FortisBC funds VulcanX tech for hydrogen production via natural gas pyrolysis

FortisBC Energy Inc., a natural gas, renewable natural gas and propane utility based in Surrey, B.C., will fund the development of pyrolysis technology to produce zero-emission hydrogen and solid carbon from natural gas at a low cost. 

FortisBC has signed a funding agreement with Vancouver, B.C.-based technology startup VulcanX Energy Corp. to develop its proprietary technology, which could one day use renewable natural gas to produce hydrogen.

“The process will use methane. It will produce hydrogen from system gas, which may include RNG as we grow our RNG supply into the future,” said spokesperson Diana Sorace in an email.

The startup’s technology, spun out of MéridaLabs at the University of British Columbia in a de-risked demonstration plant, employs a bubbling technique and a state-of-the-art molten metal recirculation system, according to a press statement.

Natural gas is introduced from the bottom, passing it through molten metal to ensure consistent and efficient output. The reaction that occurs in this high-temperature and oxygen-free environment converts the natural gas into its basic constituents: hydrogen and solid carbon. This process is known as pyrolysis.

FortisBC aims to reduce greenhouse gas emissions by transitioning away from delivering conventional natural gas through its gas system to renewable and low-carbon gases, such as renewable natural gas, and in the future, hydrogen.

The utility will fund VulcanX through its Clean Growth Innovation Fund. It declined to say what the funding agreement is worth, but states on its website the fund was expected to direct $4.9 million to energy projects every year between 2020 and 2024, in partnership with government and industry.

“FortisBC… is providing funding for the front-end engineering design, and the detailed engineering design of the 1 tonne of hydrogen per day plant,” said Sorace.

The project is expected to wrap in 2026.

The release said amendments to the Greenhouse Gas Reduction (Clean Energy) Regulation (GGRR) authorized under the Clean Energy Act enable utilities, like FortisBC, to play a role in establishing and growing the hydrogen sector in B.C.

Through the GGRR, FortisBC can directly invest in hydrogen production as well as distributing it as an energy source.

“We believe that hydrogen has the potential to play a significant role in a lower-carbon energy future and can help meet the energy needs of British Columbians while supporting the goals of the province’s CleanBC strategy,” said Joe Mazza, vice president of energy supply and resource development at FortisBC, in the release.

“Collaborative relationships between innovative companies like VulcanX and FortisBC are helping to drive B.C.’s growing clean energy sector,” said Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation, in the release.