TEAL Corp (a Quebec based company developing green chemistry projects for the energy and fuel markets) confirms that its green hydrogen and ammonia production plant project based in Sept-Iles represents the cornerstone of the creation and development of a green energy innovation cluster in the area.
“First, TEAL’s production alone will be sufficient to meet the current demand for ammonia in the entire Quebec market. Moreover, the region’s major industries will be able to take advantage of the plant’s proximity to reduce their GHG emissions and decarbonize their operations by replacing hydrocarbons, particularly diesel and bunker fuel, with hydrogen and ammonia,” said Jonathan Martel, President and CEO of TEAL.
This project, which aims to be operational within three to four years, is already the subject of an agreement with SFP Pointe-Noire for a piece of land located in the Sept-Iles industrial port zone near Pier 31, an available pier belonging to the Port of Sept-Iles.
In addition, after two years of discussions with the Société de développement économique de Uashat mak Mani-utenam (SDEUM), TEAL submitted an official partnership proposal in January 2022 with the intention of having the organization as a shareholder in the project and actively participate in its development. This proposal was well received by the SDEUM.
This project represents several significant potential benefits for the North Shore, including:
- the decarbonization of the large industries established in the area through the replacement of fossil fuels by locally produced green energy;
- savings on the cost of transporting this energy for the many large companies established in the area;
- the diversification of the area’ s economy;
- the development of an expertise and knowledge that will have a global impact;
- the creation of new training and employment opportunities as a result of an agreement to be completed in the coming weeks with the Cégep de Sept-Iles.
TEAL is having active discussions with Hydro-Québec and the Government of Québec to obtain the energy block required to power the plant. TEAL’s request is paired with an unmatched value proposition for Hydro-Quebec that would add more than $100 million to the public utility’s revenues, especially from the export markets to the United States. It is a strategic proposal fully aligned with Hydro-Québec’s goal of becoming the “battery of the Northeast”.
TEAL recently concluded a 15-year binding take or pay contract with TRAMMO – an international merchandising and trading company and market leader in ammonia, which markets, trades, transports and distributes key raw materials used in industrial production processes on a global scale. With this agreement, TRAMMO is committed to first and foremost serve the Quebec market. Whilst the local demand will be growing, excess production will be sold through TRAMMO’s channels.
Philippe Machuel, Vice President of TEAL adds: “TEAL is able to support the efforts of Hydro-Quebec and of the Quebec government in relation to the decreasing of the province’s carbon footprint. This is a pioneering Quebec project, close to the large energy intensive industries, to make green fuel available when they are ready to begin their energy transition.”
At the same time, TEAL is also actively working on a low-carbon ammonia production project in Texas. The feasibility study is nearly complete, the company’s preferred site has a memorandum of understanding (MOU) in place, and the power supply strategy is in place with detailed terms and conditions. The next step is to begin the licensing and engineering phase.
All together, both projects could eventually produce more than 500,000 tons of hydrogen and 2.5 million metric tons of ammonia with a very low carbon footprint, making TEAL a Quebec leader in the global energy transition industry.