A new gas pipeline project in Alberta, Canda, aimed at decarbonizing industry, is facing scrutiny over its reliance on unproven carbon capture and blue hydrogen technologies.

The $ 2 billion ATCO Energy Systems' Yellowhead Mainline project, which will transport high-pressure natural gas for more than 200 kilometres from Peers to Fort Saskatchewan, is expected to supply 1.1 billion cubic feet of gas daily to the region by 2027. 

The gas will fuel petrochemical companies, low-carbon cement producers, and hydrogen manufacturers. The company has already filed a regulatory application with the Alberta Utilities Commission, according to a report published by the Globe and Mail.

ATCO said the project will be an integral part of a lower-carbon energy ecosystem, but critics argue that carbon capture and storage (CCS) technologies have consistently underperformed expectations, following Capital Power’s cancellation of its C$2.4 billion CCS project in May due to economic infeasibility.

The company is also pursuing hydrogen producers as customers. However, blue hydrogen, produced from natural gas with CCS, has been criticized as a marketing ploy by the fossil fuel industry. 

Researchers warn that its overall emissions can be worse than coal, especially when methane leaks during transportation are considered.

Additionally, Edmonton's Energy Transition Climate Resilience Committee has denounced blue hydrogen as a poor decarbonization tool and called on the city to abandon its pursuit.