FORTISBC
VulcanX and FortisBC sign deal to support new hydrogen technology
Hydrogen can help meet the energy needs of British Columbians according to the provincial government

FortisBC Energy Inc. (FortisBC) and VulcanX Energy Corp. (VulcanX) have signed a funding agreement to support the development of hydrogen pyrolysis technology that would see zero-emission hydrogen and solid carbon being produced from natural gas at a low cost. FortisBC, through its Clean Growth Innovation Fund, is providing funding to VulcanX for the development of its proprietary technology.

"We are pleased to work with companies such as VulcanX through the Clean Growth Innovation Fund to advance the development of new technologies that can be used for the production of hydrogen," said Joe Mazza, vice president of energy supply and resource development at FortisBC. "We believe that 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."

FortisBC's gas system is playing a role in reducing greenhouse gas emissions by transitioning away from delivering conventional natural gas to delivering renewable and low-carbon gases,¹ like Renewable Natural Gas² (RNG) and in the future, hydrogen.

Amendments to the Greenhouse Gas Reduction (Clean Energy) Regulation (GGRR) authorized under the Clean Energy Act enable utilities, like FortisBC, to play a role in establishing and growing the hydrogen sector in B.C. Through the GGRR, FortisBC can directly invest in hydrogen production as well as distributing it as an energy source.

"Collaborative relationships between innovative companies like VulcanX and FortisBC are helping to drive B.C.'s growing clean energy sector," said Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation. "It's exciting to see collaborations underway within the sector that are reducing emissions and creating a healthier, more sustainable environment for British Columbians."

VulcanX is a company that was spun out from MéridaLabs at the University of British Columbia. VulcanX developed the technology to separate natural gas into its components of hydrogen and solid carbon. Funds from FortisBC will be used to support the front-end engineering and the 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.

"Technology innovation can empower B.C., Canada and the world to achieve our emission reduction targets and do so economically," said Dr. Omar E. Herrera, CEO of VulcanX. "FortisBC is putting words into action by supporting us via the Clean Growth Innovation Fund. We at VulcanX cannot wait to get this project started."

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

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

¹FortisBC uses the term renewable and low-carbon gas to refer collectively to the low-carbon gases or fuels that the utility can acquire under the Greenhouse Gas Reduction (Clean Energy) Regulation, which are: Renewable Natural Gas (also called RNG or biomethane), hydrogen, synthesis gas (from wood waste) and lignin. FortisBC's renewable and low-carbon gas portfolio currently includes only Renewable Natural Gas. Other gases and fuels may be added to the program over time. Depending on their source, all of these gases have differing levels of lifecycle carbon intensity. However, all of these gases are low carbon when compared to the lifecycle carbon intensity of conventional natural gas. The current burner tip emission factor of RNG is 0.27 grams of carbon dioxide equivalent per megajoule of energy (gCO2e/MJ) and the current renewable and low-carbon gas portfolio lifecycle emissions for stationary combustion are -22 gCO2e/MJ. This is below B.C.'s low carbon threshold for lifecycle carbon intensity of 30.8 gCO2e/MJ as set out in the 2024 Greenhouse Gas Reduction Regulation amendments.

²Renewable Natural Gas (also called RNG or biomethane) is produced in a different manner than conventional natural gas. It is derived from biogas, which is produced from decomposing organic waste from landfills, agricultural waste and wastewater from treatment facilities. The biogas is captured and cleaned to create RNG. When RNG is added to North America's natural gas system, it mixes with conventional natural gas. This means we're unable to direct RNG to a specific customer. But the more RNG is added to the gas system, the less conventional natural gas is needed, thereby reducing the use of fossil fuels and overall greenhouse gas emissions.

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