VulcanX and FortisBC sign agreement to support new hydrogen technology

Hydrogen could help meet British Columbians’ energy needs, provincial government says

SURREY, British Columbia, August 14, 2024 /CNW/ – FortisBC Energy Inc. (FortisBC) and VulcanX Energy Corp. (VulcanX) have signed a financing agreement to support the development of a hydrogen pyrolysis technology that will enable the production of zero-emission hydrogen and solid carbon from natural gas at low cost. FortisBC, through its Clean Growth Innovation Fund, is providing financing to VulcanX to develop its proprietary technology.

VulcanX Demonstration Plant (CNW Group/FortisBC Energy Inc.)

“We are pleased to partner with companies like VulcanX through the Clean Growth Innovation Fund to support the development of new technologies that can be used to produce hydrogen,” he said. Joe MazzaVice President, Energy Supply and Resource Development, FortisBC. “We believe hydrogen has the potential to play a significant role in a lower-carbon energy future and can help meet the energy needs of British Columbians while supporting the goals of the province’s CleanBC strategy.”

The FortisBC gas system plays a role in reducing greenhouse gas emissions by switching from conventional natural gas to renewable and low-emission gases,¹ like renewable natural gas² (RNG) and in the future hydrogen.

The Greenhouse Gas Reduction (Clean Energy) Regulation Amendments (GGRR) authorized under the Clean Energy Act allow utilities such as FortisBC to participate in the creation and development of the hydrogen sector in British Columbia. Through the GGRR, FortisBC can directly invest in the production of hydrogen as well as the distribution of it as an energy source.

“Collaborations between innovative companies like VulcanX and FortisBC are helping to advance the clean energy sector in British Columbia,” he said. Josie OsborneMinister of Energy, Mining and Low Carbon Innovation. “It’s exciting to see ongoing sector collaborations that reduce emissions and create a healthier, more sustainable environment for British Columbians.”

VulcanX is a spin-off company from MéridaLabs in University of British Columbia. VulcanX has developed a technology to separate natural gas into its hydrogen and solid carbon components. The FortisBC funding will be used to support front-end engineering and detailed design of a potential facility capable of producing up to one tonne of hydrogen per day. The technology is currently being tested by VulcanX at a demonstration facility in Fort Saskatchewan, Alberta.

“Technological innovation can make British Columbia strong, Canada and the world to achieve our emissions reduction goals and do it cost-effectively,” said Dr. Omar E. HerreraCEO of VulcanX. “FortisBC is putting their words into action by supporting us through the Clean Growth Innovation Fund. We at VulcanX are excited to get this project underway.”

For more information on FortisBC and hydrogen, please visit fortisbc.com/hydrogen.

For more information on hydrogen, solid carbon and VulcanX, please visit volcanox.ca.

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¹ FortisBC uses the term renewable and low-emission gas to refer collectively to the low-emission gases or fuels that a utility may purchase under the Greenhouse Gas Reduction (Clean Energy) Regulation, namely: renewable natural gas (also referred to as RNG or biomethane), hydrogen, syngas (from wood waste), and lignin. FortisBC’s renewable and low-emission gas portfolio currently consists only of renewable natural gas. Other gases and fuels may be added to the program over time. Depending on the source, all of these gases have varying levels of life-cycle carbon intensity. However, all of these gases are low-emission compared to the life-cycle carbon intensity of conventional natural gas. The current RNG burner tip emission factor is 0.27 grams of carbon dioxide equivalent per megajoule of energy (gCO₂e/MJ) and the current life cycle emissions of the renewable and low-emission gas portfolio for stationary combustion are -22 gCO₂e/MJ. This is below British Columbia’s low carbon threshold for life cycle carbon intensity of 30.8 gCO₂e/MJ in accordance with the provisions of the 2024 Greenhouse Gas Reduction Regulation.

² Renewable natural gas (also called RNG or biomethane) is produced in a different way than conventional natural gas. It comes from biogas, which is created by the decomposition of organic waste from landfills, agricultural waste, and sewage from treatment plants. The biogas is captured and purified to create RNG. When RNG is added to the North American natural gas system, it is mixed with conventional natural gas. This means that we are not able to direct RNG to a specific customer. However, the more RNG that is added to the gas system, the less conventional natural gas is needed, which reduces fossil fuel consumption and overall greenhouse gas emissions.

About VulcanX Energy Corp.

VolcanoX is not your typical startup. VulcanX spun off from MéridaLabs in University of British Columbia with a risk-free demonstration plant. Using a bubbling technique and a state-of-the-art molten metal recirculation system, natural gas is introduced from the bottom, passing it through the molten metal to ensure consistent and efficient production. The reaction that takes place in this high-temperature, oxygen-free environment converts the natural gas into its basic components: hydrogen and solid carbon. This process, known as pyrolysis, is key to VulcanX’s efficient production method. For more information about VulcanX Energy Corp., visit https://vulcanx.ca.

About FortisBC Energy Inc.

FortisBC Energy Inc. is a regulated utility company dedicated to providing safe and reliable energy, including natural gas, renewable natural gas, and propane. FortisBC Energy Inc. employs approximately 2,096 British Columbians and serves approximately 1,075,595 customers in British Columbia. FortisBC Energy Inc. owns and operates approximately 51,200 kilometers of natural gas transmission and distribution pipelines. FortisBC Energy Inc. is a subsidiary of Fortis Inc., a leader in the North American regulated power and natural gas industry. FortisBC Energy Inc. uses the FortisBC name and logo under license from Fortis Inc. For more information about FortisBC, visit www.fortisbc.com. For more information about Fortis Inc., visit www.fortisinc.com.

SOURCE FortisBC Energy Inc.

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