Hon. Josée Verner: Minister, the Hydrogen Strategy for Canada emphasizes green hydrogen because of Canada’s enviable hydroelectric resources, especially in Quebec. This is indeed very promising, but electrolysis is expensive and uses a lot of electricity, which is in limited supply.

In March 2022, Sophie Brochu, the President and CEO of Hydro-Québec, said that the province’s surplus of clean electricity will run out by 2027. What are your thoughts on this important issue? Does it make you think that it might be a good idea to revise the federal strategy in light of this important issue?

Hon. Jonathan Wilkinson, P.C., M.P., Minister of Natural Resources: It’s a very important issue. Certainly, the timeline is short for a project involving so much infrastructure. We have worked hard with our provincial and territorial counterparts. I have a meeting with Minister Fitzgibbon on Wednesday to discuss the issue. Of course, energy and electricity fall under provincial jurisdiction. We know that we have a role to play in supporting the project, particularly when it comes to funding.

Obviously, we can’t have a situation where there is a cost for the people living in the provinces and territories in question, and we have some tools that we want to use, but right now, we are negotiating with our provincial and territorial partners. I am very optimistic that we can come up with a plan that works for Canada and for the provinces and territories, including Quebec, since Quebec is where the energy is coming from.

Hon. Jonathan Wilkinson, P.C., M.P., Minister of Natural Resources: Thank you for the question, senator. It’s an important question, but not a very simple one. With green hydrogen, as some people call it, though I don’t necessarily like to describe it using colours because I think we should talk about the intensity of the carbon emissions during electrolysis instead, choices often need to be made during the process. In other words, we have to decide how we want to use the electricity, and that depends on the circumstances.

The Atlantic provinces want to use wind power to produce hydrogen, but Quebec has a different perspective. Quebec wants to use some hydrogen for domestic use, but it has very little interest in exporting it. As I said earlier, there are other solutions. In Alberta, for example, natural gas can be used to produce hydrogen that doesn’t create much CO₂.

Not all provinces and territories have the same perspective. Of course, we have to make some choices. Electricity costs more than natural gas, which is becoming a more economical choice for now. However, if the cost of electrolysis comes down in the future, this will change.

[English]

Hon. Jonathan Wilkinson, P.C., M.P., Minister of Natural Resources: Thank you for the very important question. The Atlantic Loop is, as you say, a critical project with respect to electricity for Atlantic Canada — enabling the phase-out of coal, and the utilization of non-emitting energy, but also setting up Atlantic Canada for what will be necessary in terms of the augmentation of electricity, which we will need if we are looking to electrify transportation, home heating and a whole range of applications — let alone the need to have an abundance of clean energy to attract industry to come and produce products.

The Atlantic Loop is extremely important. I have been actively working with all of the provinces by speaking with Premier Houston, Premier Higgs and Premier Furey and, of course, with the Government of Quebec. It is a priority for all of us, but it is also something we have to be thoughtful about in terms of how we put it together. Certainly, the federal government recognizes it needs to come to the table to be part of the solution. That is something that we are actively working on. I would say, though, that we do intend to target arriving at some kind of agreement in principle within the first several months of next year. As you say, time is of the essence.