This demonstration project will deliver LNG to Alberta customers with a wells to wheels carbon intensity of under 62 g CO2 e/MJ in comparison to diesel fuel with a Canadian average carbon intensity of 100 g CO2e/MJ. The project is aligned with the objectives of the new Canadian Clean Fuel Standard and reduced carbon taxes compared to diesel fuel offsets.
Success from the demonstration project could then lead to expansion of over 1.8 million litres per day to support customer demand at a delivered cost well below that of diesel. The novel Linde LNG facility uses excess nitrogen from existing air separation plants in Alberta with negligible electricity consumption or emissions.
In Canada, natural gas costs less than diesel for an equivalent amount of energy. This discount has created interest in using LNG as a diesel substitute. LNG for domestic use is produced by small-scale liquefaction facilities which are much smaller than facilities built for export. However, the major challenge has been relatively high capital and operating costs of small scale plants per unit volume of LNG. The Linde LNG technology provides a break though approach to these barriers combined with its ultra low carbon offset benefits.
The Linde LNG demonstration project will be developed on industrial zone land located in Fort Saskatchewan Alberta near the Linde Air Separation facility. The project will also include positioning of LNG dispensing skids at customer sites and supports conversion of trucking or stationary equipment to use LNG as a diesel replacement fuel.