The duty interview with Éric Lachance, three years after his arrival at the head of Énergir. The one who, according to his own expression, took “the witness that Sophie Brochu gave him” when she left the organization will have to orchestrate the most important transformation of the company in the coming years. How can a gas distributor position itself as a player in decarbonization? What place will hydrogen have in its portfolio? How does he respond to Énergir’s criticisms? Update on a company that traditionally evolves in a sector condemned to decline.
The very morning of the interview with Éric Lachance, The duty revealed that Énergir had failed to achieve the goal of injecting 1% renewable natural gas (RNG) into its network. The subject quickly imposed itself. “The GNR is the initiative that is the key to decarbonizing the network”, reminded the boss of the largest gas distributor in the province. Conceding that the planned threshold had not been reached, he assured in the same breath that the supply contracts signed in recent months already made it possible to reach the thresholds established for next year.
By 2025, 5% of gas volumes delivered must consist of RNG. To meet Quebec standards, this threshold will have to reach 10% by 2030. “With electrification, the volumes of gas consumed will drop more and more rapidly. Today, we talk a lot about 10% of GNR in 2030, but at equal quantities, the share of GNR will necessarily increase because the volume of gas consumed will decrease. »
We are moving from a company whose objective was to sell the greatest volume of gas possible to a niche company more focused on the value of what we can offer.
An anticipated decrease in the consumption of hydrocarbons which forces the company to redefine itself: “We are moving from a company whose objective was to sell the greatest possible volume of gas to a niche company more oriented on the value of what we can offer. »
Until recently, the objectives related to decarbonization were spread out until 2050, he recalls. “But the latest positions of the IPCC [Groupe d’experts intergouvernemental sur l’évolution du climat] emphasize the importance of moving quickly. The 2030 horizon has become much more important than before. This led us to ask ourselves the following question: To dive or not to dive? We decided to dive. »
Thus, the two largest Quebec energy distributors — Énergir and Hydro-Québec — formalized a partnership in 2021 aimed at deploying dual-energy systems in the building sector. The objective: to replace natural gas heating systems in the area with systems that heat with electricity except during winter peak periods, when natural gas could provide support. An approach which will make it possible to obtain added value for a smaller volume of molecules distributed.
And whatever the critics think, natural gas will have its role to play in the decarbonization of Quebec, he assures. Because now, Énergir is a regular critic. Organizations vigorously and frequently denounce this partnership. In May, a group of organizations – including Greenpeace, Nature Québec and Équiterre – estimated that the agreement could cost Hydro-Québec at least $7.2 billion in lost revenue and in monetary compensation to Énergir by 2050. .
This figure is incomplete, replies Éric Lachance: “We not only looked at the cost for customers, but also the cost for the Hydro-Québec network if everything were electrified and what it will cost the government in subsidies. Instead, we arrive at a savings of $2.7 billion. He says he deplores this war of figures, which, according to him, excludes from the debate the “immediate benefit in terms of reducing greenhouse gases”.
Another criticism regularly raised: the import of shale gas from the United States. Isn’t it paradoxical to get supplies of gas from fracking, when Quebec prohibits the practice on its territory? Éric Lachance sees no paradox in this.
“In our opinion, the debate should rather focus on the fact that there are good and bad producers”, he asserts. Énergir is signing more and more contracts based on certification awarded by the American firm Equitable Origin. Obtaining it stems from an analysis of the practices of gas producers: water consumption, drilling technologies, noise and cohabitation with the neighbourhood, etc.
“There are several criteria. And we even pay a premium for these producers. More than 40% of natural gas supply currently comes from certified producers. The distributor estimates that it can increase the certified supply by 20% annually. Six years from now, the whole of the supply could have received the seal of Equitable Origin.
Need for diversification
Énergir’s history has been marked by a series of transactions since its privatization in 1957. A multitude of companies have been shareholders over the past 65 years, including Hydro-Québec, Valener and Enbridge. However, in 2019, it is Noverco – owned by the Caisse de depot et placement du Québec – which owns the company. A situation that works in favor of Énergir, believes Mr. Lachance: “ [La Caisse de dépôt] is a controlling shareholder with a very long-term vision. »
In addition to gas distribution, Énergir has for the past fifteen years made acquisitions in the energy sector by buying, for example, the American company Green Mountain Power. Result: “What means that our energy today, overall, is half electricity and half gas; it is also half Quebec and half United States. »
This diversification of its portfolio, Énergir also intends to extend it to the production and distribution of hydrogen. The distributor is currently conducting tests during which it injects a small quantity into closed circuits to gauge the reaction of its network.
There is no question, moreover, of becoming a large-scale hydrogen distributor, he says. “There are parts of the world where people are really thinking about and testing hydrogen injection for building heating on a larger scale. We are not here. »
Énergir intends instead to carve out a place for itself in the hydrogen sector by using its network to store the molecule: “What we are aiming for is to support customers who today are consumers of gray hydrogen [produit à partir de gaz] in their conversion — depending on their technological background — to green hydrogen [produit à partir d’énergie renouvelable]. »
He specifies: “One could, for example, be co-owner of a hydrolyser which would supply green hydrogen to a factory. And if, at certain times, there is an excess—5%, for example—well, the excess volume could find its way into our network without affecting its integrity. Énergir expects to be in a position, within two years, to begin a pilot project with a company. “That’s why we look at the capacity of our network to receive it. »