City remains hopeful green hydrogen project could become a reality

A 2-billion dollar green hydrogen plant that was proposed in Prince George is being put on pause by Fortescue.

Last month, the Australian-based company announced they will undergo a global restructuring, focusing on four projects in Australia, Brazil, the United States and, Norway.

Additional projects in Morocco, Oman, Egypt and Jordan are expected to follow.

Fortescue announced it would shed 4.5% of its global workforce and said it was unlikely to meet 2030 targets for green hydrogen production.

The cuts also come as the price of iron ore, the company’s main profit driver, is forecast to fall back below $100 a tonne.

Prince George Mayor Simon Yu believes the 1,000 mega-watt requirement is still a major hurdle the province is facing.

“The size of Project Coyote was quite ambitious and I believe at this time, the province due to other energy commitments we already have made – they are not 100% ready yet. This is my understanding of the situation.”

While the setback is disappointing, Yu is confident more companies will step up to the plate and invest in the northern capital.

“I am confident during the months and year ahead following BC Hydro’s call for power, we will assess what clean green energy we have and I am sure Fortescue as well as other companies will look at Prince George as the place to start a hydrogen plant.”

“With players like Fortescue and Mitsubishi showing interest in our region, I am sure there will be other activities coming forward.”

In September of 2023, Australian multi-billionaire Dr. Andrew Forrest, who is Fortescue’s Non-Executive Chairman and primary shareholder gave a presentation on what the plant would bring to our city.

BC Premier David Eby noted Prince George Mayor Simon Yu and the Lheidli T’enneh are on board with the project.

As of March of this year, negotiations between the company, BC Hydro and, the province were still ongoing.

During the BC Natural Resources Forum, BC Hydro President and CEO Chris O’Riley alluded to the crown corporation’s 36 billion dollar investment for community and regional infrastructure projects within the next decade.

Among them is a plan to twin the 500,000-volt hydro transmission line from Prince George to Terrace. The project includes an upgrade to install three capacitor stations to add 500 megawatts and boost capacity by 60 per cent is already underway.

However, during an interview with MyPGNow.com, O’Riley noted even with the transmission line upgrades from PG to Terrace on the horizon, logistical challenges would still remain regarding Fortescue’s 2-billion dollar green hydrogen plant.

“It’s a lot of electricity. We need to work with the customer and try and find ways that we can make that happen. I do not want to pre-judge that work today – I think we need to let that work happen.”

O’Riley is set to appear back in Prince George on August 7th speaking at an event hosted by the Chamber of Commerce from the Courtyard by Marriott Hotel.

Fortescue signed a memorandum of understanding with the Lheidli T’enneh in 2021, they are not negotiating a fulsome Impact and Benefits Agreement.

The plant, if it gets off the ground, is projected to produce “approximately 140,000 tonnes per year of green hydrogen and roughly 800,000 tonnes per year of green ammonia,” – which would make Project Coyote one of the largest hydrogen projects in the country.