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    Blue methanol/hydrogen project advanced for Alberta


Plant would produce 200mn mt/yr of hydrogen and methanol for export as ammonia to Pacific Rim markets

by: Dale Lunan

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Blue methanol/hydrogen project advanced for Alberta

Northern Petrochemical said November 10 it was pursuing the development of a C$2.5bn (US$2.02bn) facility in northwest Alberta that would produce 200mn mt/yr of blue methanol and blue hydrogen that would be converted to ammonia for export to Pacific Rim markets.

The project will qualify for funding under the Alberta Petrochemical Incentive Program (APIP), which provides grants equal to about 12% of eligible capital costs once a facility is operational. Pending a final investment decision, construction could start in 2023 with completion in 2026, generating 4,000 construction jobs, 400 permanent operating jobs and C$3bn in municipal and provincial tax revenue over its operating life.

The project would be developed on about 200 acres of industrial land in the new Greenview Industrial Gateway, near Grande Prairie and in the heart of the Alberta Montney shale gas fairway. The plant would use 200mn ft3/day of natural gas as feedstock, and would incorporate carbon capture and storage (CCS) technology in the production of methanol and hydrogen.

“After looking at possible locations nationally and globally, we decided that Alberta would be the best home for this project,” Northern Petrochemical CEO Geoff Bury said. “The Greenview Industrial Gateway and the Alberta Petrochemicals Incentive Program are both examples of the right infrastructure and supports in Alberta to create jobs and grow a cleaner energy future.”