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A $21-million green hydrogen production facility is set to be built inside the Kruger Pulp Mill in Kamloops, B.C.
The goal of the project is decarbonizing and reducing the mill’s reliance on natural gas, said Irene Preto, the general manager of Kruger Kamloops Pulp.
The construction of the 10-megawatt facility, called the Kamloops Clean Energy Centre, is a collaborative effort between the Tk̓emlúps te Secwépemc Nation, Elemental Clean Fuels and Kruger Kamloops Pulp.
On Dec. 8, Sc.wén̓wen, the economic division of the nation, announced the novel project.
The project prompted questions over why a pulp mill is choosing to produce hydrogen, and how it will be done. Here’s what you need to know.
Why does a pulp mill want to produce hydrogen?
The Kruger Pulp Mill makes paper and pulp products using wood.
A part of its manufacturing process, the lime kiln, is particularly energy-intensive and requires a lot of heat — which is currently derived from burning natural gas.
“To be able to decarbonize the natural gas out of our lime kiln is a really big step forward towards our goal of becoming more renewable,” said Preto.

The mill plans to replace 16 per cent of the natural gas used in the lime kiln with hydrogen.
When hydrogen is burned, rather than creating carbon dioxide, it creates water and heat.
Why hydrogen?
When hydrogen atoms are isolated, they can store and transport a lot of energy, similar to other energy-rich products like natural gas.
Hydrogen atoms are reactive, meaning they usually like to be combined with other atoms to form molecules — unless a lot of energy is present.
How is hydrogen energy produced?
Production is done in two ways: either by separating hydrogen from a carbon-rich molecule like methane (CH4), or from water (H2O).
But when carbon-containing molecules like coal or methane are burned for hydrogen production, carbon dioxide is released as a byproduct, leading to greenhouse gas emissions.
Some facilities capture and store the released carbon dioxide to minimize greenhouse gas emissions.
Alternatively, a process called electrolysis — which will be used by Kruger — uses electricity to split water molecules into oxygen and hydrogen atoms.

Preto says the resulting oxygen atoms will be used to strengthen the pulp the mill produces.
When the electricity for electrolysis comes from a renewable source, like wind or hydroelectric dams, the product is called green hydrogen.
Green hydrogen has been labelled as one solution for Canada to meet its net zero goal by 2050. CBC’s Frances Willick finds out if green hydrogen is really better for the environment.
Where is the electricity for electrolysis coming from?
The electricity comes from the B.C. Hydro grid — but it is actually produced at the pulp mill from wood byproducts.
Wood byproducts are burned to create steam, which then turns a turbine and generates electricity.
The process is called biomass cogeneration, and the mill subsequently sells the resulting electricity to B.C. Hydro, part of which will be used for electrolysis.

Why replace natural gas?
Zachary Steele, the CEO of Elemental Green Fuels — the developer of the project — said in this case, replacing natural gas combustion with green hydrogen will reduce greenhouse gas emissions.
“We’re going to reduce the emissions by 7,000 tonnes of CO2 per year. That’s the equivalent of taking 1,200 to 1,500 vehicles off the road,” he said.
Steele said simply using electricity from B.C. Hydro to power the kiln is not feasible, because it would require so much power it would stress the grid.
Documents contained in an FOI request reveal that B.C.’s plan to be a leader in hydrogen technology has hit roadblocks. As Michelle Ghoussoub reports, a slew of major projects are on pause — or even cancelled.
When will it be built?
Kruger received funding for the project from Natural Resources Canada through an Indigenous clean energy fund.
“The Kamloops Clean Energy Centre reflects our commitment to sustainability, economic self-determination, and highlights our leadership in advancing innovative, local clean energy solutions,” said Kúkwpi7 (Chief) Rosanne Casimir of Tk̓emlúps te Secwépemc.

The project is still being designed, and is a ways off from being operational.
Steele said the final investment decision is expected sometime in 2026, with construction beginning after that.

