N.B.'s nuclear power could complicate Belledune's hydrogen sales

Nuclear energy's role in powering a proposed "green hydrogen" plant in northern New Brunswick could make sales from the facility to Germany more difficult.

Port of Belledune CEO Denis Caron acknowledged to reporters Wednesday that N.B. Power's use of nuclear energy could be a deal-breaker for German buyers of hydrogen.

"It could be, yes," he said.

The port signed an agreement this week with the German port of Wilhelmshaven that Caron hopes will pave the way for sales of hydrogen to Europe.

Germany is looking for new sources of energy in light of reduced supplies of natural gas from Russia, and the country wants that energy to come from renewable sources to comply with its aggressive climate targets.

The proposed hydrogen plant in Belledune would produce what Caron calls "green" hydrogen, powered, at least initially, by electricity from the provincial grid – including from N.B. Power's Point Lepreau nuclear station.

"From a German perspective, this is really unacceptable," says Constantin Zerger of Environment Action Germany.

"It would not be justifiable to shut down nuclear power stations here in Germany, and then buy hydrogen coming partly from nuclear power elsewhere," he says.

"So that's something that definitely needs to change in that project. The operators need to switch to renewables completely."

Hydrogen energy produced through electrolysis – the splitting of water molecules – leaves only oxygen as a byproduct, which means no greenhouse gases contributing to climate change.

But to be labelled "green" the electrolysis process itself has to be powered solely through renewable or non-emitting sources.

Cross River Infrastructure Partners, the port's partner in the proposed plant, says it would turn off its facility at peak demand times when N.B. Power is running its fossil-fuel plants, so that no greenhouse-gas emitting electricity was used.

But nuclear energy would still be in the mix.

Point Lepreau's nuclear generation makes up about 44 per cent of N.B. Power's non-emitting electricity, and it's not renewable like wind and solar power.

The proposed Belledune hydrogen plant would need 200 megawatts of power, a significant amount but within N.B. Power's ability to supply, Caron said.

Down the road he said the plant could "build out" more renewable generation, "more wind, probably, more solar."

In the shorter term, a certification system could be key to persuading the Germans that the power is coming from green sources, he said.

"There has to be a mechanism to certify that it is green energy to meet the international standards, so that's kind of the goal and that's what's being worked on."

Louise Comeau, the Conservation Council of New Brunswick's climate and energy director, says certification would allow N.B. Power to guarantee that at least 200 megawatts of power on the grid at any given time – the amount needed for the plant – comes from renewables.

Another option would be to give Belledune and Cross River the freedom to generate their own renewable electricity, she said.

Existing laws don't allow that in New Brunswick, but in Newfoundland and Labrador legislation has been amended to permit it – allowing a proposed hydrogen plant there to incorporate its own huge wind farm into the design, with no reliance on the provincial grid.

Premier Blaine Higgs said Wednesday he's open to looking at those options, but he also said he expects a new version of nuclear energy, from small modular nuclear reactors, will be part of the province's generation mix in the future.

"We must look at a broad base of energy resources."

Zerger says it's not just environmentalists who would oppose hydrogen produced with nuclear energy.

He believes the German public and even the government would also resist because of issues surrounding nuclear waste and potential accidents.

"My guess would be that with the Green Party in power [in a coalition government], they would hopefully oppose such a project as well."

Germany has been phasing out its nuclear plants.

Higgs pointed out Wednesday that the current energy crisis had led the government to consider extending the operation of some of the plants.

But Zerger says that will be "only for a couple of months" over the coming winter.

While nuclear-generated hydrogen might meet with opposition in Germany, Caron says recent talks at the Dutch port of Rotterdam suggest they would be "much more accepting."

While Germany is the largest potential customer for Canadian hydrogen, other European countries are also looking for alternatives to Russian gas.