John Chen

University of Calgary

Using blue hydrogen to decarbonize heavy oil and bitumen operations in Alberta, Canada

To decarbonize Alberta’s heavy oil and bitumen operations, we have proposed replacing natural gas as fuel by blue hydrogen, which can be produced by steam methane reforming (SMR) with carbon capture and storage (CCS). Our novel research has shown that using hydrogen as fuel in 162 heavy oil and bitumen projects in Alberta resulted in savings of 1.5 Tcf/yr of natural gas between 2021 and 2050. This amount of natural gas can produce 15.2 Mtpa of blue hydrogen by SMR, of which only 12.6 Mtpa is needed in Alberta's heavy oil and bitumen operations, resulting in 76% reduction in CO2 emissions. Furthermore, a CCS capacity of 105 Mtpa CO2 can be handled by the existing CO2 pipelines in Central Alberta. Using blue hydrogen as fuel in the heavy oil and bitumen operations is profitable when Canada’s carbon tax exceeds USD $68/t in 2025.