The area around Moose Jaw and Regina could be the site of a hydrogen hub.
The Government of Saskatchewan announced on Monday that a foundation study is being done by Transition Accelerator and the Saskatchewan Research Council to look at the viability of commercial-scale “blue” hydrogen opportunities in the province.
The study will focus on “blue” hydrogen because it can be extracted through carbon capture, utilization and storage (CCUS) methods. Saskatchewan currently produces what is known as “grey” hydrogen, which is more carbon intensive.
“The report is going to look clearly at the inputs and the outputs, what the current state of hydrogen production is, how we can make that transition from grey to blue hydrogen and what stages are needed,” said Mike Crabtree, CEO of the Saskatchewan Research Council.
The hub would be an area to store and transport the hydrogen.
Another option for the province is “green” hydrogen, which is produced through wind and solar, but the government says it would be much more costly.
In its liquid form, hydrogen can be used for fuel for heavy trucks, buses and railway locomotives.
“We want to foster investment. We want to promote it. We want to encourage it, but we always want to make sure that when we're looking at something such as hydrogen, which is a new emerging area, that we are sensible as guardians of the public purse about how that will look,” said Minster of Energy and Resources Bronwyn Eyre.
The provincial government will be giving a $100,000 grant for the report, while Whitecap Resources and Federated Co-op will jointly be giving $50,000.
The foundation report is expected to be completed by next year.