We hear and read a lot about this these days, and I thought it was important to reframe the debate by providing some information.
Regarding the implementation of the project, we have very strict rules in Quebec. The entire TES project, including the wind farm, will be subject to review by the Office of Public Hearings on the Environment (BAPE). The installation of wind turbines in agricultural areas, for its part, is strictly regulated by the rules of the Commission for the Protection of Agricultural Land (CPTAQ).
The government may also require the creation of a dedicated fund in the event of the dismantling of wind turbines.
In addition, TES Canada is committed to providing financial compensation totaling $238 million over the next 20 years, which includes an annual fee of approximately $25,000 per wind turbine for their owners, $25,000 for adjacent neighbors and $25,000 for municipalities.
Now, here is some information about the project:
It alone will help reduce greenhouse gas (GHG) emissions by 800,000 tonnes, or 3% of Quebec’s overall target in 2030. The green hydrogen produced in Shawinigan will be used to decarbonize sectors of our economy that can hardly be electrified.
Two thirds of this production will be used to produce renewable synthetic natural gas (RNG). This production represents 20% of the government’s objective.
The other third of the hydrogen produced will be used to replace diesel in the long-distance heavy transport industry. This is a great example of an entrepreneurial project, and we are privileged to see it born here.
In addition to concretely participating in the necessary energy transition, TES Canada’s Mauricie Project represents investments of $4 billion in the heart of the Energy Transition Valley.
I would like to remind you that this amount does not include any funding from the Quebec government. The project will be eligible for federal government tax credits, as is the case for any other similar project.
The project will create 200 well-paid permanent jobs, and will generate major economic benefits for the region, in addition to contributing to the decarbonization of Quebec.
Some wonder why TES Canada chose to set up in Mauricie. Why not carry out this project in a more remote region, far from major centers, where the wind is better?
This is a legitimate question.
TES Canada decided to install its electrolyzer close to end users because transporting hydrogen in liquid form is simply not economical. It is therefore a strategic location near the main roads used by major road carriers. It is also a place where the natural gas network is accessible.
This project requires 500 MW of energy power, the equivalent of the company’s initial request to Hydro-Québec. It is impossible in the current context to rely solely on Hydro-Québec, whose room for maneuver is currently limited. We therefore authorized the allocation of only 150 MW by Hydro-Québec last fall. This is why the company must fill the missing 350 MW using self-production from wind and solar energy. Which is already permitted by current law.
Regarding wind turbines:
It must be said, Hydro-Québec will not succeed in overcoming the challenges of the energy transition alone.
We will need to develop solutions that complement Hydro-Québec’s efforts to deploy the necessary resources to achieve Quebec’s decarbonization and economic development objectives. And time is running out. Additionally, the cost of electricity produced by wind turbines is much lower than that of electricity produced by new hydroelectric plants. Private companies are part of the solution, and the TES Canada project is a good example.
Regarding the profitability of the project:
I know that several academics have spoken out about the profitability of the project. But it is not their role nor that of the government to comment on the profitability of a private project. Instead, let us evaluate the TES Canada project on the credibility of its leaders, its partners, as well as its essential mission for the decarbonization of Quebec. This is why the government is in favor of the project.
The credibility of the TES Canada team is reassuring, certainly more than the opinion of people who have never worked in a company. The company is the one most qualified to demonstrate the profitability of the project; these leaders will invest 4 billion dollars!
In conclusion, I will monitor the situation closely to ensure that everything is done according to the rules of the art. But let’s not lose sight of the race against time in which we are engaged on environmental and energy levels, which is why we must welcome these important projects with all the necessary openness.
