- Canadian energy leader Enbridge is partaking in two studies that could have long-term benefits to British Columbia’s environmental sustainability and help the company achieve its goal of net-zero emissions by 2050
- The studies pertain to hydrogen transportation and carbon capture initiatives to build out B.C.’s emerging low-carbon economy
- Enbridge is a multinational pipeline and energy company with headquarters in Calgary
- Enbridge stock has given back almost 13 per cent year-over-year, and has gained only 1.3 per cent since 2019
Canadian energy leader Enbridge (TSX:ENB) is partaking in two studies that could have long-term benefits to British Columbia’s environmental sustainability and help the company achieve its goal of net-zero emissions by 2050.
Hydrogen
On Wednesday, Enbridge announced funding for a hydrogen blending study to examine how the low-carbon energy source could be transported across the province’s existing gas pipeline infrastructure. The study will experiment with a natural gas and hydrogen mixture, and will make use of Enbridge’s West Coast natural gas pipeline system, the main transmission system in B.C. since 1957.
The study, which includes contributions from The British Columbia Ministry of Energy, Mine and Low-Carbon Innovation, may set a path towards a commercial hydrogen market in the province.
Hydrogen is a key component to reaching net-zero emissions, as it can be produced with low or no emissions, depending on the use-case, and it generates only water vapor and air when used to produce heat or electrical power.
“We are working hard to reduce our greenhouse gas emissions and the carbon intensity of the energy we transport,” Cynthia Hansen, Enbridge’s executive vice president and president of gas transmission and midstream, said in a statement. “One way we’re doing this is by using our existing energy infrastructure to transport low-carbon forms of energy such as hydrogen. This important study will play a critical role in determining how existing energy infrastructure can be used to transport hydrogen and how we can continue to work to advance the energy transition.”
Carbon capture
Earlier this week, Geoscience B.C. formed a consortium of government, industry (including Enbridge) and other partners for phase one of the Central Interior Geological CCS Assessment program.
The project will compile geoscience data on the prospective Nechako Basin to determine carbon storage options and help to scale up B.C.’s low-carbon economy.
Carbon capture has been shown to retain more than 90 per cent of carbon dioxide emitted from power plants and industrial facilities, while enabling its commercial use in the manufacturing of fuels, building materials and oil recovery technology.
Enbridge is a multinational pipeline and energy company with headquarters in Calgary and active businesses in crude oil, natural gas, natural gas liquids and renewable energy. The company has produced billions in net income each year over the past five years, with 2024 expected to yield EBITDA between C$16.6 billion and C$17.2 billion, reflecting more than 4 per cent growth relative to the midpoint of 2023 guidance.
Enbridge stock (TSX:ENB) is down by 0.46 per cent, trading at C$48.55 per share as of 10:34 am ET. The stock has given back almost 13 per cent year-over-year, and has gained only 1.3 per cent since 2019.
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