Atura Power, a subsidiary of government-owned Ontario Power Generation (OPG), is nearing FID on its Niagara Hydrogen Centre, which on completion will be Ontario’s first green hydrogen production facility. The developer last year selected US-based Cummins to design and manufacture the project’s 20MW proton-exchange-membrane (PEM) electrolyser system.

To learn more about Atura, including its expanding remit from OPG, the timeline for first production from the Niagara project and which markets it is targeting, Hydrogen Economist interviewed company CEO Shelley Babin.

OPG established Atura to operate and manage its portfolio of natural gas assets in October 2019, but Atura has since branched into clean hydrogen. Is your company to develop, manage and operate all OPG’s clean hydrogen assets as well? If yes, why?

2024 – First production from Niagara Hydrogen Centre

Babin: Atura will build, own and operate the clean hydrogen projects, and we are also working on developing, owning and operating battery energy storage projects. Atura is a proven reliable and efficient operations company, and we are growing into an excellent project development and execution company. Atura’s size, structure and flexibility allows for streamlined project development, improved efficiency and enhanced competitiveness.

In April, Atura announced it had selected the Niagara region over several others in Ontario for its first large-scale hydrogen production plant. What were the key factors for choosing Niagara over the other regions?

Babin: Atura’s Niagara Hydrogen Centre project is strategically located to leverage access to owned lands and existing electricity infrastructure. Importantly, the hydrogen production facility will be adjacent to, and powered directly from, OPG’s Sir Adam Beck 2 hydroelectric generation station. This project leverages Ontario’s largest run-of-the-river hydroelectric generating station to produce Ontario’s first green hydrogen.

What were the reasons for choosing Cummins and its PEM electrolyser system for your Niagara Hydrogen Centre over systems produced by its competitors?

Babin: We found a great partner with Cummins. The technology selection was based on several factors, including scalability, technology maturity and support for this specific project. Further, Atura focuses on working with Ontario and Canadian partners when possible. So, while the technology was the basis of the decision, we are glad this key piece of equipment will be manufactured nearby in Mississauga, Ontario. [Cummins acquired Mississauga-based Hydrogenics, a manufacturer of PEM electrolysers and fuel cells, in September 2019.]

When do you expect to achieve FID and first production from your Niagara hydrogen project?

Babin: FID is expected in early 2023 and production in mid-to-late 2024.

What final impediments must Atura overcome to achieve FID?

Babin: We have overcome many of the challenges in getting clean hydrogen production projects from the feasibility and Feed stages to [FID], including early-stage procurement of critical-path equipment and detailed engineering design. Remaining is confirmation on estimated costs, but we anticipate satisfying those shortly.

What other locations in Ontario do you see as best suited for clean hydrogen production by your company and why?

Babin: Atura is developing several other projects and hydrogen hub locations in collaboration with regions and municipalities across the province. We are advancing projects in various stages in Windsor, Sarnia/Lambton, Nanticoke and the Halton Hills region. Each location is unique and targets decarbonisation of industrial processes such as steel manufacturing, refining and petrochemicals in addition to the aviation, maritime and ground transportation and mobility sectors.

The locations of our projects are very well suited to hub development, where low-carbon hydrogen production is matched with low-carbon hydrogen demand and consumption. Further, we seek to leverage existing owned real estate and electricity infrastructure where possible for project efficiencies.

Atura is to be both a producer and consumer of clean hydrogen. How and why do you plan to consume some of your production?

Babin: Atura will be an initial consumer of the some of the green hydrogen produced at the Niagara Hydrogen Centre by transporting and blending it at a ratio of approximately 15pc into the natural gas supply of our combined-cycle turbine generators at our Halton Hills generating station. We see this as an opportunity to be a catalyst for the Ontario hydrogen industry.

What do you see as the major outside markets for your clean hydrogen production in the future and why?

Babin: We see industry and transportation as our major markets. Industrial applications include displacing grey hydrogen with cleaner hydrogen, displacing or blending with natural gas in heating applications and in specific hard-to-abate industrial processes such as steel manufacturing, ammonia production, refining and other petrochemical processes. Additionally, Atura is very well suited to produce hydrogen along Highway 401, North America’s busiest highway, and support the decarbonisation of heavy- and medium-duty transportation.

Although we are focused on supporting decarbonisation efforts in Ontario, and more broadly Canada, the export market is something we may look to support in the future.

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Author: Vincent Lauerman