AUC releases report on inquiry into hydrogen blending in natural gas distribution systems

Alberta is the largest producer of hydrogen in Canada and has been producing hydrogen for more than 50 years. As the most abundant element in the universe, hydrogen can be burned for energy or used in fuel cells, emitting only water with the potential to be a major source of clean energy for the province and the rest of the world. This technology represents another solution to our energy needs and offers significant potential for meeting greenhouse gas emission reduction targets while minimizing impacts to the environment.

The government of Alberta’s Hydrogen Roadmap identifies the province having the potential to significantly reduce greenhouse gas emissions by 2030. One of these methods for reducing emissions is through enabling hydrogen blending into natural gas distribution systems.

To assist the government of Alberta’s efforts for a lower-emission future, the AUC is pleased to release a report on its findings, observations and considerations of it’s Hydrogen Inquiry exploring hydrogen blending in natural gas distribution systems. It’s another way the AUC continues to deliver innovative regulatory solutions for Alberta.

Through a public proceeding, the AUC’s report explores stakeholder feedback and the AUC’s own expertise on a variety of hydrogen blending-related issues, including:

• Proposed amendments to relevant legislation.
• Allocation of responsibilities of regulatory agencies.
• Safety.
• Hydrogen blending thresholds.
• Delivery of services to rural natural gas consumers.
• Regulated and competitive segments of hydrogen blending.
• Factors that regulatory agencies should consider when assessing hydrogen blending.
• Areas for future study.

The scope of the AUC’s inquiry was introduced in Bulletin 2022-05 and included gathering information, and making findings, providing observations or considering options on:

• The role of regulated natural gas distribution systems and unregulated competitive markets for hydrogen blending into natural gas distribution systems up to 20 per cent blending by volume.
• The impacts of blended hydrogen into low-pressure natural gas distribution systems.
• The safe and reliable delivery of blended hydrogen through natural gas distribution systems, including potential harmonization with municipal or other relevant safety standards.
• Addressing regulatory ambiguity, removing unnecessary regulatory barriers, and improving certainty as required to enable hydrogen blending into natural gas distribution systems.
• Areas for future study relating to hydrogen blending into natural gas distribution systems.

The AUC thanks all stakeholders who participated in this proceeding and shared their expertise and will continue to work with the provincial government and other stakeholders to further deliver on the findings of the inquiry.

All submissions and documents considered in this inquiry are publicly available in the AUC’s eFiling System under Proceeding 27256.