Green hydrogen and billions in Shawinigan

A green hydrogen producer convinced Quebec to offer him a large energy block for a project worth billions that would see the light of day in Shawinigan, we have learned The Press. In return, the developers propose to invest in the construction of around a hundred wind turbines and a solar park to complete their needs.




These details will be revealed by TES Canada on Friday, in Mauricie. The Quebec Minister of Economy, Innovation and Energy, Pierre Fitzgibbon, as well as the federal Minister of Innovation, Science and Industry, François-Philippe Champagne, must be present at the announcement. According to our information, the project bill hovers around 4 billion if we take into account the energy self-production portion.

Green hydrogen – which requires a lot of energy – is considered an alternative solution in heavy industry (cement plants, aluminum plants and steelworks), still dependent on fossil natural gas. A subsidiary of the Belgian firm Tree Energy Solutions, TES Canada was co-founded by businesswoman France Chrétien Desmarais, daughter of former Prime Minister Jean Chrétien and wife of André Desmarais, deputy chairman of the board of Power Corporation of Canada . The company obtained an energy block estimated at 150 megawatts (MW), the equivalent of approximately 30 times the power of the Bell Center.

“Hydrogen will be intended for use in Quebec,” say the promoters, on the website of the “Mauricie project”, where we learn that commissioning would take place in 2028 and that 200 permanent jobs would be created in the region. after startup.

On Wednesday, TES Canada did not comment on the information collected by The Press.

What is green hydrogen?

Currently, 95% of the world’s hydrogen is produced from fossil fuels. Hydrogen can be produced by electrolysis of water. This process involves passing an electric current through water. This allows its molecules to be broken down to then extract the hydrogen. We speak of green hydrogen when the current used comes from a renewable energy source, such as hydroelectricity.

Source: Government of Quebec

TES Canada is part of the list of 11 requests selected by Minister Pierre Fitzgibbon to share approximately 1000 MW. Companies wishing to launch into the production of hydrogen are rushing to the doors. Hydro-Québec has received requests totaling 23,000 MW, including 9,000 for green hydrogen.

This is far too much, according to the minister.

“We can’t make hydrogen, we don’t have electricity […]we’re going to do a little anyway,” said Mr. Fitzgibbon, when Hydro-Québec reported the increase in industrial demand.

Question marks

Several questions may await the promoters on Friday. It is currently unknown where the money will come from. Quebec and Ottawa would not be directly involved in the financial arrangement.

Founded in 2019, Tree Energy Solutions is still considered a start-up and its Canadian subsidiary has existed for barely a year. In July 2022, Tree Energy Solutions was valued at around 940 million (700 million euros), according to the Financial Times. Institutions such as the British bank HSBC and the Italian financial group UniCredit are among its “partners and shareholders”.

Throughout the world, its projects are still in the development phase. In the United States, the owner of TES Canada is collaborating, among others, with the French energy giant Total to potentially establish a synthetic natural gas production site.

In Mauricie, the question of social acceptability risks quickly entering the public space. The company’s hydrogen electrolyzer, whose capacity is estimated at 500 MW, must be installed in the Shawinigan industrial park, which should, in principle, not pose a problem.

Since the 150 MW that must be provided by Hydro-Québec will be insufficient, the promoters would like to erect more than a hundred wind turbines – which would constitute one of the largest parks of its kind in the province – within a radius of one thirty kilometers around Shawinigan. Twelve municipalities were identified and informed. It remains to be seen how their citizens will react.


Reached by telephone by The Press, the mayor of Shawinigan, Michel Angers, did not want to comment on the different aspects of the project. However, he had difficulty containing his enthusiasm for the announcement scheduled for Friday.

“It’s been a long time since this happened. [l’annonce d’un tel projet], said Mr. Angers. It will be very interesting. All our land is reserved for energy efficiency projects. Friday will be a first departure. »

Two shutters

The Quebec complex of TES Canada should have two components. There will be the production of green hydrogen as well as “renewable and 100% green” synthetic natural gas. At the time of writing, we did not know the quantities that would be produced.

Énergir is a potential customer for this synthetic natural gas, according to information collected by The Press. It would be sent to the Quebec distributor’s industrial customers through its network, which supplies the Shawinigan industrial park.

“The project would allow Énergir to access the complementary uses of green hydrogen by producing, in particular, a large volume of third-generation renewable natural gas in order to accelerate the implementation of this innovative avenue,” affirms Énergir, in an email. We will not comment further at this time. However, we will be present on Friday to explain our role in this project. »

TES Canada is led by Éric Gauthier, a former executive at Power Corporation responsible for private investments in the renewable energy sector. Next to Mme Chrétien Desmarais among the directors, we find in particular Robert Tessier, former chairman of the board of directors of the Caisse de dépôt et placement du Québec (CDPQ) and former president and CEO of Gaz Métro (the former name of ‘Energir).

Tree Energy Solutions co-founders Marcel Van Poecke and Paul Van Poecke also serve on the TES Canada Board of Directors. The latter present themselves as two businessmen with more than three decades of experience in the energy sector, where they have held numerous management positions.

With the collaboration of Tommy Chouinard, The Press

In addition to TES Canada in Mauricie, the hydrogen sector has other promoters.

Hy2gen

The Caisse de dépôt et placement du Québec is a shareholder in this German company which wants to build a $1 billion plant in Baie-Comeau to manufacture hydrogen and biofuels, such as green ammonia and kerosene-ethanol. The completion of the project, planned for 2026, was delayed to 2028 due to lack of electricity availability. To increase its chances of obtaining the 300 megawatts of electricity it needs, Hy2gen has changed its strategy. Its production, originally intended for export, will be dedicated to the Quebec and Ontario market.

Energy

Enerkem wants to power its future Varennes biofuels plant with green hydrogen. Hydro-Québec, which had agreed to launch itself into the production of hydrogen to supply the Enerkem plant, changed its mind and withdrew from the project to build an electrolyser intended for factory. Enerkem and its partners in Recyclage Carbone Varennes, this $1 billion project, have entrusted the American company Cummins with the contract to build the electrolysis system which will supply the plant whose start of activities, postponed many times, is planned for 2025.

Carbon Hydrogen

Charbone Hydrogène’s first green hydrogen plant is currently under construction in Sorel-Tracy. This is the first phase of a facility that will eventually number five and is expected to be in production next year. These are modular and scalable installations that do not have the same significant electricity requirements as other projects. The future production of Charbone in Sorel-Tracy is already sold to Superior Propane for the needs of its industrial customers who already use hydrogen in their processes and who want to replace it with green hydrogen.

Learn more

  • 800,000 tonnes
    Quantity of GHGs that the Mauricie project could eliminate annually in Quebec

    TES CANADA

    1000
    Number of jobs in Mauricie created by the construction phase of the project

    TES CANADA


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