Quebec To Build Privately-Funded $2.9 Billion Green Hydrogen Plant

Canada's progress towards net-zero emissions is getting a boost from an agreement to construct Quebec's first large-scale green hydrogen plant. The $2.9 billion project is fully privately financed, leaving taxpayers off the hook.

TES Canada, a Montreal-based subsidiary of German renewable energy firm Tree Energy Solutions, will build its "Project Mauricie" facility in Shawinigan, around 100 miles north of Montreal, the company announced on Nov. 9.

The project is slated to be commissioned in 2028. TES Canada predicts that it will be capable of producing 70,000 tons of hydrogen fuel per year, exclusively designated for domestic consumption.

Financing for the project is entirely private: 60% comes from TES Canada, and 40% from a fund controlled by France Chretien-Desmarais, a Desmarais family member and daughter of former Prime Minister Jean Chrétien.

The initial construction process will add around 200 permanent jobs and 1,000 temporary jobs to the local economy, according to company estimates.

"This project in the Mauricie region will create hundreds of sustainable jobs while providing affordable, reliable and clean energy to the Québec power grid, as well as to the industry and transportation sectors," Jonathan Wilkinson, Minister of Energy and Natural Resources said Thursday in a statement accompanying TES Canada's press release. "Projects like this one help to fight climate change and create a prosperous future."

Green Hydrogen's Future

Green hydrogen is produced through electrolysis using electricity generated from renewable energy sources like solar and wind and geothermal energy.

For TES Canada's proposed facility in Quebec, "the majority of the project's energy needs will be met by its own 1 gigawatts wind and solar farm," according to a company statement.

"Blue" and "gray" hydrogen differ from green hydrogen. They are produced using electricity from non-renewable energy sources, typically natural gas, with varying degrees of carbon capture involved.

Hydrogen fuel is critical for decarbonizing energy-intensive sectors like fertilizers and steel, and can serve as a means of energy storage.

Canada's nationally determined contribution (NDC) for mitigating climate change is a 40%-45% reduction in 2005-level carbon emissions by the year 2030. On November 7, a government-sponsored audit determined that the country's actions to meet this goal have been insufficient, and the target will more than likely be missed.

The Canadian government hopes that developments like the construction of "Project Mauricie"—which TES Canada predicts will directly result in a 3% reduction of Quebec's annual greenhouse emissions—can supercharge the country's energy transition.

"By combining the reduction of CO2 emissions, the creation of quality jobs along with regional economic dynamism, this project illustrates the immense potential of green energy for our collective future," Steven Guilbeault, Minister of the Environment and Climate Change said on Thursday.

TES Canada's "Project Mauricie" will likely become Canada's second green hydrogen facility upon completion. A similar project in Nova Scotia aims to produce 70,000 tons per year by 2025.