Mitsubishi, Shell to produce blue hydrogen in Canada

Japan's Mitsubishi Corporation (MC) and Anglo-Dutch major Shell have signed a memorandum of understanding on blue hydrogen production from natural gas using carbon capture and storage (CCS) near Edmonton, Canada, the Japanese firm said on September 9.

MC aims to build and start up the low-carbon hydrogen facility near the Shell Energy and Chemicals Park Scotford towards the latter half of this decade, and Shell would provide CO₂ storage via the proposed Polaris CCS project. The blue hydrogen would be produced via a natural gas feedstock and exported mainly to the Japanese market to produce clean energy.

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The first phase of the project aims to produce approximately 165,000 metric tons/year of hydrogen and capacity could be expanded during future potential phases, MC said. The hydrogen would be converted to low-carbon ammonia for export to Asia.

The project would be built near the Edmonton region, which this year was announced as Canada's first hydrogen hub. The location was chosen due to the availability of abundant natural gas resources, proven CO₂ storage capacity, and shared infrastructure opportunities.

“By co-locating next to Shell Scotford, both companies will explore potential synergies such as land use and utilities integration. Close communication with stakeholders will be a key principle as the project proceeds in its development,” MC said.