Hydrogen Canada Corporation (HCC) has closed its C$10 million seed round financing and signed a letter of commitment on an offtake agreement with South Korea-based E1 Corporation (E1), to develop a low-carbon hydrogen/ammonia supply chain from Western Canada to South Korea and other Asian markets.
In that regard, HCC said the company intends to develop a world-scale, low-carbon hydrogen/ammonia production facility in the Alberta Industrial Heartland near Fort Saskatchewan, Alberta, Canada.
Initial feasibility studies with respect to the facility have been completed by HCC and the facility has an anticipated design capacity of approximately one million tons per annum of low-carbon ammonia.
HCC informed the facility is also planning to utilize innovative technology to capture and permanently sequester a significant amount of CO2 emissions, noting that low-carbon ammonia will be transported via rail to Canada’s West Coast and then shipped to South Korea and other Asian markets.
Bryan Moon, Hydrogen Canada’s President, stated: “This project represents an opportunity to use cost-advantaged, low-carbon natural gas in Alberta to support the decarbonization of South Korea and other Asian countries and to provide a level of energy security to those countries as well.”
“Access to cost-effective carbon sequestration also creates a material strategic advantage for this project in Alberta’s Industrial Heartland. Our partner, E1 Corporation, is a major trader of LPG in Asia, including significant volumes of Canadian LPG, and it recognizes the marketability of low-cost, reliable energy products sourced from western Canada.”
E1 Corporation Chairman JY Koo said that E1, drawing from its LPG industry expertise, is positioning itself as a leading supplier of clean ammonia, hydrogen and LPG in South Korea, and the foundation for the endeavour lies in the partnership with HCC.
“As this promising collaboration unfolds, we are optimistic about securing crucial support from the Canadian Government, a pivotal step towards the project’s success. This initiative not only reaffirms Canada’s position as a reliable LPG supplier for E1 Corporation but also assumes a pivotal role in the supply of clean ammonia and hydrogen to us,” Koo noted.
HCC highlighted the South Korean Goverment’s commitment to ‘Net Zero by 2050,’ and noted that South Korea believes that the use of hydrogen and ammonia for power generation and mobility will support that effort.
When it comes to Alberta, HCC emphasized that the area is currently one of the leading ones in Canada for the production of ammonia, adding that its announced project is another opportunity to support the development of a hydrogen and low-carbon economy.
“We know that Alberta has the opportunity and ability to provide energy security around the world. Our abundant natural resources, including hydrogen and ammonia, are enabling us to continue to grow our energy industry and pursue new technologies. Alberta is open for business and we’re pleased to see Hydrogen Canada Corp. partner with South Korea’s E1 Corporation to invest here,” Alberta Premier Danielle Smith said.