Province investing in proposed world-leading clean fuels plant in Merritt

Oct. 14, 2021

SQUAMISH – The Province is contributing $2 million from the Innovative Clean Energy (ICE) Fund to support the engineering and design of a first-of-its-kind plant in Merritt to capture carbon dioxide and convert it to clean fuels, creating new jobs and economic opportunities in B.C.’s cleantech sector.

“The Merritt Electro Fuels Project advances made-in-B.C. technology to capture carbon dioxide directly from the atmosphere and convert it into clean fuels,” said Bruce Ralston, Minister of Energy, Mines and Low-Carbon Innovation. “This innovative, world-leading project will support our economy’s shift away from fossil fuels while creating new jobs and opportunities for British Columbians.”

Squamish-based Huron Clean Energy proposes to finance, design, build and operate a first-of-a-kind commercial plant, which will capture carbon dioxide from the atmosphere and convert it into low-carbon synthetic fuels that can be used to replace standard diesel, marine and aviation fuels, through a process called Air-2-Fuels. The project will use BC Hydro’s clean and renewable hydroelectricity, and integrate green hydrogen production. This aligns with the B.C. Hydrogen Strategy, a blueprint for how renewable and low-carbon hydrogen will support B.C.’s climate goals and create new jobs in B.C.’s growing clean-tech sector.

Huron Clean Energy’s Merritt Electro Fuels Project will help meet the CleanBC goal of developing 650 million litres of new renewable fuel production capacity in B.C. An estimated 620 direct jobs will be created during the design and development phases of the project, with another 4,780 direct jobs during construction and 340 long-term jobs during the plant’s operation.

Huron has an equity partnership and land-lease arrangement with the Upper Nicola Band, which will receive a substantial part of the equity interest in the project as consideration for the land lease and other services. Huron has entered into a partnership with Oxy Low Carbon Ventures and also has an exclusive licensing arrangement for Canada with Carbon Engineering, a B.C.-based company leading the world in “negative emissions technology” that removes carbon dioxide directly from the atmosphere through direct air capture.

“By working together in partnership with the Upper Nicola First Nation, we are funding new, innovative technology to advance reconciliation and build a low-carbon future for B.C.,” said George Heyman, Minister of Environment and Climate Change Strategy. “Through CleanBC, this project upon completion will significantly reduce emissions while creating long-term, clean jobs for people in the Nicola Valley.”

The Merritt Electro Fuels Project is expected to prove the technical and business case for direct air capture and fuel synthesis, which could lead to the development of other commercial plants across Canada and other jurisdictions.

CleanBC is a pathway to a more prosperous, balanced and sustainable future. It supports government’s commitment to climate action to meet B.C.’s emission targets and build a cleaner, stronger economy for everyone.

Quick Facts:

• The Merritt plant will produce 103 million litres of low-carbon fuel per year requiring the annual input of 250,000 tonnes of captured carbon, 315 megawatts of electricity and 35,200 tonnes of hydrogen for the fuel synthesis process.
• In January 2021, government and BC Hydro announced a new, discounted clean-industry and innovation electricity rate for businesses involved in hydrogen production, synthetic fuels, carbon capture and storage, and large data centres.
• BC Hydro’s recently announced five-year electrification plan includes more than $50 million to attract new industries to B.C., focusing on companies that want to use B.C.’s clean electricity to produce low-carbon products.
• The ICE Fund was established in 2007 and was designed to support government’s energy and environmental priorities and advance British Columbia’s clean-energy sector.

Learn More:

For more information on CleanBC, visit: http://cleanbc.gov.bc.ca

A backgrounder follows.

Contact:

Ministry of Energy, Mines and Low Carbon Innovation
Media Relations
250 952-0622

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BACKGROUNDER

What people are saying

Michael Hutchison, chief executive officer, Huron Clean Energy –

“Our vision at Huron Clean Energy is to inspire a global shift toward preserving the planet, and we hope to realize this through the deployment of Carbon Engineering’s game-changing technology across Canada. This will be pure Canadian innovation. In co-operation with First Nations partners and Carbon Engineering, we will leverage our collective expertise to deliver facilities that will bring significant emissions reductions and environmental benefits. They will also lead to the development of new Canadian industries and thousands of Canadian jobs.”

Steve Oldham, chief executive officer, Carbon Engineering –

“Carbon Engineering’s climate solutions were developed here at home in Canada, with B.C. providing the ideal location for our company to innovate and grow. I couldn’t think of a more fitting location for the proposed development of our first commercial air to fuels plant. Our Canadian-made solutions have the potential to be key tools in the efforts to achieve the Province’s CleanBC and Canada’s net zero goals, and we’re grateful for the B.C. government’s continued support and commitment to the low-carbon transition.”

Harvey McLeod, Chief, Upper Nicola Band –

“Upper Nicola is excited to partner on this innovative development, and we are honoured to play a role in implementing new technology to lower emissions and tackle climate change. Through the Upper Nicola Holdings Limited Partnership, we have been quietly advancing other clean energy development on our reserve lands and this project aligns perfectly with our community and economic priorities.”

Chris O’Riley, president and CEO, BC Hydro –

“BC Hydro is ready to provide clean power to new and innovative industries that advance the Province’s climate goals set out in CleanBC while also advancing economic development. Our recently announced electrification plan outlines new incentives for clean industry, including hydrogen production, carbon capture and synthetic fuel production.”

Terry Teegee, Regional Chief, British Columbia Assembly of First Nations –

“This is an exciting opportunity to showcase how industry, Crown and First Nations governments can work toward innovation in the clean energy sector. I applaud the Upper Nicola Indian Band membership and leadership for their vision to address global climate change. First Nations have the lands, knowledge and solutions to attract global investment in leading edge, low-carbon technologies.”

Contact:

Ministry of Energy, Mines and Low Carbon Innovation
Media Relations
250 952-0622

Connect with the Province of B.C. at: news.gov.bc.ca/connect

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