Methodology
The following
tasks were completed as part of the baseline assessment of hydrogen
development in Canada.
Establish
a Baseline for Hydrogen Development
The first step
in this analysis was to establish a baseline for hydrogen development
in Canada. This includes a discussion of key sectoral characteristics
and a description of the current level of technological development
for all major applications (portable, stationary and mobile)
and stages including hydrogen production, storage, transportation
and use. This was accomplished using a combination of a literature
review, contact with industry experts and work previously completed
by the Pembina Institute in this field.
Identify Alternative Hydrogen Pathways
The second step in this analysis was to identify
and assess a comprehensive set of hydrogen pathways that can
be realized over approximately the next 30 years (up to 2030).
A hydrogen pathway comprises different combinations of energy
sources, conversion technologies, transportation and storage
devices and end-use products. We began by identifying an extensive
set of pathways through which hydrogen could be developed in
Canada. We then assessed these pathways according to the likelihood
of the pathway being realized, data availability and the impact
the particular pathway could have on national carbon emissions.
The end result was a manageable list of pathways for further
consideration and modelling.
Obtain Technology Parameters and
Modify Model
For each of the pathways, we then collected detailed
technology parameters for input into the Energy 2020 model (the
model that will be employed to evaluate fiscal policy scenarios
in the next stage of this research). Model parameters included
capital costs, operating and maintenance costs, fuel costs,
energy use efficiencies, the portion of the market with access
to hydrogen technologies and energy use in the production of
hydrogen. This information was collected through a combination
of literature review and consultation with experts.
Technology parameters for each of the pathways
were then incorporated into the Energy 2020 model. Based on
these parameters and the model’s representation of how
consumers behave, the model will determine the market share
of the hydrogen technologies in various uses (stationary and
mobile) given fiscal policy stimulus.
Describe the Current Policy Framework
The federal government in Canada has already implemented
a number of policies related to hydrogen technologies. Thus,
before investigating the role of additional policies, it was
necessary to first understand the key policies currently in
place. To that end, the third step in this analysis was to identify
and describe the key fiscal policies currently governing hydrogen
developments in Canada.
Identify the Barriers to Hydrogen
Developments
The fourth step in this analysis was to identify
the barriers, both technological and economic, that currently
limit hydrogen technology market penetration in Canada. This
was accomplished through a combination of literature review
and expert consultation.
Evaluate Fiscal Policies for Hydrogen
Development
Once the barriers were identified, it was then
necessary to develop an extensive list of fiscal policies that
can be employed to overcome these barriers. Thus, the next step
in the analysis was to develop a list of fiscal policies and
evaluate these policies according to a set of criteria, which
included the ability to address a barrier identified in the
previous step. The evaluation was used to narrow the list of
potential fiscal policy options to only those that offer the
greatest potential to increase market penetration of hydrogen
technologies in Canada. These policies were further evaluated
in the Economic Analysis segment of this research.
