The Legault government assured Thursday that the green hydrogen production plant in Shawinigan will be completely legal.
The opposition accuses Minister Pierre Fitzgibbon of wanting to dismantle Hydro-Québec’s monopoly on electricity production by authorizing the $4 billion TES plant project.
The factory will in fact have its own wind turbine and solar panel park located in the neighboring municipalities of Mauricie.
According to Québec solidaire (QS), this is a breach in the rules which provide that the electricity production unit must be located near the factory.
MP Haroun Bouazzi mentioned article 60 of the Energy Management Act which provides that self-production must be on a company’s land or on an adjacent location.
However, the TES project provides for energy production over 200 square kilometers, in 12 municipalities, he noted.
“Can he admit that this Desmarais project in Shawinigan is illegal in the eyes of current law? » the MP asked Mr. Fitzgibbon during question period.
“I confirm in this House that the TES Canada project is legal, and I encourage the member to see contrary opinions if he wishes. »
Self-production is permitted for companies to which Hydro-Québec cannot guarantee megawatts, provided that it is on private land and that they supply their activities without going through the state company’s network, he said. He specifies.
“It is a policy which is very healthy, which has always existed and which will remain”, he decided.
The government thus encourages companies that wish to do so to produce their own electricity as long as it is not transported by the Hydro-Québec network.
“It is not only permissible, it is desirable. So, I encourage companies to copy the TES Canada model. »
A 4 billion project
Remember that the company is investing 4 billion without any public funds to build a “green” hydrogen production plant in Shawinigan, a fuel which is used to reduce dependence on hydrocarbons in heavy transport and industry.
It takes a lot of electricity to produce hydrogen from water through an electrolysis process. It currently costs more than the products it replaces, such as diesel.
It can supply industrial sectors where it is currently difficult to reduce greenhouse gas (GHG) emissions, such as cement factories. In heavy transport, where batteries do not have the necessary capacity, hydrogen becomes crucial.
Hydrogen is referred to as “green” when it is produced from renewable energy sources. This plant will be powered 70% by its own wind and solar farms, and 30% by Hydro-Québec energy.
But how can hydrogen converted into natural gas be considered “carbon neutral”, when natural gas emits GHGs during its combustion? This is because the process for making RNG requires carbon dioxide and therefore recovers GHGs.
During peak periods for Hydro-Québec, the plant undertakes to be self-sufficient in energy so as not to strain the network.
Hydrogen is a highly flammable gas. Its uses are numerous, either in its original state or converted into renewable natural gas (RNG).
The plant will produce 68,000 tonnes per year from 2028. The main customer will be Énergir, which will produce around a fifth of its RNG, or 115 million cubic meters, with this hydrogen by 2030.
The construction of the facilities is expected to create 1,000 jobs and subsequently operation will require the hiring of 200 workers.
The main shareholder of TES Canada is the company Tree Energy Solutions.