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The proposed hydrogen subdistrict by ATCO in Edmonton will pay 4 to 10 times more than the current price for heat.

The proposed hydrogen subdistrict by ATCO in Edmonton will pay 4 to 10 times more than the current price for heat.

The proposed hydrogen subdistrict by ATCO in Edmonton will pay 4 to 10 times more than the current price for heat.

News from CleanTechnica is available via email, so don't forget to subscribe to our daily updates or follow us on Google News! In each of my publications addressing the economic impracticality of using hydrogen in energy, I encounter numerous comments. People share their examples of failed hydrogen schemes that they believe either support my position or, conversely, refute my arguments. Recently, after an article about Canada's $25 billion hydrogen strategy, which is based on low progress and insufficient reality, I was informed that a new neighborhood is planned in Edmonton that will be completely heated with hydrogen. But where did this idea come from? Primarily, its source is ATCO—a family-owned company from Alberta, known for its green and white modular offices, as well as its natural gas supply services. ATCO is deeply connected to Alberta's fossil fuel ecosystem and, like most gas companies around the world, is trying to present hydrogen as a saving solution for its industry.

Currently, ATCO, together with the development company Qualico, is building a hydrogen house in Sherwood Park, a suburb of Edmonton. This idea of creating a new residential area covering about 2,000 hectares in Strathcona County, which can accommodate 85,000 residents, involves heating and using gas stoves powered by hydrogen. They claim that there are many homes and apartment buildings in Europe with certified hydrogen appliances, but this is absolutely not true. Similar to ATCO, various gas companies in Europe have tried to implement hydrogen in residential and commercial buildings, but progress in this area has been extremely limited. I don't know of any houses, apart from demonstration models like the one being built by ATCO in Europe, that are ready for hydrogen use.

Experts claim that "hydrogen readiness" is equivalent to saying that your garage is ready for a Lamborghini. The mere presence of parking space does not mean that you have the means to buy such a car. ATCO and Qualico are counting on government financial support. Just for exploring this idea, they received a grant of2 million Canadian dollarsfrom Alberta Innovates. This organization often collaborates with gas companies, sometimes proposing strange ideas, which is often accompanied by a lack of a realistic approach to the issues of transitioning to new energy sources.

ATCO readily states that the use of hydrogen will be safe, as it does not produce carbon monoxide. However, they forget to mention that the main product of their activity—natural gas—is actually a source of carbon monoxide in most households. Furthermore, burning hydrogen will lead to the formation of more nitrogen oxides, which will negatively affect children suffering from asthma, as well as people with respiratory issues. The company has also received900 thousand dollarson the creation of a hydrogen operations center in Fort Saskatchewan, which will be engaged in blending hydrogen with existing natural gas lines. However, due to the characteristics of the steel used, in most North American gas pipelines, it is possible to blend hydrogen with natural gas only up to10%This10%Hydrogen has a density three times lower than that of natural gas, so the same volume of gas will produce less energy. Hydrogen also has a higher leakage rate because its molecules are smaller than those of methane, and the global warming potential of this gas is approximately...12It is higher than that of carbon dioxide. Thus, mixing hydrogen with natural gas does not provide any climate benefits.

Are there any real chances for the construction of this residential community? Most likely, no. The plots of land are for sale and many projects are being proposed.20ATCO and Qualico do not plan to acquire these areas. The realtor with2019The years offer hundreds of acres of land, yet there is no interest from buyers. This is just a well-funded study aimed at buying time.

What will happen if the neighborhood is built after all?

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Let's start with energy prices. ATCO, as a gas company, compares prices with its own rates. The average household in ATCO's northern region, including Edmonton and Strathcona County, consumes about120 gigajoulesper year. At the same time, they pay1.91 dollarsper day for delivery, which amounts to approximately700 dollarsper year. For1 gigajoulethey pay for natural gas2.20 dollarsthat adds about270 dollarsper year, with a total cost of approximately1,000 dollars..

The comparison shows that the average household in Sweden consumes only72 gigajoulesper year, covering all aspects of daily life, including heating, cooking, and electricity. Albertans, in comparison, use on60%More energy is needed just for heating. Although it is impossible to achieve a zero carbon footprint through energy efficiency if fossil fuels are used, the history of low prices for fossil energy sources in this region negatively impacts the insulation of homes.

Based on the conducted research, the cost of producing low-carbon hydrogen is approximately24 dollarsfor gigajoule of blue hydrogen and about47 dollarsfor gigajoule of green hydrogen. Based on minimal production, with the addition of15%on profit, we can arrive at a final price around28 dollarsper gigajoule. It is also important to note that for the new residential area, certain requirements must be met.100%New pipelines for hydrogen, which are more expensive than existing natural gas distribution lines.

Thus, consumers may face an increase in delivery prices up to50%If we assume that the average consumption will remain at the same level120 gigajoulesThe final cost will be3300 dollarson gigajoules plus more1,000 dollars.for delivery, which amounts to4300 dollarsWhy should a resident of Alberta pay four times more for heating and cooking? At the same time, the cost of green hydrogen could reach6500 - 10000 dollarsa year, which is even more burdensome.

There are also many other factors. To ensure the safety of homes with hydrogen appliances based on European and North American standards, ventilation openings with a diameter will be required in each room.10 cmThis will lead to significant heat loss. In fact, it will require additional energy to reach the desired temperature.

Another significant issue is safety. In the USA, every year4000Buildings are subjected to explosions and fires due to the use of natural gas. Studies conducted in the UK and on the continent show that switching to hydrogen for residential and commercial heating increases the risk of fires and explosions.400%that requires the installation of hydrogen detectors costing several hundred dollars per home.

Moreover, the cost of insurance will be proportional to the risks. On average, homeowners in Edmonton paid1500 dollarsfor home insurance in2021In the year. After the introduction of new safety standards, this amount may increase to2000-2500 dollarspossibly even higher.

If there were a plan for a new, well-designed community in2000 hectaresand85000If residents had heating, efficient heat pumps, and high-quality insulation, the situation would be different. If we take the average number of occupants in Canadian families, which is2.51then the total number of apartments would be about34000In modern apartment buildings with excellent insulation, it is necessary to use only40 gigajoulesfor heating, which will reduce energy consumption to10 gigajoulesper year for each household. With the cost of electricity at17 centsFor kWh in Alberta, it will only amount to500 dollarsper year for each residence.

Currently, the carbon intensity of electricity in Alberta has decreased. However, with the improvement of the heating supply system, further reductions in the carbon footprint can be expected. With the transition to more efficient models of "heat pumps" with a coefficient of performance...8One unit of electricity will be enough for the extraction.8 units of heatfrom the building. On2019 year1 of3Residents of Alberta had air conditioners, and new heat pump systems are being used worldwide.

This is exactly why the United Kingdom is abandoning hydrogen heating trials. This is why a recent analysis conducted by Jan Rosenow, director of the Regulatory Assistance Project, indicates that54Independent studies do not support the use of hydrogen for heating. Simple arithmetic, which ATCO undoubtedly knows, only confirms that this is an attempt to buy time rather than a serious project. The investments made...2 million dollars— this is simply a waste of taxpayers' money and additional subsidies for the fossil fuel industry.

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