ATCO and Kansai pursue development of clean fuels supply chain between Canada and Japan

Canadian engineering, logistics, and energy company ATCO, through its investment in Canadian Utilities Limited, is collaborating with Japanese company Kansai Electric Power to develop an integrated clean fuels supply chain between Canada and Japan.

The two companies have completed a pre-feasibility study to produce clean hydrogen and its derivatives in Canada, spanning the entire value chain, with the end product arriving in Japan.

Feasibility evaluation of the entire value chain is ongoing, and ATCO said that representatives from Kansai visited Canada in early March of this year to investigate the production site area as well as the proposed locations for rail loading and port infrastructure, and now, the project team will jointly accelerate toward completion of the feasibility work.

In regard to the project, ATCO said that clean hydrogen would be produced via auto thermal reforming with carbon capture and sequestration in Alberta’s industrial heartland to develop low-carbon-intensity hydrogen or derivatives that would be transported to Canada’s West Coast before being shipped overseas to Japan.

ATCO pointed out that both companies are eager to continue their collaboration on the project, which represents an important contribution to the decarbonisation ambitions of Canada and Japan while deepening the important, long-standing relationship between the two countries.

James Powell, Vice President, Energy Infrastructure, Clean Fuels, ATCO, said: “ATCO recognises there is a significant opportunity for Canada to become a supplier of clean fuels in addition to our nation’s existing energy exports. Together with Kansai, we are eager to complete feasibility work and build consensus for this new decarbonisation opportunity.”

Satoshi Fukushima, Head of Project Development Group, International Business Division, Kansai, commented: “Our recent visit to the project sites inspired us with great confidence in future collaborations on clean fuels between Canada and Japan. Through this project, we hope to be part of a new chapter in ATCO’s over 75-year history.”

To remind, Japan identified clean hydrogen as a key pillar of its ambition to achieve carbon neutrality by 2050, and to ensure an efficient supply of clean fuel, its Strategic Energy Plan contemplates the import of cost-effective products from overseas. In recent months, it formed several partnerships to boost decarbonisation.

On the other side, the government of Canada’s Hydrogen Strategy for Canada identified an opportunity for Canada to become a supplier of clean hydrogen and its derivatives as new, carbon-free, energy export commodities in addition to existing energy exports. Its companies formed several alliances in regard to clean hydrogen.