The Carbon Recycling project which wants to transform non-recyclable residues into biofuels in Varennes is progressing well, but it could branch off towards other markets, such as hydrogen.
“We will be the largest producer of green hydrogen in Canada and perhaps even in North America,” explained Stéphane Demers, general director of this 1.3 billion investment project, during a visit to the site. .
“We are closely following the hydrogen market, which originally in the project was not necessarily a priority,” he said. But the entire hydrogen market is evolving rapidly. We look at TES [in Shawinigan] and Air Liquide. There is excitement in the market. »
For the moment, Recyclage Carbone believes that its hydrogen production, i.e. 40 tonnes per day, will only be used for the process of transforming residue into methanol. But if the biorefinery must be shut down and if there is hydrogen molecule available, it can be valued on the market, said the general director of the future factory.
“That’s something we’re going to look at too. There is a local market that we are evaluating,” he added, mentioning the names of ArcelorMittal and Énergir as potential clients.
Long before electricity became a rare commodity in Quebec, Recyclage Carbone obtained a supply of 90 megawatts from Hydro-Québec to power its electrolyser and produce hydrogen to transform waste into biofuels. Hydrogen production (40 tonnes per day currently) could be further increased if the company one day obtained an additional 20 megawatts from Hydro-Québec.
Between 800 and 900 million of the total investment of 1.3 billion have already been spent or committed, we learned during the visit. The factory’s waste supply must come half from forest biomass and the other half from what the sorting centers cannot recycle. Negotiations are underway for the acquisition of 200,000 tonnes per year of the raw material for which the company believes it will pay nothing. She even hopes to be paid to take care of these non-recyclable residues.
Likewise, the market for the final product, 125,000 liters per year of green methanol, is not yet final. Recyclage Carbone is first targeting the maritime market, where its product could replace heavy fuel oil as a fuel for ships.
But that too could change, according to Stéphane Demers.
“We have looked at many options in this matter. We have not yet reached any conclusions.”
Another uncertainty is the cost of green methanol on the market. It is expected to be at least double that of fossil-based methanol, according to Recyclage Carbone.
Since its launch, the Recyclage Carbone Varennes project has already been substantially modified and has received a lot of public support. Hydro-Québec was to build the electrolyzer and produce the hydrogen necessary to convert waste into synthetic gas and biofuel, before withdrawing from the project. Enerkem, which was a shareholder in the company, exited to become the supplier of the technology, which was tested for 11 years at a factory in Edmonton, Alberta. This plant, which ceased operations earlier this year, has swallowed up 1 billion over the years, Enerkem president Dominique Boies said on Wednesday.
Recyclage Carbone Varennes today belongs to four shareholders, namely the oil companies Shell (36%) and Suncor (27%), Investissement Québec (24%) and Proman (13%), producer of methanol and other gas-derived products. natural.
Investissement Québec is also involved in financing this 1.3 billion project, with a loan of 150 million. The Canada Infrastructure Bank (CIB), a federal Crown corporation, also granted a $277 million loan.
It is a risky investment, said BIC senior investment director Saad Rahali, due to the volatility of methanol prices. “But for us it was a no brainer because of the presence of private partners like Shell, Suncor and Proman,” he said.
Construction of the Varennes industrial complex began in 2021 and first production is expected at the end of 2025. By the end of summer, the 72 biorefinery modules manufactured in Asia will arrive by sea in Contrecœur and Bécancour to be assembled on the Varennes site.
