Transportation of Hydrogen/Ammonia by Rail
Location: National
Issue/Source: Transport Canada’s work with respect to the transportation of hydrogen and its derivatives for the purpose of exportation / TRAN
Date: March 2024
Suggested Responses
- Transport Canada is working in support of the 2020 Hydrogen Strategy for Canada. This Strategy seeks to position Canada as a global hydrogen leader, cementing this low-carbon and zero-emission fuel technology as a key part of our path to net-zero carbon emissions by 2050.
- The economic benefits and the urgency of the proposal by industry are well understood by Transport Canada and Natural Resources Canada.
- Transport Canada is organizing various parties with a role in the transportation of hydrogen and its derivatives for the purpose of exportation.
- Transport Canada is committed to engaging with Indigenous Peoples, provinces, and key industry stakeholders on the way forward. Safety and security remain our top priorities.
Background Information
- Transport Canada is working closely with Natural Resources Canada and other stakeholders to ensure alignment with the overarching 2020 Hydrogen Strategy for Canada. This Strategy seeks to position Canada as a global hydrogen leader, cementing this low-carbon and zero-emission fuel technology as a key part of our path to net-zero carbon emissions by 2050.
- Hydrogen energy is expected to play a key role in the future global energy mix. Given the nature of domestic hydrogen production, strategic infrastructure assets (e.g., deep water ports, rail, and pipeline networks), and federal incentives (e.g., Clean Hydrogen Investment Tax Credit), Canada is positioned as a potential bulk exporter of hydrogen to East Asian markets.
- To reflect this demand, Transport Canada recently created a directorate called the Transportation of Hydrogen Directorate. The new directorate is responsible for leading and coordinating the work of different parties around the transportation of hydrogen/ammonia for the purpose of export, including whether it would make sense to support an increase in the amount of ammonia transported by rail.
- Today, anhydrous ammonia is primarily used by the agricultural industry in Canada and is exported primarily to the United States in small quantities. The industry is now looking to transport ammonia in bulk to fill potentially large contracts for which bidding could begin as early as summer 2024.
- Canada has a robust regulatory regime governing the safe movement of dangerous goods (like ammonia) by rail, which is regulated under the Transportation of Dangerous Goods Act, 1992 and associated regulations, as well as the Railway Safety Act and associated rules and regulations, including the Railway Safety Management Systems Regulations, 2015 and Rules Respecting Key Trains and Key Routes.