 4 (11 in development)
Ontario Proposed Voluntary
RNG Program in
development
TBD 2 (others expected soon)

50. Building the Biogas Sector With You
Challenges and Opportunities

51. Building the Biogas Sector With You
Challenges Limiting Future Development
• Approvals & Connection
• Siting, grid access, public consultation,
studies, NIMBY
• Market competition
• Provincial and state incentives upwards of
$30/GJ
• Limits on feedstock
• Cheaper disposal options
• Cost
• Low commodity pricing of natural gas and
high capital investments in technology

52. Building the Biogas Sector With You
Unlocking the Value of RNG
• What elements are needed to advance the
biogas/RNG market:
⎼ Tangible Target/Goal è A renewable content
requirement
⎼ Strong Market Pullè Reasonable and stable gov’t
policy and programs to support sustainable, long-
term product demand
⎼ Clear Market Mechanisms è Well-defined approach
that sends strong signal and enables broad
participation by industry

53. Building the Biogas Sector With You
Educational Resources

54. Building the Biogas Sector With You
CBA Resources
• The CBA has developed
biogas and RNG
resources to enhance
awareness and
knowledge of the
industry
• Available on our
website
biogasassociation.ca

55. Building the Biogas Sector With You
Biogas makes better gas.
• CBA launched a public awareness
campaign to communicate biogas
and RNG as a sustainability means
for industry, municipalities and agri-
businesses
• Visit bettergas.ca for resources and
biogas messaging

56. Building the Biogas Sector With You
Thank You!
Sarah Stadnyk
sstadnyk@biogasassociation.ca
Tel: (647) 705-2219
www.biogasassociation.ca

57. Poll

58. Questions

59. The Future of
Hydrogen & RNG
in Canada
Part 2: The Role of Utilities in Accelerating
Hydrogen & RNG Adoption
September 29, 2020
#H2RNG
Upcoming
Event

60. Presented by the
Pembina Institute
pembina.org
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