Suncor Energy and Atco working together on potential hydrogen project

Suncor Energy and Atco Ltd. are working together on a potential hydrogen project near Fort Saskatchewan, Alta., that would help reduce the province's carbon dioxide emissions.

The companies say the project would produce more than 300,000 tonnes per year of hydrogen.

Suncor would build and operate the hydrogen production and carbon dioxide sequestration facilities and Atco would construct and operate associated pipeline and hydrogen storage facilities.

They expected 85% of the gas would be used to supply existing energy demand including in refining processes and cogeneration of steam and electricity at the Suncor Edmonton Refinery, reducing refinery emissions.

In addition, the gas could be used in the Alberta natural gas distribution system, also reducing emissions.

They say the facility would be located at Atco's Heartland Energy Centre near Fort Saskatchewan and could be operational as early as 2028. A sanctioning decision is expected in 2024.