Canada’s green energy superpower: renewable hydrogen

According to the Canadian Urban Transit Research and Innovation Consortium (CUTRIC), a current total of 2,350 zero-emission buses (ZEBs) have been promised, procured, or deployed in Canada as part of the federal government’s commitment to roll out 5,000 ZEBs over five years. Not all will result in actual bus purchases, but many will. Problematically, there are zero hydrogen fuel cell electric buses on Canadian roads to date. This is despite the fact—dictated by the laws of physics—that many mid-and large-sized agencies will not be able to fully electrify their fleets without the long ranges and short fueling times associated with hydrogen fuel cell bus technologies. The issue is simply one of cost. Physics shows fuel cell buses are an excellent solution for challenging terrains like the Rocky Mountains, long distances and severe weather conditions. But—today—renewable (green) hydrogen produced from green electricity supplies is in low volume across Canada. The renewable hydrogen industry has not grown because of low demand. A kilogram of hydrogen is up to four times the price of dirty diesel. To boost the market and the demand, the government must leverage its massive fleets—transit fits the bill. The increase in production volume will reduce the price of green hydrogen. The transportation sector accounts for 25 per cent of Canada’s greenhouse gas (GHG) emissions. A smart way to reduce transportation emissions is to electrify the system with battery and hydrogen electric vehicles simultaneously. Public transit buses constitute bulk market drivers. For example, the Toronto Transit Commission (TTC) has more than 2,000 buses on Toronto roads; most of these are purchased in bulk (20 to 200 at a time). Many other agencies also make mass purchases and can transform the market demand quickly. The problem? Today, the delivered cost of renewable hydrogen from a small-scale plant (1,000 kg per day) in Ontario is 2.5 to three times the price of delivered non-renewable diesel. This amount of hydrogen fuels 30 buses. Diesel, meanwhile, fuels hundreds of thousands of trucks and buses daily—green hydrogen can’t compete with that market demand and volume on its own in the short term. Diesel will get more expensive—carbon pricing ensures that. But public transit must make the switch to renewable sources of energy like green hydrogen today to reduce greenhouse gas emissions and serve challenging terrains. The federal government should invest—temporarily—in technology innovation to spur job growth in a new green economy for this century—just as it did in the last century for the automotive, rail, aerospace and oil sands industries. The price differential in green hydrogen over diesel today makes it difficult for transit agencies and their city or regional councillor bosses to invest in zero-emission technology despite wanting to do so and despite redirecting existing operation funds that way. Today, Canadians benefit from a unique national consensus—all major federal parties agree that more must be done to combat climate change. It won’t come cheaply. But the heavy-duty, high-volume public transit sector can play an immediate transformational role in Canada’s zero-emission industry as a major market mover. Infrastructure Canada has stepped up by creating a new $2.75-billion Zero Emission Transit Fund, which will offset the price tag associated with fuel cell buses (still about three times the price of a diesel bus due to low volumes). But it needs to come forward with provincial partners to temporarily offset the green hydrogen price tag for city and public (taxpayer-backed) fleets. The private sector of freight trucks will follow suit on their own once the price starts dipping. Eliminating the price differential will require the Government of Canada to play an active investor role in kickstarting market forces and bringing down the cost of green hydrogen. Significant market-altering “shovel-ready” hydrogen fuel cell bus projects—like Mississauga’s nationally leading fuel cell bus project in Ontario—are held up due to this price gap right now. Billions of dollars are flowing for pandemic recovery. A few million needs to come this way for an industry that will fuel Canadians, employ Canadians and save the health of Canadians in the long term. Dr. Josipa Petrunić is the president and CEO of the Canadian Urban Transit Research and Innovation Consortium (CUTRIC). As one of Canada’s leading experts in Zero-Emissions Bus (ZEB) innovation deployment projects, Petrunić has designed, developed and launched the Pan-Canadian Electric Bus Demonstration & Integration Trial, the Pan-Canadian Hydrogen Fuel Cell Demonstration & Integration Trial and the Canadian National Smart Vehicle Demonstration & Integration Trial. The Hill Times