The Quebec Hydrogen Valley: A distinctive approach to decarbonization

Hydrogen is a topic that sparks diverse reactions in Quebec. It has its champions and its critics. Beyond the debates, however, a reality stands out: grey hydrogen[1] is already widely used in numerous industrial sectors, from petrochemicals to ammonia production and electronic equipment manufacturing. While grey hydrogen has played a crucial role in industrial development, its production generates significant carbon emissions. In the context of the energy transition, it is desirable to gradually replace it with its low-carbon counterparts – and in Quebec it is mostly green hydrogen that is usually envisioned. Moreover, certain sectors that are challenging to fully electrify, such as steel production, cement plants, and heavy transportation (maritime, air, rail, and long-distance trucking), will require alternative solutions for their decarbonization. While the exact scale of the market remains to be determined, it is clear that a demand for green hydrogen will exist for the complete decarbonization of Quebec, and this market is far from saturated.

Mutualized infrastructure: reimagining our industrial parks and ports

Instead of opposition, let's consider how to optimize our future industrial parks and ports, our "hydrogen valleys," to make them models of energy efficiency on a global scale. The key lies in collaboration between different industries within each valley. Envision ecosystems where low-carbon hydrogen is just one element in a complex network of inputs and outputs.

In these parks, we would find production units for methanol, ammonia, ethanol, synthetic natural gas, and advanced decarbonized aviation fuels (e-SAF). These products would not only be manufactured on-site but also transported to and from the parks, creating a constant flow of raw materials and finished products.

Renewable electricity would play a central role in these valleys. Solar parks installed on the roofs of factories and large buildings (including some over 5 MW), as well as canopies over vast parking lots, would provide part of the necessary energy. This local production would be complemented by wind energy and the Hydro-Québec grid. Battery and thermal storage systems would manage production and demand fluctuations. Energy conservation and demand response would become common practices to facilitate grid connections and progressively transform these industrial parks into autonomous and resilient microgrids.

An innovative industrial symbiosis through mutualized infrastructure

In these Quebec hydrogen valleys, collaboration between industrial neighbors would be the norm. A hydrogen producer could supply its production to a neighboring methanol or ammonia plant, while a urea production facility (a fertilizer) could use CO2 captured from a nearby cement plant for its process. Thermal wastes, underutilized today, would become a valuable resource. The residual heat from a hydrogen production plant could, for example, be used to heat a synthetic fuel production facility or to power a local district heating network.

This symbiotic approach would require robust, modern, auditable, and cybersecure data systems. Production arbitrage and optimization would become continuous processes, adapting in real-time to fluctuations in energy prices, product demand, and resource availability. The integration of energy storage, whether in the form of batteries, hydrogen, or thermal storage, would offer additional flexibility, allowing for smoothing of production and electricity demand peaks, and optimizing resource utilization.

The Digital Marketplace Platform: heart of the ecosystem

To realize this vision, each hydrogen valley will need a modern data platform capable of managing a multitude of products, well beyond hydrogen alone. This platform must be accessible to multiple users transacting with each other, integrating with meters and sensors for optimal management of material and energy flows. It must enable sound data governance, paving the way for AI applications and automation for demand forecasting, production optimization, and predictive maintenance. Cybersecurity will be a crucial attribute of these collaborative platforms, ensuring the protection of sensitive data and the resilience of the ecosystem against digital threats.

The platform must be scalable, starting as a "minimum viable product" to evolve into a robust and complete solution. It must be capable of managing complex transactions between different industrial actors while integrating with external logistics systems for product transport to and from the park. This digital infrastructure will be essential to fully realize the digital transition of these hydrogen valleys, enabling efficient use of energy and material resources, and facilitating the emergence of new business models based on the circular economy and inter-company collaboration.

Quebec as a pioneer of green innovation

Rather than focusing solely on green hydrogen production, let's consider the circularity of the economy, energy efficiency, and the productivity of our industrial parks and ports where hydrogen production plants will be located. Let's intelligently integrate them into our transport and logistics networks: rail, maritime, road, and air.

These hydrogen valleys could become innovation hubs where new decarbonization technologies are tested and perfected. For example, carbon capture and utilization systems could be integrated into industrial processes that are difficult or impossible to decarbonize otherwise, transforming CO2 into raw material for the production of synthetic fuels or construction materials like prefabricated concrete.

Optimizing material and energy flows within these industrial ecosystems could also pave the way for new economic opportunities. The valorization of by-products and thermal waste could give rise to new industrial sectors, creating jobs and stimulating local innovation.

A distinctive Quebec model

By building distinctive hydrogen valleys, we will prepare Quebec and its manufacturing, transport, and logistics industries for the energy transition. These innovative industrial ecosystems will make us proud and position our province as a global leader in smart and integrated decarbonization.

The Quebec hydrogen valley must not be a simple production zone, but a model of industrial integration, energy efficiency, and technological innovation. This is how we will create a truly distinctive approach, adapted to our needs and decarbonization ambitions.

To succeed in this transformation, it is crucial to have orchestrating champions in each valley. These organizations will have the mission of inducing collaboration and circularity of exchanges, ensuring that each actor finds its place and contributes to the global ecosystem.

Promising examples are already emerging across the province. The Bécancour industrial park, the Varennes industrial-port zone, the Shawinigan innovation hub, as well as the ports of Montreal, Quebec City, and Trois-Rivières, are all potential sites for the development of these innovative hydrogen valleys.

As leaders in this field, we are convinced that this holistic and collaborative vision is the key to maximizing the benefits of low-carbon hydrogen while minimizing its environmental footprint, namely its high electricity consumption. Together, let's build hydrogen valleys that will make Quebec proud and inspire the world in its quest for decarbonization.

These integrated and intelligent industrial ecosystems will not only be drivers of our energy transition but also catalysts for innovation, economic growth, and sustainable development for generations to come. By focusing on the circular economy and cross-sector collaboration, Quebec has the opportunity to create a unique and high-performing model, worthy of its ambition and ingenuity.