Not only is involving First Nations communities early in project planning and development an important step for oil and gas companies, this focus needs to be carried over to emerging fuels.

This was the opinion shared by multiple members of a recent panel discussion moderated by David Mercer, director, office of technology at Fluor Corporation. He asked if there is a different approach to clean ammonia projects and First Nations engagement.

“I think in the world we are in today and moving forward, it doesn’t matter what type of infrastructure we are trying to build — Indigenous participation is a key element of it,” said panel member Adam Chalkley, director, low carbon development at Enbridge Inc.

He said the company has embraced it with different opportunities.

In September 2022, Enbridge and 23 First Nation and Métis communities announced an agreement whereby the communities acquire, collectively, an 11.57 per cent non-operating interest in seven Enbridge-operated pipelines in the Athabasca region of northern Alberta for $1.12 billion.

Moreover, Enbridge will co-develop the Open Access Wabamun Carbon Hub, west of Edmonton, with First Nations Capital Investment Partnership (FNCIP).

Treaty 6 Nations — Alexander First Nation, Alexis Nakota Sioux Nation, Enoch Cree Nation and Paul First Nation — formed the FNCIP to pursue ownership in major infrastructure projects. The Lac Ste. Anne Métis Community will also receive an opportunity to pursue ownership in future carbon transportation and storage projects associated with this Hub.

“That doesn’t mean the journey is done — this is just the beginning,” Chalkley added. “We are happy with what we have accomplished but know we have a long ways to go. So, in terms of developing ammonia export infrastructure, it is no different. We need to engage earlier and earlier and earlier.”

When Enbridge engaged early on, regarding the Hub, he said the company had an idea but didn’t know how it was going to look.

“There were more parts floating around than they were bolted down, but I can tell you [retrospectively] having done that, it was the right call,” continued Chalkley. “I think that is part of the mindset and evolution for Indigenous engagement — [engage] early on.”

W. James Powell, vice-president of clean fuels at ATCO Group participated in the discussion, as well.

“… In our mind, philosophically we believe active and early engagement with Indigenous communities is critical in the marketplace today,” he said.

“Not only on the stakeholder engagement side, which people have been doing, but also on the economic partnership perspective … and start moving it away from a stakeholder relations engagement play and into economic reconciliation, as well.”

Powell noted that ATCO engages First Nations communities in both a consultation capacity and in terms of investment for many of its projects.

“[We] will continue to do so as we advance our hydrogen, sequestration and ammonia projects,” he said.

The executive characterizes active engagement with First Nations on hydrogen and ammonia developments as, in part, determining the type of involvement the community would like to pursue in the project.

Moreover, it is also about establishing “how they would like to get engaged [as opposed] to us engaging them — bring them into the fold early on and see how they want to participate.”

As a new resource pathway, Powell said, “ammonia exports for energy use can be designed from the outset in partnership with Indigenous peoples.”

Supply chain wild card

Mercer wondered aloud about some developers targeting commercial operation of clean ammonia projects as soon as the latter half of 2027, considering the fact that a year earlier, the industry in general experienced a significant supply chain disruption that impacted deliveries of long-lead equipment.

On meeting a late 2027/early 2028 timeframe for clean ammonia commercialization, panel member Curt Graham, Fluor’s vice-president, office of technology, acknowledged there is a risk.

“Most suppliers have recovered a little bit and lead times have dropped — it has gotten a little bit better. But one big exception to that has been electrical equipment,” he added.

Lead time on electrical equipment such as large transformers, control rooms are seeing as much as two years lead time.

According to Graham, “2027 is pretty ambitious if you haven’t figured out what you are going to buy and haven’t already started prequalifying your vendors. How that is going to play out as we move forward is a big wild card.”