Decarbonizing Grey Hydrogen: Assessing CCS Integration in Quebec’s Industrial Sector

25-08-12

Reading time - Temps de lecture: 3 minutes

Hydrogen is increasingly recognized as a key player in the global transition to net-zero emissions. While it can be produced from a variety of sources, the vast majority of hydrogen currently used in industry is made from fossil fuels, earning it the label “grey hydrogen.” The problem? These methods release large quantities of CO₂ into the atmosphere. In Quebec, industries like steelmaking and oil refining heavily rely on grey hydrogen, with minimal mitigation of the resulting emissions. As governments and companies aim for ambitious climate goals, there’s a growing need to clean up hydrogen production-and fast.

My internship was part of a larger project aimed at evaluating decarbonization strategies for industrial hydrogen production in Quebec. This included assessing the potential for Carbon Capture and Storage (CCS) technologies to be retrofitted onto existing grey hydrogen facilities. The project focused on three main hydrogen production routes: Steam Methane Reforming (SMR), the MIDREX ironmaking process, and Catalytic Naphtha Reforming (CNR). Each of these plays a significant role in Quebec’s industrial emissions profile, making them prime candidates for decarbonization.

My internship centered around conducting a detailed techno-economic analysis of integrating CCS into these three hydrogen production routes. I evaluated different CO₂ capture configurations for each process, comparing their technical performance and costs. For SMR, which accounts for a large share of Quebec’s hydrogen production, I analyzed multiple capture points: the shifted syngas, the PSA tail gas, and the flue gas. The results showed that capturing CO₂ from flue gas using a chemical solvent (MEA) yielded the highest capture rate – up to 90% – but also came with the greatest energy and capital costs. Despite the trade-offs, this scenario emerged as the most effective for deep decarbonization.

In the MIDREX process, which is used in steelmaking, I studied several configurations including post-combustion and fuel-gas capture. Again, the highest CO₂ capture rates were achieved with MEA-based systems and advanced technologies like SEWGS (Sorption-Enhanced Water Gas Shift). While more complex, these systems significantly reduced emissions, with up to 74% CO₂ reductions in some scenarios.

CNR presented more of a challenge. Due to its complex integration into refinery operations, a full assessment wasn’t feasible. However, initial investigations suggest that capturing CO₂ from heater combustion could offer meaningful emissions cuts.

To evaluate economic feasibility, I calculated the Levelized Cost of Hydrogen (LCOH) and Cost of CO₂ Avoidance (CCA) for each capture configuration. Unsurprisingly, the more effective the system at capturing CO₂, the higher the cost. For instance, the most robust SMR capture scenario increased LCOH by nearly 50%. Still, the environmental payoff – especially when compared with the cost of carbon emissions – can make these investments worthwhile under the right policy conditions.

The key takeaway from my internship is that decarbonizing grey hydrogen is not just technically possible – it’s already economically viable in some cases. Technologies like flue gas capture in SMR and post-combustion capture in MIDREX are commercially mature and offer immediate pathways to reduce industrial emissions. However, achieving cost-effective decarbonization requires balancing technical performance with local economic realities and energy infrastructure.

More broadly, this work reinforced for me how complex and interdisciplinary the energy transition really is. It’s not just about chemistry or engineering; it’s about economics, policy, and local context. Going forward, I hope to continue working on strategies that combine these dimensions to accelerate climate action in hard-to-abate sectors like industry.

Summary: This internship explored the integration of Carbon Capture and Storage (CCS) technologies into Quebec’s major grey hydrogen production facilities. The project assessed the technical and economic viability of CCS across multiple industrial processes, offering pathways toward a cleaner, blue hydrogen future.

Keywords: Blue Hydrogen, Carbon Capture and Storage, Quebec Industry