Linde’s announcement of a $2 billion investment to supply clean hydrogen to Dow’s Fort Saskatchewan Path2Zero Project marks a significant development in the hydrogen energy sector.
The company promises a world-scale integrated hydrogen and atmospheric gases facility in Alberta, set to be the largest in Canada.
Linde’s new facility will employ autothermal reforming (ATR) combined with its proprietary HISORP® carbon capture technology to produce clean hydrogen. ATR is a well-established process, but its environmental benefits heavily rely on the efficiency of the carbon capture technology. Linde claims that their complex will sequester over 2 million metric tons of CO2 annually, but the effectiveness of this capture process needs to be rigorously tested at scale. Moreover, the broader question remains: How does this approach compare to other emerging hydrogen production technologies, such as electrolysis powered by renewable energy?
Linde’s partnership with Dow is touted as a significant step toward decarbonizing Dow’s Fort Saskatchewan site, particularly its ethylene cracker and derivatives operations. However, it’s important to recognize that while hydrogen can play a role in reducing emissions, the overall impact depends on how effectively it is integrated into existing industrial processes. The transition to net-zero emissions requires not just new technology but also a comprehensive strategy that addresses all sources of emissions within the industrial ecosystem.
The economic feasibility of Linde’s project is another critical factor. With a $2 billion investment, the success of this venture will depend on securing reliable and long-term off-take agreements, as well as the cost-competitiveness of the hydrogen produced. While Linde has a history of executing large-scale projects, the global hydrogen market is still in its early stages, with uncertainties surrounding future demand and regulatory frameworks. It remains to be seen whether this project will be economically sustainable in the long term.
