The recent agreement between the B.C. government and the Japanese Organization for Metals and Energy Security highlights the province’s potential to export low-carbon energy sources, particularly hydrogen.
This development comes in conjunction with the collaboration between the McLeod Lake Indian Band and Mitsubishi Power to establish a $5 billion hydrogen plant in the Kerry Lake East reserve, aimed at producing sustainable clean energy for international buyers striving to achieve net-zero emissions.
With Japan, South Korea, and Taiwan identified as key potential buyers due to their large populations and the need to replace coal with greener alternatives, the demand for B.C.’s hydrogen products could be significant. Matthew Klippenstein, executive director of Hydrogen BC, emphasizes that countries in East Asia are eager to purchase clean ammonia to offset their emissions and are actively seeking such imports.
While these Asian nations are also exploring nuclear power projects to generate electricity, Klippenstein highlights the time-consuming nature of such endeavors, making it crucial to find an immediate, emission-free fuel source. The success of the McLeod Lake plant is expected to depend on long-term agreements with buyers like Mitsubishi, lasting up to 20 years.
The development of a hydrogen industry presents an opportunity for B.C.’s Interior region to revitalize its economy and create jobs. By leveraging the province’s natural resources, the aim is to export clean energy, foster economic growth, and establish community benefits agreements with affected communities.
Hydrogen, being the lightest element, cannot be easily shipped as a gas. Instead, it is converted into liquid ammonia through a chemical reaction involving nitrogen from the atmosphere and hydrogen from natural gas. Ammonia, which is cheaper to produce on a large scale, has been transported in significant quantities via rail and truck for many years in other parts of Canada, primarily for agricultural fertilizer production.
However, the transportation of liquid ammonia poses challenges. It is toxic, corrosive, and requires storage and transport under high pressure, raising the risk of explosion in case of tank rupture. The rail route from the McLeod Lake project would pass through multiple First Nation territories and municipalities, necessitating detailed negotiations with all stakeholders before construction.
Prince Rupert is preparing for ammonia transport by expanding its port infrastructure to accommodate future shipments. The construction of Canada’s first purpose-built terminal for handling liquid ammonia and loading it onto tankers is underway, with completion expected in 2027. This project, supported by federal funding, is known as the Berth to Beyond Carbon initiative.
Large-scale hydrogen production discussions are also taking place in Alberta and Atlantic Canada. In these regions, the focus is on utilizing offshore wind power to generate electricity, which would then be used to produce ammonia for export to European markets.
The potential of B.C.’s hydrogen industry to create economic growth, reduce emissions, and establish international trade relationships is significant. However, overcoming the challenges related to transportation, safety, and stakeholder engagement will be critical to realizing the full potential of this clean energy opportunity.
