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Wilkinson hydrogen

Can Green Hydrogen Transform Atlantic Canada’s Steel Industry?

Anela DoksoBy Anela Dokso07/08/20243 Mins Read
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Green hydrogen is being promoted as a cornerstone for a sustainable energy future in Atlantic Canada, with projections of significant economic and environmental benefits. By 2030, it is estimated that the region could see nearly 1,500 new jobs and over $35 billion in investments.

Green hydrogen’s potential in ammonia production is highlighted as a key opportunity for Atlantic Canada. Ammonia, crucial for fertilizers, traditionally relies on fossil fuels. Green hydrogen could decarbonize this process, contributing to global agricultural sustainability. However, the cost of green hydrogen production remains a significant barrier. The competitive edge over traditional methods will depend on substantial technological advancements and cost reductions.

While ammonia production may offer career opportunities for chemical engineers, particularly those transitioning from the oil and gas sector, the scale of job creation needs realistic evaluation. The anticipated job growth may not match the industry’s historical performance, which often overestimates employment impacts in green sectors.

Replacing conventional hydrogen with green hydrogen to produce ammonia can lead to substantial CO2 reductions. However, the economic feasibility of this transition remains questionable. The higher production costs of green ammonia could impact its competitiveness in global markets.

The potential for job creation in fertilizer production is significant, with facilities ranging from small operations employing 25 people to large plants requiring up to 2,000 employees. Yet, the substantial investment needed for larger plants raises concerns about the return on investment and the actual number of sustainable jobs created.

Green Steel: A Viable Future?

Green hydrogen can revolutionize steel production through Direct Reduced Iron (DRI) processes, significantly reducing emissions. However, the success of green steel hinges on the availability and cost of green hydrogen and renewable energy sources. While Newfoundland and Labrador’s high-purity iron ore reserves provide an upstream advantage, the economic and environmental benefits need rigorous validation.

A new green steel mill in Atlantic Canada could bring billions in investment and create thousands of jobs. However, the actual economic impact will depend on overcoming the substantial financial and technological challenges associated with green hydrogen production and infrastructure development.

Green hydrogen offers potential decarbonization solutions for heating and power production. However, its application in residential and industrial heating faces significant safety, cost, and regulatory hurdles. Electrification remains a more established and efficient alternative in many cases.

Green hydrogen could decarbonize port operations by replacing diesel with hydrogen fuel cells. While promising, this transition requires extensive infrastructure investments and technological advancements to ensure feasibility and cost-effectiveness.

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