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B.C. paves the way for new clean-economy opportunities in Prince George

CANADA, January 16 - A proposed hydrogen project from Chilliwack-based Teralta Hydrogen Solutions is set to create sustainable jobs while driving down emissions and helping solidify Prince George as a hub for hydrogen investment in B.C.

“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.”

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

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% through a clean economy that works for everyone.

Quotes:

George Heyman, Minister of Environment and Climate Change Strategy –

"New ways to support private-sector innovation and investment in clean-energy solutions is critical to reducing emissions and building a secure future for people in British Columbia and our economy. Seeing Canfor work closely with a B.C. clean-energy company to reduce emissions is another encouraging step toward meeting our 2030 climate targets and beyond. It’s projects like this that are bringing us closer to making those important goals a reality.”

Roly Russell, Parliamentary Secretary for Rural Development –

“Exploring new strategies that encourage the private sector's role in clean-energy innovation and investment is key to cutting emissions and ensuring a sustainable future for British Columbians. Today marks a significant move toward achieving our 2030 climate objectives, while also setting the stage for other clean-energy projects that will further benefit the environment, the economy, and the people of British Columbia.”

Simon Yu, mayor of Prince George –

“The City of Prince George is excited by the potential of this project. 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.”

Scott Rook, president and CEO, Chemtrade Logistics –

“We are excited to be part of this project which will harness the hydrogen produced at our Prince George facility and use it to remove hundreds of thousands of tonnes of emissions from our atmosphere. As an organization, we are looking at ways we can reduce our footprint and partner to deliver critical materials to a market looking for green-energy alternatives and technology solutions.”

Doug Slater, vice-president of Indigenous relations and regulatory affairs, FortisBC –

“Increasing access to renewable and low-carbon gases is a keyway that we can help our customers lower their emissions while safely and reliably meeting their energy needs.  We applaud the Province’s leadership in laying the groundwork for hydrogen services as part of a clean-energy future and encourage further policy support to enable more projects like this one.”

Kevin Edgson, president and CEO, Canfor Pulp –

“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.”

Quick Facts:

  • Teralta Hydrogen Solutions specializes in the end-to-end development of clean-hydrogen facilities to transform fossil fuels and industrial waste into clean hydrogen.
  • In 2021, B.C. became the first province in Canada to release a comprehensive hydrogen strategy.
  • More than 50% of Canada’s hydrogen and fuel-cell companies are in B.C., and the province accounts for approximately 60% of research investment in hydrogen and fuel-cell development.
  • Approximately 70% of B.C.’s end-use energy demand is met through fossil fuels, such as gasoline, diesel and natural gas. 

Learn More:

For more Information about the CEMPO and the BC Hydrogen Strategy, visit:
https://www2.gov.bc.ca/gov/content/industry/electricity-alternative-energy/renewable-energy/clean-energy-and-major-projects-office

For more information about Teralta Hydrogen Solutions, visit: https://teralta.com/ 

To read Teralta's news release about the clean-hydrogen system in Prince George, visit:  
https://teralta.com/press-release/teralta-launches-clean-hydrogen-system-to-help-power-pulp-mill-in-prince-george/