Prince Rupert’s Legacy Inc. has leased 79 acres of Watson Island to Hy2gen Canada to analyze the feasibility of a hydrogen-based energy export project for Prince Rupert.
The city wholly owns Legacy, the landholder of Watson Island.
No details are currently available for what kind of project Hy2gen Canada might be considering, but the company's website describes several kinds of facilities it is interested in developing in Canada.
It describes its business purpose as developing, owning and operating "facilities that produce renewable hydrogen and hydrogen-based feedstock such as bio-methanol and bio-methane, bio-diesel, sustainable aviation fuel and renewable ammonia."
The city and Legacy are happy to have secured a lease for the time being.
“Although it is early days, we are excited about the many different potential benefits this project would have for our community,” said Robert Buchan, director of Legacy.
Mayor Herb Pond is excited about the potential environmental benefits and revenue-generating potential of a project.
“Green energy export projects will support B.C.’s economy and climate goals, while giving Prince Rupert sustainable revenues for the foreseeable future,” Pond said in an October news release.
The lease grants Hy2gen exclusivity and protection to conduct feasibility work before fully investing in the project, but it will not lead to the company owning the land.
Buchan said the lease revenues collected from Hy2gen will be paid to the city as dividend payments to offset large capital expenditures, which has historically helped support the renewal of Rupert’s dam and other significant projects.
In addition, should the project proceed, the city will receive additional property taxes to support operational expenses.
Buchan also anticipates this project attracting permanent, high-paying, direct and indirect positions. During its development, it will also draw temporary construction and service (engineering and environmental surveying) jobs.
Buchan estimates materializing a project like this from ideation to operation can take up to six years, presuming factor inputs such as water and power are available. Moving ahead, Hy2gen will require additional consultation with the community.
“The attributes of the city and its location with the support of the province of British Columbia figure prominently in our ability to develop a successful green energy export project focused on the Asian market,” said Pietro Di Zanno, Hy2gen Canada managing director.
Hy2gen is a global company that founded its Canadian, Montreal-based subsidiary in 2018. It operates a hydrogen facility in Germany and has several other projects in different stages of development in France, Nordic countries, the United States, and Canada.
Fossil fuels release greenhouse gases into the atmosphere when combusted. The Energy Council of Canada states that hydrogen is a clean-burning fuel that does not produce carbon emissions. It has a small to negligible greenhouse gas footprint. The Energy Council also notes Canada has a distinct advantage as a hydrogen producer due to its significant low-cost hydrocarbon resources and abundant clean electricity supply from sources such as hydroelectricity, nuclear, wind, and solar.