Calgary-based Atco Ltd. has made an opening move on tapping Alberta natural gas to fuel low-carbon hydrogen exports to Japan.

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Atco also clinched an agreement to create an “integrated clean fuels supply chain” between subsidiary Canadian Utilities Ltd. and Kansai Electric Power Co. The plan is in early stages, with no  volumes, production costs or construction schedules disclosed.

The energy trade plan was described as “spanning the entire value chain.” Atco Vice President James Powell said there was “a significant opportunity to become a supplier of clean fuels, in addition to our nation’s energy exports.”

The hydrogen connection would respond to carbon reduction emissions control goals in Canada and Japan, the partners noted. According to a pre-feasibility...