Charbone Hydrogen (TSXV:CH) inked a memorandum of opportunity (MOU) with the Corporation de Gestion Du Port De Baie-Comeau and the City of Baie-Comeau to take the opening steps leading to a green hydrogen project.
The green hydrogen project includes green hydrogen production and distribution systems with a capacity aim of 0.5 megawatts or greater somewhere in the industrial-port zone. Additionally, the city has a electrical distribution network and will be responsible for implementing a plant with capacity expansion potential.
“Charbone is determined to create the first regional ecosystems and to participate in the energy and economic transition of the regions. This agreement with the Port and the City of Baie-Comeau is yet another milestone, proving Charbone’s model of development and progressive deployment, and it is not the last,” said Dave B. Gagnon, CEO and chairman of Charbone.
Charbone is a Canadian green hydrogen company. Primarily, the company develops modular and scaleable hydrogen production facilities. It also acquires hydroelectric plants which it uses to produce green dihydrogen molecules from reliable and sustainable energy.
The Port of Baie-Comeau is located on the north shore of the St. Lawrence River in Quebec. It’s a deep-water, ice-free port and relies on major global players in the raw and processed material sector. The port provides a number of services for a number of different industries.
It provides logistics services for the mining industry in Northeastern Quebec, and connects to the national rail networking leading to all major domestic markets in the American midwest. Its goal as a port is to become an export hub for manufactured goods, natural resources, mining products, grains and green energy.
What is Green Hydrogen?
Renewable energy produces green hydrogen, which produces lower carbon emissions than grey hydrogen. Grey hydrogen is produced by steam reforming of natural gas. At present, green hydrogen produced by water electrolysis is less than 0.1 per cent of all hydrogen production.
The high cost is a major stumbling block. According to Grandview Research, the hydrogen market will grow, with expectations of production costs falling from $6 per kilogram in 2015 to $2 per kilogram by 2025.
The parties expect the agreement will focus on the development of a local ecosystem for the production of green hydrogen. The community will organize meetings with local businesses for their decarbonization needs.
The Port of Baie-Comeau intends to be among the country’s strategic hubs for hydrogen production. It intends creating an industrial cluster around this energy source to meet the energy needs of the north shore.
The city of Baie-Comeau is a strong believer in alternative energy options and the potential for this sector in Quebec.
