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Edmonton Global recently commissioned Deloitte to complete an assessment on the state of hydrogen adoption in the commercial transportation sector in Western Canada. The purpose of the assessment was to understand the current state and provide some actionable opportunities to scale the adoption of hydrogen in this sector. The results have been published in a report entitled, “Zero Emission Vehicle Awareness Initiative - Current State Assessment.”
This article will provide a summary of the report which was completed with funding from Natural Resources Canada as part of its Zero Emissions Vehicle Awareness Initiative. This initiative aims to increase awareness of the hydrogen opportunity for Western Canada’s commercial transportation sector.
Key findings
Overall, the report highlights three key findings:
- Hydrogen vehicles are better suited for long-haul heavy-duty trucking than Battery Electric.
- Fleet operators prioritize the total cost of ownership when making vehicle purchasing decisions.
- The Edmonton Region is Alberta’s most strategic location for hydrogen vehicle adoption.
Hydrogen vehicles are better suited for long-haul heavy-duty trucking than Battery Electric
The report acknowledges that many pathways are needed to decarbonize commercial transportation. However, while battery electric vehicles may make sense for some applications, like light-duty short-haul trucking, hydrogen-powered vehicles must be at the heart of decarbonizing the commercial transport sector. This is largely due to the extended range and performance over long distances, while carrying heavy loads, and in extreme weather conditions.
Fuel cell electric vehicles (FCEV)
The report goes on to say that Fuel Cell Electric Vehicles offer significant potential for long-haul trucking because they have similar fueling times, range, and performance as traditional internal combustion engine vehicles.
Dual-fuel technology
The report further identifies dual-fuel technology as serving an important bridge technology that will allow fleets to more nimbly and affordably decarbonize their existing fleets by retrofitting them with this technology.
How truck purchasing decisions are made
According to the report, fleet operators consider the total cost of ownership (TCO), which includes energy costs, subsidies, and maintenance. Fuel prices, how long a vehicle is owned, and how far it’s driven influence total cost of ownership the most. This reinforces the need to consider strategies that will support lowering hydrogen fuel costs. Notably, fuel costs are projected to reach competitive levels as the infrastructure and supply chain develop. The report also notes that federal and provincial grants and incentives that address the TCO of hydrogen vehicles can play a significant role in reducing costs, making hydrogen technology a more affordable and attractive choice.
While TCO is the leading factor, it is one of many criteria. Reliability and performance, brand reputation, weight regulations, and customer support are also key drivers influencing fleet owners’ purchasing decisions. Together, these factors shape purchasing decisions for fleet operators.
The Edmonton Region is the most strategic location for hydrogen vehicle adoption
The report identified strategic trucking corridors that should be prioritized for fuel station development. The recommendations were based on location, access to fuel, and potential for hydrogen vehicle pilots. Developing these stations will be critical in ensuring reliable hydrogen supply for long-haul trucks.
Edmonton to Calgary
Edmonton to Calgary was identified as the highest impact strategic route with Highway 2 having some of the highest truck traffic in the province. Spanning 300 km, this route presents opportunities for investments in fueling stations within and between both regions.
There is one permanent commercial hydrogen fueling station already in place in the Edmonton Region, along with several temporary stations. In April 2024, Air Products announced its plans to open a multi-modal hydrogen fueling station at its Edmonton facility and create a “hydrogen highway” of refueling stations between the Edmonton Region and Calgary by 2025.
Edmonton to Prince George
Edmonton to Prince George via Highway 16 is another key route with potential opportunity. The report suggests building a fueling station in Hinton, Alberta to connect the two hydrogen hubs.
Edmonton to Fort McMurray
High trucking volumes along the Edmonton to Fort McMurray corridor, covering 450 km one-way, is a strong indicator of the need for hydrogen refueling stations.
British Columbia
In British Columbia, the Lower Mainland and Prince George were identified as the most strategic regions for fueling station development. Currently, Vancouver and Prince George have collectively announced their ambitions to produce approximately 400 tonnes of hydrogen per day, which will undoubtedly spur investment into hydrogen fueling infrastructure.
HTEC plans to open a heavy-duty, higher capacity, fueling station located on Tsawwassen First Nation land near Vancouver. HTEC also has a proposed clean hydrogen facility which is expected to support the deployment of up to 30,000 fuel cell vehicles.
Hydra Energy plans to open the first commercial fueling station in Prince George with on-site hydrogen production. The company also has plans to open a low-carbon hydrogen production facility and commercial fueling station in 2024, on the same site.
Conclusion
Canada’s entire hydrogen value chain, including fleet operators, service and technology providers, manufacturers, refueling station operators, and hydrogen producers all have a role to play in decarbonizing our future.
The Edmonton Region’s hydrogen ecosystem holds strategic importance in decarbonizing the commercial transportation sector — particularly for Class 8 trucks and buses for long-haul and heavy-haul transportation. With hydrogen-powered vehicles becoming more commercially available for wide-scale deployment, the Calgary to Edmonton corridor, Alberta’s busiest highway, stands as a key starting point to develop a scalable hydrogen refueling network across Western Canada.
Interested in learning more? Download the official report here.
