Hydrogenics Corporation has announced that it has entered into an agreement with Enbridge Inc. to jointly develop utility scale energy storage in North America.
This relationship also includes an equity investment of CAN$ 5 million in Hydrogenics. The collaboration will bring together Hydrogenics' expertise in water electrolysis with Enbridge's expertise in the ownership and operation of natural gas pipeline networks and renewable energy generation. The parties will work together to develop utility scale energy storage projects within Enbridge's North American footprint. With 'Power-to-Gas', the hydrogen produced during periods of excess renewable generation will be injected into the existing natural gas pipeline network, proportionally increasing the renewable energy content in natural gas pipelines for essentially the operating cost of the electrolyzer. Small quantities of hydrogen can be manageable in existing natural gas pipeline networks. The utility scale energy storage leverages existing natural gas pipeline and storage assets to enable improved operability for the electrical system. Furthermore, the economics are further improved by leveraging existing gas generators to bring this renewable energy back to the electrical grid where, and when, it is needed most. The collaboration between Hydrogenics and Enbridge will initially focus on the deployment of utility scale energy storage in Ontario with the opportunity to expand into Enbridge's operations elsewhere.
This relationship also includes an equity investment of CAN$ 5 million in Hydrogenics. The collaboration will bring together Hydrogenics' expertise in water electrolysis with Enbridge's expertise in the ownership and operation of natural gas pipeline networks and renewable energy generation. The parties will work together to develop utility scale energy storage projects within Enbridge's North American footprint. With 'Power-to-Gas', the hydrogen produced during periods of excess renewable generation will be injected into the existing natural gas pipeline network, proportionally increasing the renewable energy content in natural gas pipelines for essentially the operating cost of the electrolyzer. Small quantities of hydrogen can be manageable in existing natural gas pipeline networks. The utility scale energy storage leverages existing natural gas pipeline and storage assets to enable improved operability for the electrical system. Furthermore, the economics are further improved by leveraging existing gas generators to bring this renewable energy back to the electrical grid where, and when, it is needed most. The collaboration between Hydrogenics and Enbridge will initially focus on the deployment of utility scale energy storage in Ontario with the opportunity to expand into Enbridge's operations elsewhere.
