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: 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.

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