Replacing natural gas with hydrogen could cause “rate shock” for consumers in the absence of new incentives or subsidies to offset the costs of blending it into the gas system, according to the Alberta Utilities Commission (AUC).


“The Alberta government may want to consider supports for customers such as credits, tax rebates or subsidies,” an AUC hydrogen inquiry report stated. “The overall costs of hydrogen blending and potential rate shock to customers must be considered.”

Alberta Natural Gas Minister Dale Nally, in issuing the report, made no subsidy promises. He credited the AUC with “identifying areas that require further work and clarification, including critical pieces like the potential impacts on consumers.”

As an industrial material used in oilsands...