The partnership will use the strengths of both companies to produce and deploy 100 percent carbon-free green hydrogen in the Greater Montréal area as well as expansion to fast-growing international markets.
QUÉBEC CITY, Nov. 20, 2019 /CNW/ - Greenfield Global Inc., Canada's largest ethanol producer, and Hy2gen Canada, the first mover for commercial production and distribution of green hydrogen, announced today their intention to create a joint venture that will develop and operate a facility in Varennes (Québec) for industrial-scale production of green hydrogen and other zero-carbon energy products. The companies are completing conditions and terms with Greenfield Global and H2yGen each owning 50 percent, and its governance will be composed of representatives from both companies.
The joint venture will build a facility in Varennes, Québec, adjacent to Greenfield's existing biorefinery. The new facility will use the latest electrolysis technologies powered by hydroelectricity. The final products of the joint venture (green hydrogen, biomethane, and biomethanol) will reach the standard of zero carbon footprint and zero greenhouse gas (GHG) by using the green carbon dioxide from Greenfield's biorefinery. The joint venture facility will be built at 29 MW and expanded to meet demand with a possible scale-up to 80 MW in 2024.
Green hydrogen can be used in industrial, transportation, and mobility sectors, as well as energy property solutions. The new Varennes facility will help deploy clean, sustainable hydrogen in Montréal, and position Québec to be a world leader in green hydrogen production.
"Greenfield Global and Hy2gen Canada coming together is driven by our shared values and mission to reduce the impacts of fossil fuels by providing the greenest, most sustainable energy products for our customers, communities, and ultimately, the health of the planet," said Greenfield President and CEO, Howard Field.
"The demand for green hydrogen is increasing vertiginously, however, the commercial market is still at an embryonic stage. Our green hydrogen and hydrogen-based production at competitive price and our networks will allow us to reach across different sector, including the hard-to-abate ones. With low switching costs, the clients will realize that it is very possible to reduce the impacts environmental crisis by using our products. Our team has proven experience of developing, building and operating plants and our vision has been supported by market leaders in the global commodities industry" said Cyril Dufau-Sansot, CEO, Hy2gen.
"Québec is an ideal location to establish carbon-free hydrogen production given its abundant hydroelectricity and the strong government commitment to reducing greenhouse gases. Greenfield operates the first and only ethanol plant built in Québec and produces the lowest carbon intensity ethanol in Canada. Our vision, from the onset, is to expand our operations and expertise to help develop a hydrogen hub in the Greater Montréal area that is capable of expansion into fast-growing markets in North America, Europe, and Asia," said Jean Roberge, EVP and Managing Director of Renewable Energy, Greenfield Global.
Montréal International, Greater Montréal's economic promotion agency, has been working to attract this new major player in the region. "The hydrogen energy industry is gaining interest all over the world. Using the driving force of water to produce renewable energy, we have developed a solid reputation and stand apart from other North American regions. The use of hydroelectricity, with its stable rates, low carbon emissions and no pollution rights to trade, has played a key role in the decision of Greenfield Global and Hy2Gen Canada to invest in the region," said Stéphane Paquet, Vice President, Foreign Investments and International Organizations, Montréal International.
About Greenfield Global Inc.
Greenfield Global provides high-value, mission-critical raw materials, ingredients and additives that are vital to businesses, improve people's lives, and preserve the health of the planet. Greenfield is the largest ethanol producer in Canada and owns and operates four ethanol distilleries, three specialty chemical manufacturing and packaging plants, and three next-generation biofuel and renewable energy R&D centers in Canada and the United States. Founded in 1989, Greenfield continually develops more efficient and sustainable technologies and products while shrinking its own carbon footprint. From start-ups to the largest brands in the world, customers trust Greenfield's extensive portfolio of premium products, regulatory expertise, and industry-leading service. Under its Pharmco and Commercial Alcohols brands, Greenfield delivers hundreds of products to thousands of Life Science, Food, Flavor, Fragrance, and Beverage customers in more than 50 countries worldwide. To learn more, visit www.greenfield.com
About Hy2Gen Canada Inc.
The company was founded in 2018 in Montréal (Canada) and is 100% owned by Hy2gen AG, Germany. Its business purpose is developing and operating electrolyzer facilities (>650 Mega Watt) for the production of green hydrogen and hydrogen-based feedstock such as bio-methanol and bio-methane. Green hydrogen produced by Hy2gen AG by means of Alkaline electrolysis or polymer electrolyte membrane (PEM). Québec is an ideal location for establishing the first Hy2gen's carbon free hydrogen productions in North America due to the facts that the central and local governments strongly committed to the reduction of greenhouse gases by supporting hydrogen business, carbon free mobility and carbon reduction in the industrial sector. Additionally, Québec offers 100% green energy resulting from hydro power at the required level.
To learn more, visit www.hy2gen.ca
SOURCE Greenfield Global