Report: Importing U.S. hydrogen more economical for Canada’s steel industry, raising concerns over blue hydrogen risks.

A new report has found that it is more economical to import United States hydrogen made from natural gas than to manufacture it locally from Ontario electricity. The report estimates that ArcelorMittal Dofasco will need 492 tonnes of hydrogen per day to convert from natural Gas to hydrogen, which is equivalent to six per cent of Canada’s current total hydrogen production of 8,200 tonnes per day. It also estimates that it would require 27 gigawatt hours of power per day and would have to compete for power with growing electricity demands from vehicles, heat pumps and agriculture. If the report is accurate, it could have a significant impact on the steel industry in Canada and the United States. However, it has been criticized by some experts who say that it overlooks some of the risks associated with blue hydrogen, such as the potential for methane leaks and the reliance on U.S. trade and environmental policy.