CALGARY — It seems like a no-brainer to use clean-burning hydrogen to offset the environmental negatives of natural gas for warming homes, but pilot projects to do just that starting next year illustrate nothing is simple about this trendy new energy source.

As companies consider ways to commercialize hydrogen as a cleaner alternative fuel and projects advance in Fort Saskatchewan, Alta., and Markham, Ont., most observers concede it will take time and government support to overcome its cost competitiveness issues and lack of infrastructure.

“All hydrogen is not created equal,” says Tahra Jutt, director of the clean economy program for B.C. with environmental think tank The Pembina Institute and co-author of a hydrogen primer published in July.

“If you blend the lowest carbon hydrogen, you’re going to get a much better outcome in terms of climate benefit.”

Hydrogen has many advantages as an energy source. When it burns it leaves only water behind — no carbon dioxide or other greenhouse gases. It can be used for high-energy-intensity applications such as trucking, shipping and steelmaking. It can be compressed for energy storage and transportation. It’s non-toxic and dissipates quickly when released.

But there are disadvantages, too. Its low ignition temperature and nearly invisible flame when burning pose potential safety issues. Concentrated hydrogen can damage metal, requiring enhanced protection for pipelines. 

The act of creating hydrogen requires energy, whether to tear apart water molecules with the electrolysis method or breaking down natural gas molecules through thermal processes which themselves create greenhouse gases.

“The economics in our view for blue and green (hydrogen) are challenged right now but support will increase, costs are bound to come down, so (it’s) another good opportunity for us to capitalize on our infrastructure,” said Al Monaco, CEO of pipeline company Enbridge Inc., on a recent conference call, echoing the cautious stance taken by many industry leaders.

Almost all of the hydrogen created in Canada today is considered “grey,” created by burning fossil fuel and then used in industrial processes such as refining petroleum or producing fertilizer. Pembina estimates it costs between 91 cents and $1.42 per kilogram to make.