Another green energy advocate is hanging a billion -dollar project on the North Shore. Teal Chemicals & Energy hopes the solution designed “by Quebecers and for Quebecers” will allow it to have access to enough hydroelectricity – which is far from certain – to realize its ambitions and find the necessary money .
Posted at 7:00 am
The Magog-based company, which will present the outline of its project on Tuesday, May 24, wants to build a green hydrogen and ammonia production complex in Sept-les, in the industrial-port area.
“It all depends on getting a block of energy from the Government of Quebec,” Teal president and CEO Jonathan Martel acknowledged in an interview with The Press.
To start the project, approximately 550 MW of energy is needed. But since the era of surpluses is coming to an end, Quebec has already warned that we will not accept all projects over 50 MW. Teal is putting its cards on the table as the presentation of the Legault government’s approach to green hydrogen approaches.
Mr. believes. Martel that the project has a mark on all the boxes: it is led by a Quebec company and the production will be sold as a priority to customers established in the province to support their decarbonization efforts.
Very energy intensive, green hydrogen production is of particular interest to key industry sectors wishing to reduce their greenhouse gas emissions. However, it is difficult to carry it over very long distances. This is where ammonia enters.
“Right now, hydrogen is the miracle molecule on which everyone puts a lot of hope,” said the Teal leader. But from a technical standpoint, everything is not ready yet. It is possible that in the next two to five years, for some industrial applications, ammonia will win. We want to let our customers choose. »
Used in sectors such as agriculture, ammonia has several vocations. Teal aims to market its green ammonia as fuel, specifically in the maritime industry. The molecule can also store hydrogen. Green ammonia is extracted through electrolyzers, which are powered for example by hydroelectricity.
But Teal isn’t the only one promoting this type of project on the North Shore. German company Hy2gen is hoping for a similar project in Baie-Comeau, in the industrial-port area. However, Mr. Martel believes the Sept-Îles site offers more advantages, which excludes his company.
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Teal already has a 15-year agreement with American company Trammo, which will buy its production. This distributor will have the duty to sell and deliver energy to customers. This reduces business risk for Teal, Martel believes. So far, there is no guarantee that there will be demand if the project is completed. Production costs are high, reflected in the sale price. Are we ready to pay a premium for green ammonia and hydrogen? Mr. Martel believes mindsets change.
“The crisis in Ukraine is affecting the energy chessboard,” he said. Prices are exploding. A ton of ammonia, which varies between $ 400 and $ 500 in Europe, reaches $ 1600. »
Lots of money to find
Mr. hopes. Martel to raise 30 million by the end of the year to finance the engineering and design work of the complex. This stage should last until 2024, if everything goes according to plan. Developers are aiming for 2026 for the start of production. The first phase is expected to produce 80,000 tonnes of hydrogen and 400,000 tonnes of ammonia per year.
When asked about the financial arrangements for the project, Teal’s boss was cautious, saying that local and foreign investors would be present if his company had access to the necessary energy. A request was submitted to Hydro-Québec in hopes of gaining access to the requested energy block.
Teal has been registered with the Quebec Lobbyists Registry since last November. It is also taking similar steps with the federal government. So far, the company said its discussions in Quebec revolve around access to hydroelectricity. He also wants to receive a medium-term financial boost.
- This was the year Teal was founded. Its co-founders are Jonathan Martel and Philippe Machuel.
SOURCE: Teal Chemicals & Energy