Province’s proposed Bill 52 is little more than another carbon tax
By Lethbridge Herald on April 26, 2025.
Editor,
Nathan Neudorf just announced proposed Bill 52 to blend hydrogen, at “additional system costs”, into natural gas used to heat our homes and fuel our industries. Hydrogen blending appears mandated by this proposed legislation as “utility providers will also be required to ensure community support on hydrogen blending project.” These costs adding to natural gas costs are effectively a tax on carbon.
Why is this carbon tax being proposed when Federal political parties are eliminating the Federal Carbon Tax? That is a question for the Government of Alberta and Minister Neudorf! But I expect that it is part of an under the radar means to have ratepayers “support”/subsidize the hydrogen industry that Alberta is actively promoting.
How much tax? Based on initial online search, the grey hydrogen BTU cost equivalent to natural gas is a multiple of 3-5 times. As hydrogen processes move from emitting carbon to the atmosphere, as current grey hydrogen does. Multiples will rise with move to blue hydrogen that adds carbon capture and storage costs. Should that proceed to green hydrogen multiples could be 10 or more times natural gas cost per BTU. This process migration could make it an escalating tax. Minister Neudorf should be able to provide details of these “additional system costs” which should reflect the highest safe level/percentage of hydrogen blending which appears to be 20 per cent, not five per cent pilot projects.
Cost of hydrogen versus natural gas isn’t the full cost of this blending there are the utility rider costs. Injection of more volatile hydrogen probably will entail modifications of utilities to safely receive, blend, transport and ongoing monitoring of blended gas in their systems. Required capital investment costs along with incremental non-capital operating expenses are part of “additional system costs” and should be disclosed as a cost of this blending tax.
Consumers deserve to be fully informed including the safety aspects of hydrogen blending. And if any modifications of their furnaces or appliances are required. Information should include expert cost benefit studies (environmental value for dollar spent and reflect the elimination of the Federal Carbon Tax). Forums for pro and con input to the Government on this matter should be held before Bill 52 is introduced.
Minister Neudorf needs to put on his Affordability mandate for consumers versus industry subsidies and disclose the all-in “additional system costs” Bill 52 means for natural gas rate payers in these times of escalating costs of living.
Barry Harper
Lethbridge
10-9
A well written letter. But when has this government ever conducted an ‘expert cost benefit study’ on anything they have thrown into legislation?
Hmmm: Coal policy, no. Health services reorganization and privatization, no. Provincial police force, no. Pension plan capture, no. Renewable energy barriers, no. Infrastructure protection intimidation, no. FOIP reversal, no. Transparent procurement, no. Vaccine support, no.
… Closure of Alberta parks, no. Dumping education taxes onto municipalities, no. Hobbling green infrastructure, no. …