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Hydrogen project designed to reduce natural gas consumption at Canfor pulp mill

Premier David Eby in Prince George.

A proposed hydrogen project from Chilliwack-based Teralta Hydrogen Solutions is set to get off the ground in Prince George.

“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 in Prince George Tuesday. “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.”

Teralta is planning a clean hydrogen system that will reduce natural gas use at Canfor’s pulp mill by 25 per cent. 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.

“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.”

“The City of Prince George is excited by the potential of this project,” said Mayor Simon Yu. “We continue to support sustainable energy transition while diversifying our local economy. What Teralta is doing is both impressive and innovative. Teralta is leading the way for lowering carbon emissions and investing in our city. We are strong supporters of this project and look forward to seeing it progress.”

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.

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% through a clean economy that works for everyone.

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