Linde plans to build new $2 billion blue hydrogen facility in Canada

Global chemicals company Linde will invest $2 billion in a new "blue" hydrogen facility in Alberta, Canada, as the country emerges as a potential production and export hub for the lower-carbon molecule.

Linde will build, own and operate the facility, which will produce gas-fed hydrogen in combination with carbon capture and sequestration. Linde also signed a long-term agreement to supply clean hydrogen to Dow's Fort Saskatchewan "Path2Zero" Project, the company said in an Aug. 27 statement.

Linde's new facility will capture over two million metric tons of carbon each year, the company said, adding that the facility is expected to be completed by 2028 and will be the largest clean hydrogen production facility in Canada.

"In the first phase, Linde will supply the clean hydrogen, nitrogen and other services to support Dow's world-first net-zero emissions integrated ethylene cracker and derivatives site," the statement said. "Linde's new facility will also supply clean hydrogen to existing and new industrial customers seeking to decarbonize their operations."

Platts, part of S&P Global Commodity Insights, assessed the latest cost valuation for hydrogen in Alberta via steam methane reformation without CCS and including CAPEX at C$0.87/kg ($0.65/kg) on Aug. 27. This cost valuation ends at the gate and does not include transportation of the hydrogen fuel.

Canada has been catering to both "green" and "blue" hydrogen projects, targeting Northwest Europe and East Asia for export. The country recently invested C$300 million in an upcoming hydrogen trade corridor with Germany.

However, according to the market, a major challenge lies in the domestic rail transportation of long-haul ammonia trains. The industry, along with provincial governments in Alberta and British Columbia, is actively working to tackle this issue.

A recent market value for hydrogen in the light-duty vehicle sector in British Columbia was reported at C$14.70/kg ($10.93/kg) for HTEC refueling stations, according to a source.

A developer in West Coast Canada provided an indicative offer to Platts for renewable-derived hydrogen fuel below C$9.50/kg ($8/kg) at the gate, or closer to C$12/kg ($9/kg) delivered, starting in 2026-27, factoring in Canada's Investment Tax Credits. Additionally, a recent indicative bid from the heavy-duty mobility sector in the region was reported at C$6-$7/kg ($4.50-$5/kg), with providers in the region eyeing neighboring markets, such as California, with greater appetite.