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Teralta, Chemtrade, Canfor to invest in clean-economy project

A proposed hydrogen project from B.C.-based Teralta Hydrogen Solutions is set to reduce natural gas use at Canfor’s pulp mill by 25 per cent while creating sustainable jobs and driving down emissions, helping solidify Prince George as a hub for hydrogen investment in B.C.

The system collects byproduct hydrogen from Chemtrade Logistics’ sodium chlorate production facility, purifying and compressing it for use in Canfor’s adjacent pulp mill. This new project is being advanced with a regulatory change the province recently made that allows gas utilities to acquire hydrogen to replace fossil fuels.

“Our work is creating jobs and delivering cleaner air across the province. B.C.’s hydrogen strategy has paved the way for this project to move forward, providing significant benefits to workers, the region and the whole province,” said Premier David Eby.

“Teralta and their partners, Chemtrade and Canfor Pulp, are leaders in fighting climate change through creative solutions that lower carbon emissions, create good-paying jobs for people, and build healthier communities,” Eby added.

“Canfor Pulp is continuously looking for new ways to apply sustainability innovation for low-carbon energy solutions. We’re excited to explore the opportunities with clean hydrogen, which could substantially reduce natural gas use and drive us toward a more economically and environmentally sound future,” said Kevin Edgson, president and CEO of Canfor Pulp.

“The project is complex, but due to the strong partnerships we have forged, our progress has been consistent,” said Simon Pickup, CEO, Teralta. “Today, the building for the hydrogen processing is in place and the infrastructure to capture and upgrade the hydrogen is in the works. While clean hydrogen is recognized as an important component in achieving a sustainable future, few projects have come to fruition. B.C has the potential to lead the world with its Hydrogen Strategy and the success of this project will be the groundwork for future initiatives here and abroad.”

Since the release of B.C.’s multi-year Hydrogen Strategy in 2021, the province has been taking action to advance the production, distribution and use of low-carbon hydrogen and create new economic opportunities across various sectors. That includes working with partners to create regional hydrogen hubs where production and demand are co-located to lower costs and maximize benefits for local economies. In 2023, the province provided $150,000 to the City of Prince George to help kick-start the development of a regional hydrogen hub in collaboration with industry, First Nations and the public.

“Using zero-emitting waste hydrogen to displace fossil fuel consumption is a common-sense solution to a long-term problem,” said Josie Osborne, Minister of Energy, Mines and Low Carbon Innovation. “Through CleanBC, our government is supporting companies like Teralta to move forward with projects that create good, sustainable jobs for local communities.”

B.C.’s new Clean Energy and Major Projects Office (CEMPO) is fully operational and supporting projects such as Teralta’s. Announced in March 2023 as part of the new energy-action framework to fast-track investment in clean energy and create good, sustainable jobs in the transition to a clean economy, CEMPO is providing dedicated support to clean-energy projects, including in the emerging hydrogen economy. There are approximately 50 proposed projects in the hydrogen sector in B.C., ranging from large-scale production facilities to hydrogen-fuelling stations and heavy-duty trucking pilots. These projects represent billions in potential investment.

FortisBC is exploring participation in this project as part of its work to understand how hydrogen might be delivered through the company’s natural gas system.

Creating an environment for businesses to transition to clean-energy solutions such as hydrogen is part of the CleanBC Roadmap to 2030, the province’s plan to create jobs and reduce emissions by 40 per cent through a clean economy that works for everyone.