Hazer Group provides an update on its joint venture project in Vancouver, British Columbia, aimed at developing a commercial plant for hydrogen production.
The project, known as Hazer-BC, aims to scale up production to 2,500 tonnes per annum (tpa) of hydrogen, a significant increase compared to the Commercial Demonstration Plant. FortisBC, a leading Canadian energy utility, will supply the natural gas feedstock and purchase the hydrogen for blending into the Vancouver natural gas pipeline network. Despite the withdrawal of Suncor Energy from the project, Hazer and FortisBC remain committed to its development.
Design and engineering work for the 2,500tpa plant and commercial-scale reactor are progressing as planned. Wood Group is making substantial progress on the Front-End Engineering & Design (FEED) study, which is expected to be completed in August. The reactor technology, developed in collaboration with Hatch, is well advanced, with detailed engineering and early procurement in progress. The project timeline has been adjusted to identify an alternative site, with the Final Investment Decision (FID) now expected in 1H 2024.
The project has received an initial government grant of C$8 million, ensuring support until FID. Post FID, the project will be de-risked, presenting an opportunity to attract new strategic partners. The project agreements framework is being established, with definitive partnering, joint venture, licensing, and commercial agreements in progress.
FortisBC emphasizes its commitment to the project and the transition to clean hydrogen using natural gas as a feedstock. The project aligns with British Columbia’s decarbonization strategy and acknowledges the support of the CleanBC Innovation Fund. Hazer sees North America as a strategic market and considers this flagship project a demonstration of climate leadership.
The Hazer-BC project holds significant potential to contribute to the decarbonization of the industry in British Columbia and beyond. The production of clean hydrogen from natural gas feedstock can accelerate the transition to low-carbon energy sources. The project’s success could attract further investment and open doors for Hazer’s expansion in North America.
