The company TES Canada is investing $4 billion without any public funds to build a “green” hydrogen production plant in Shawinigan, a fuel that helps reduce dependence on hydrocarbons in heavy transport and industry.
“This is the first green hydrogen project in the country,” indicated Federal Minister François-Philippe Champagne during the press conference Friday morning in Shawinigan, accompanied by the Minister of the Economy, Innovation and of Energy of Quebec, Pierre Fitzgibbon.
The main customer will be Énergir, which will produce around a fifth of its “renewable natural gas” (RNG) by 2030, or 115 million cubic meters, with this hydrogen.
“This is Quebec’s largest decarbonization project for Quebec,” continued Mr. Champagne. In fact, all production is guaranteed in writing to meet the needs of Quebec and would thus reduce greenhouse gas (GHG) emissions by 800,000 tonnes per year.
“If we want to achieve our decarbonization objectives, we must focus on several renewable energy sectors,” including hydrogen, argued Mr. Fitzgibbon.
The construction of the facilities is expected to create 1,000 jobs and subsequently operation will require the hiring of 200 workers. The plant is expected to begin operations in 2028.
A high price
There are still risks and this sector is in its infancy, suggested the co-founder of TES Canada, France Chrétien Desmarais, daughter of former Prime Minister Jean Chrétien and wife of André Desmarais, of Power Corporation from Canada.
Indeed, green hydrogen costs more than the products it must replace, such as diesel.
“We can’t predict the future, but for now, things are going in the right direction,” she commented at the press scrum.
“At first I would sit in some offices and talk about it. They told me “I hear you, come back in ten years”. Now people are calling because they know there is a problem and something needs to be done. […] The price will perhaps eventually reach the price of diesel. »
She even mentioned the possibility of expansion to increase production, which will be 68,000 tonnes per year.
Energy-intensive but self-sufficient
It takes a lot of electricity to produce hydrogen from water through an electrolysis process.
The TES Canada plant will produce “green” hydrogen: this is how the fuel is called when it is produced from renewable energy sources. This plant will be powered 70% by its own nearby wind and solar farms, and 30% by Hydro-Québec energy.
The wind and solar farm project will be subject to review by the Office of Public Hearings on the Environment (BAPE).
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 GNR.
“Great potential for GHG reduction”
It thus represents “great potential for reducing GHGs”, explained Professor Bruno Pollet, from UQTR, during a technical briefing session.
It can supply industrial sectors where it is currently difficult to reduce GHG emissions, such as cement plants. In heavy transport, where batteries do not have the necessary capacity, hydrogen becomes crucial.
Quebec is aiming for carbon neutrality in 2050, but “we must be realistic, we will not be able to electrify everything,” argued Minister Pierre Fitzgibbon.
“When we talk about heavy trucks that travel long distances, green hydrogen offers a zero-carbon solution,” explained the general director of TES Canada, Éric Gauthier, at a press conference.
“Similarly, certain industrial processes cannot rely on electrification […]. Green hydrogen and its derivative products such as renewable natural gas are a tangible solution for decarbonization. »
Customers in the trucking industry have already expressed interest, Mr. Gauthier said.
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 GNR requires CO2 and therefore recovers GHGs.
The main shareholder of TES Canada is the company Tree Energy Solutions.
The project will be financed by shareholder capital, bank loans as well as government tax credits, detailed Mr. Gauthier.
On agricultural land?
The Union of Agricultural Producers (UPA) has expressed its concerns regarding the areas of possible wind and solar farms which could eat up arable land.
“The organization is concerned by the installation of more than a hundred wind turbines in around ten municipalities in the MRC des Chenaux and Mékinac,” we said in a press release. “In the context, the UPA Mauricie fears that these new infrastructures will eliminate cultivable areas. »
The social acceptability of wind and solar farms will be an issue in the BAPE consultations and several municipal officials were also on hand for the announcement.
“Everyone says: “not in my backyard,” conceded France Chrétien Desmarais. We understand, but after a while, we all have a social responsibility to make things happen. »
“We’ll see where it lands, but we have different possible scenarios,” she concluded.