TES Canada H2, a subsidiary of Belgian hydrogen start-up Tree Energy Solutions (TES), has announced a plan to build a CAD4bn (USD2.9bn) green hydrogen plant in Quebec, Canada, as reported by Reuters on November 11. This project, slated to produce 70,000 tons of green hydrogen annually by 2028, stands among the largest hydrogen production facilities committed in Canada to date. Approximately one-third of the production will be allocated for the decarbonization of long-haul transportation, with the remaining portion earmarked for the production of renewable natural gas—a nearly emissions-free fuel created by combining captured carbon and green hydrogen.

TES Chief Executive Marco Alverà emphasized Canada’s attractiveness for hydrogen projects, citing the nation’s abundant hydropower resources, surging energy demand, and available tax credits. Last year, Canada introduced a CAD17.7bn (USD12.8bn) tax credit exclusively for hydrogen manufacturing projects. This initiative aims to bolster Canada’s ambitious objective of sourcing 30% of its energy from clean hydrogen, a significant increase from its near-zero levels today. It also positions Canada to compete with the United States’ Inflation Reduction Act (IRA), which provides uncapped tax credits for hydrogen programs. Motivated by the IRA, TES and TotalEnergies [TTE:FP] announced a USD2bn synthetic natural gas plant in the U.S. in May. The collaboration involves using wind and solar power to produce green hydrogen, which will then be combined with carbon dioxide to generate synthetic methane—addressing the decarbonization needs of customers challenging to electrify.

Sources:

https://www.reuters.com/sustainability/climate-energy/canada-firm-build-c4-bln-green-hydrogen-project-quebec-source-2023-11-09/

https://www.ft.com/content/2bf0fa89-b105-4a1c-9a98-bc4a71f95b6c

https://www.ft.com/content/2a61de09-7a2f-415b-8050-e402c58087b7