Documents suggest B.C.'s hydrogen plans under threat as uncertainty halts 'large-scale' projects

Documents released through a freedom of information request reveal that B.C.'s former energy minister was told last September that at least seven "large-scale hydrogen projects" were being cancelled or paused because of issues including electricity supply, high cost and transportation.

The end of one of those plans — Fortescue's Project Coyote — has since been made public, but the documents list six more projects that have been quietly put on ice, including a Prince George clean hydrogen project publicly launched by Premier David Eby last January.

All told, the documents outline serious threats to B.C.'s dreams of becoming a leading hydrogen producer — including lack of domestic demand, an "unprecedented" need for electricity and uncertainty around moving volatile chemicals by rail through First Nations land.

"Over the past six months, at least seven large-scale hydrogen production projects have paused development or been cancelled due to a range of issues," then energy minister Josie Osborne was told in a briefing note in September 2024.

"The government of B.C. will need stronger policy action to support hydrogen production and use to successfully establish a hydrogen economy in B.C."

The briefing note was part of a package released earlier this month in response to a freedom of information (FOI) request from a business.

Hydrogen's potential as an environmentally-friendly alternative to fossil fuels has generated global excitement.

It can be produced from domestic resources including natural gas, biomass, and wind or solar power. And when used as fuel to power anything from cars to ships to buildings, hydrogen produces zero to negligible amounts of greenhouse gases — although it has been critiqued for the large amount of energy it takes to create. 

The B.C. government has embraced the role of hydrogen in hopes of achieving net-zero emissions by 2050, developing a strategy "to accelerate the production and use of renewable and low-carbon hydrogen and be a world leader in the growing hydrogen economy."

In pursuit of that goal, Eby travelled to Prince George last January to announce a project led by Chilliwack-based Teralta Hydrogen Solutions to power a Canfor mill with hydrogen produced as a byproduct from a nearby Chemtrade sodium chlorate production facility.

"Our work is creating jobs and delivering cleaner air across the province. B.C.'s hydrogen strategy has paved the way for this project to move forward," Eby said in a news release issued at the time.

"Teralta and their partners, Chemtrade and Canfor Pulp, are leaders in fighting climate change through creative solutions that lower carbon emissions, create good-paying jobs for people, and build healthier communities."

But according to the FOI documents, that project has since been paused. 

"Chemtrade ceased sodium chlorate production due to local mill closures, which means no byproduct hydrogen is being produced on site," the documents say.