Former Vice President of Investor Relations, Air Products
VP Eric Guter at the Canadian Hydrogen Convention | Air Products
Air Products' VP, Hydrogen for Mobility, Eric Guter, spoke with Chris McLeod, VP of Global Marketing & Communications, Edmonton Global on Air Products' net-zero hydrogen hub in Alberta at the 2022 Canadian Hydrogen Convention.
About Eric Guter
Eric Guter, Vice President of Hydrogen for Mobility at Air Products, spoke at the 2022 Canadian Hydrogen Convention about the company's net-zero hydrogen facility in Alberta. He stated that Air Products has over 250 executed mobility projects in 20 countries and over $16 billion in announced decarbonized hydrogen projects globally. Guter described the Alberta facility as a world-scale hydrogen production plant designed to achieve over 95% carbon capture, processing natural gas and storing carbon underground menus. He said the facility would also produce decarbonized power using hydrogen-powered turbines, with liquefaction to supply liquid hydrogen for mobility customers. Guter noted that Air Products has its own sustainability goal of reducing carbon intensity by one-third by 2030, calling the company's sustainability goals its growth ambitions. He said the Alberta project would employ approximately 2,000 construction workers. Guter attributed the company's investment decision to Canada's "unwavering commitment to climate change objectives," stating that the company is confident Canada will remain committed to net-zero ambitions.
Transcript (38 segments)
C
Chris0:10
If you haven't come down yet, please do. If you happen to be in the region, this is the largest hydrogen show in North America, and as well, we've been told it's the largest conference to happen in Canada since the beginning of the pandemic. So there's a ton on the go here. And the next session, actually, we've had a lot of people that are interested in this. It's a conversation with Eric Guter with Air Products. And Air Products about a year ago announced a massive project here in the Edmonton metropolitan region. They're building the world's largest net zero hydrogen facility right here in our region. It's going to have both gas and liquid hydrogen, and it's just an absolute game changer not just for here but the world over. Eric, thanks so much for joining us.
E
Eric Guter0:52
Thank you very much, Chris. Great to be here. I'm thrilled to be back in Edmonton after a brief three-year hiatus.
C
Chris1:10
Absolutely. You know, we talk a lot about this huge project that Air Products has on the go, what's next, but you already have a very large presence here to begin with.
E
Eric Guter1:20
We do. We have a number of facilities in the region, all connected via pipeline. We've been serving the industrial heartland since about 2008 and supplying all of the industrial customers. So this is just a natural extension and transition and progression of our business today. So in addition to this project, we have projects coming up all around the globe that we have announced and are underway.
C
Chris1:46
Wow. So again, we know Air Products well, we're huge fans of the work you're doing. Others who are watching may not know Air Products as much. Can you give us just a bit of a sense of Air Products as a company and what you're playing in?
E
Eric Guter2:10
With hundreds of miles of dedicated hydrogen pipelines, and now as the world rushes forward to decarbonize, hydrogen is a big component of that decarbonization effort. So it's just a natural extension of our business. We've been producing hydrogen and distributing and delivering that to our customers for over 60 years. We've been in hydrogen mobility applications for over 30 years. So for us, this is just what we've been doing, and the time now is great because this is where the future is. This is where the public wants to go in terms of decarbonization, and we're happy to be ready to offer these environmental solutions.
C
Chris2:48
Yeah. And meeting our climate objectives by 2050 or earlier is a massive global challenge, and there's probably nobody better placed in the world. You have billions of dollars of announced projects underway, all associated with decarbonized hydrogen all around the globe.
E
Eric Guter3:16
So I've been doing this for 27 years. I kind of get a chuckle at home because for the first 25 years of my career, my family had no idea what I did because it was always in hydrogen. And all of a sudden, they get it. From maybe not that known to now like a global superhero helping save the planet. That's fantastic.
C
Chris3:33
Okay, so let's talk a little bit about the projects you've got going here. I know you're hoping to get groundbreaking relatively soon. Can you give people a sense of just the scale of what you're actually going to build here in the Edmonton region?
E
Eric Guter3:46
Yeah, so this is just another world-scale hydrogen production facility, slight redesign to allow us to achieve over 95% carbon capture. So I think of these facilities as almost carbon-free. In addition to that, as you pointed out, we have liquefaction, so that gives us liquid hydrogen, which is very important for merchant customers and especially mobility customers because you need energy density when you move this hydrogen around. You need supply chain resiliency, and that's what liquid hydrogen really does. And we're also going to make decarbonized power with that hydrogen. So instead of using natural gas-fired turbines, we're going to use hydrogen-powered turbines, so essentially clean power for our own demand and also export to the grid.
C
Chris4:41
You know, we've talked a little bit in prior sessions about just the scale of this project. This isn't just a service for Edmonton and the 1.5 million people that live around the region. This is really like a Western Canada and potentially bigger as you build it out.
E
Eric Guter5:11
More in distribution.
C
Chris5:14
And again, for people that aren't familiar with this region, they may not understand or know just the scale of the industrial heartland that you just mentioned. So they've got around 40 billion in capital projects already there. Some of the world's biggest energy companies are there, people like Nutrien are there and fertilizers. They've got a plan to build another 30 billion worth of heavy industry in that area by 2030. And with Air Products pipelined right into that, you're not only helping decarbonize trucks and buses but all kinds of industries that are really challenging to reduce their global footprint.
E
Eric Guter5:48
That's right. So hydrogen today is produced at quantities of something like 100 million metric tons annually around the globe. That's predominantly used in industrial applications. We can then leverage that into what we call other hard to abate sectors like heavy duty transportation, buses and trucks, which will run on hydrogen in the very near future. Some are doing it now, a lot of demonstration projects going on. So we can help decarbonize the transportation sector and then also other hard to abate industrial sectors beyond what we do today, in industries like steel and cement manufacturing.
C
Chris6:36
Absolutely. It's interesting, we've been having conversations with companies in Germany and some in Asia about trying to decarbonize their global footprints, and hydrogen is absolutely central. So when we talk about your project helping those projects, it creates this really positive knock-on effect.
E
Eric Guter6:53
Absolutely. Canada is such an exciting place for this. Not only for domestic use but also for export markets in these other regions that rely on other countries for their energy security.
C
Chris7:20
Absolutely. You know, we talked earlier about liquid, and we've got a hydrogen vehicle here. Nikola is here, Bison Transport has one that's a diesel hydrogen blend. And again, we've got buses that we're buying. All these pieces to help decarbonize the transportation sector, and we actually just had some announcements about that a minute ago. Can you just talk about what liquid versus gas is so that the average person might understand that?
E
Eric Guter7:50
Yeah, so gaseous hydrogen is simply that, it is a gas. It actually is what's used in many industrial applications. Liquid hydrogen provides the energy density to move it around in large quantities and also provide storage and resiliency, just like a traditional refueling station. And so we do this already quite a bit. We have over 250 executed projects in 20 countries around the globe associated with mobility. So we're so excited about what OEMs are doing to bring vehicles to the fore and happy to be able to bring that kind of total supply chain production, distribution, and dispensing for the vehicles.
C
Chris8:40
When you look further out, so let's say this is built, you look in the future. How does this facility, whether it's liquid or gas, how does that fit into your larger strategy?
E
Eric Guter8:52
Well, this is just the start. I'm so excited about our growth ambitions. It's just such an exciting and very fortunate place for me to be.
C
Chris9:16
Absolutely. And I keep thinking about, and we've been talking about, and all the questions have asked about how are you helping other people? How are you helping heavy industry? How are you helping the trucking and the busing? But Air Products is also reducing emissions and thinking sustainably. Can you just talk about what you're doing inside your company around reducing emissions and what your own footprint is?
E
Eric Guter9:42
Yeah, so this is, as I touched on, this is what we're doing in trying to bring forward these new and decarbonized projects really with advanced design, just like we're talking about here in Edmonton, where we're integrating things that we haven't traditionally done with this power. I think we can't seem to go fast enough because everyone is really interested in things we're doing and the products that we're providing. And we're excited about the collective leadership that's been shown to really drive this forward and, to your point, try to beat this goal by 2050 with lots of time to spare.
C
Chris10:28
Yeah, absolutely. Well, it's so funny that the comment about people wanting it to be done faster absolutely resonates with us. We would be thrilled if you guys were open tomorrow, let alone doing groundbreaking tomorrow. You probably know, and I know you helped us, we put together an award submission through Business Facilities Magazine on Deals of the Year, and your project actually won for Canada. And what was really at the heart of that was sustainability and just proving that we could do this and actually benefit the world. So I want to first just say thanks, because anytime we get an award, we're pretty thrilled. We can kind of share it with you.
E
Eric Guter11:25
We're so honored by that. To be rewarded or acknowledged for the things that you're doing, we're really appreciative of that. But really, the credit goes to the collective folks that we have worked with over a long period of time: the City of Edmonton, Strathcona County, other regions, the Government of Alberta, the federal government. We have received tremendous support and encouragement to make that happen. So really, it's nice to be recognized for that, but the reality is this is a collective award for everyone.
C
Chris12:11
You know, all these other things, whether it's solar or wind, what does that look like for the average person? What does that look like for people that work in those industries to transition? And I think hydrogen is one where the skill sets are pretty similar. I think your project alone is going to employ something like 2,000 construction workers in the build, and those are going to be great jobs for probably, well, we want it done tomorrow, but over a couple of years.
E
Eric Guter12:37
This is a great point that you bring up because I think often times we focus on we want this, not that. But the reality is we have to create enough space for everyone. So to your point, the things that we're doing, these are high paid, highly technical, skilled jobs both in the operation and construction of the facilities. The skill sets are very transferable. So we're really excited about the opportunity to help people transition into this dream, really.
C
Chris13:13
Absolutely. And we've talked a lot across our region about the direct, the indirect, and the induced benefits of this project. Again, 2,000 immediate jobs in construction, but you're looking at that steel fabrication, you're looking at concrete pours, you're looking at carpenters, painters. There's companies across the region and really across Western Canada that are going to be bidding and getting work. So that next step and that next knock-on, we're going to see it in hotels, we're going to see it in homes, we're going to see it in almost every sector of the economy. It's going to be hit by this immediately, let alone what it unlocks in the hydrogen economy. It has such a multiplying effect.
E
Eric Guter13:54
And we haven't even touched on the innovation that this can bring to bear. So it just creates such an economic vibrancy associated with a single project, and we're hoping this is just the start.
C
Chris14:22
Yeah, right. We're hoping that too. Can you talk just a little bit about the process to make the decision to invest in this region? While we think we're the best place in the world to make this kind of investment, it's super competitive. We've got delegations here from the UAE, we've got people here from Australia, from a number of other places that are also really driving hard on hydrogen. Can you give us a bit of a sense of why you chose this place?
E
Eric Guter14:48
Canada has been a leader in an unwavering commitment to climate change objectives. And so with that, we look to the most proactive geographies and regions. Everyone's on a slightly different time horizon, but we have to get started. And we look to the most proactive geographies and regions, and we're so fortunate to have worked here and to continue to be doing work here.
C
Chris15:21
Okay, love to hear that. And for us, we talk to investors all the time, and the three things that it often comes down to is predictability, transparency, and speed. So we're really working hard to push that message to governments and others to say make it clean, make it clear, make that path forward so it eliminates as many of the risks as possible, because the last thing you want to do is strand capital. So it's good to hear that we're doing at least this part right on the hydrogen piece.
E
Eric Guter15:50
Absolutely. Like I said, pleasure to be back here. And you know, we've ever had hydrogen awards in Canada. You're up for a couple of them, maybe you personally, but Air Products certainly is the company. Can you talk a little bit about what you've got at least being nominated for?
C
Chris16:19
Yeah, I think our project itself is being nominated for an award, as well as our liquefaction facility for the mobility application. So like I said, we're excited to be honored, but this is a collective effort. We couldn't do it without all of these collaborating bodies that help us bring this together. We're thrilled to be at this conference. It's an amazing event. I can't believe the size and scale of it, especially right after the lockdown has ended. So really, you know, most of today so far this morning, have you been to other shows during this pandemic? Is this the biggest thing you've been to?
E
Eric Guter17:20
This is by far the largest I've been to. I've been to a couple. This is by far the largest. The diversity of attendees is really what's encouraging. Everyone has realized this is what we have to do. We're all going to work together to figure this out, and so that's reflected here in just the diversity and number of attendees and different companies supporting this, and government as well, right in the middle of it.
C
Chris17:42
Yeah, perfect. And again, I know you know this, but it's good just to say it. Rachel Smith, who's your local head of country, phenomenal the work she's doing, the leadership she's showing this region, just amazing. The whole team, you know, this thing we're doing with Invest in Canada, every single time it's absolutely, and I know that's absolutely given an absolutely jam-packed schedule of things you guys are trying to do. So just want to say thanks so much for how much you're giving back to this community.
E
Eric Guter18:24
Oh, we thank you. Thank you for the opportunity. This is what's important to us, is about that relationship that we form with the local communities where we do business. It can't happen without everyone working together. So we're so appreciative of the long-standing relationship we've had with everyone here and really looking forward to the next announcement, maybe the next time we can talk together.
C
Chris18:44
Yeah, that sounds good to me. So probably the next time we'll see each other, I'm hoping, is going to be your groundbreaking. I know we're trying to get some stuff to happen to make that happen, including letting the snow stop at some point. We've got a plan over the next 10 years to build this into the world's largest hydrogen show. So I think we'll probably see each other every year for the next 10 at least. I sure hope so, and I really look forward to that.
E
Eric Guter19:20
Okay, well thanks so much, Eric. Again, this has been a conversation we've had here with Eric and Air Products about the world's largest net zero hydrogen facility that's being built right here in the Edmonton region. We're going to take a quick break and then we'll be right back with more from the Edmonton Region Hydrogen Hub stage inside the Canadian Hydrogen Convention. See you soon.