Why Hydrogen at a Kamloops BC Pulp Mill Fails the Cost Test - CleanTechnica

The article from CleanTechnica examines the challenges and economic viability of using hydrogen as an energy source in pulp and paper mills, focusing on a proposed project at the Kruger pulp mill in Kamloops, British Columbia. Pulp mills are significant fossil gas consumers, especially in lime kilns and recovery boilers, and are under pressure to decarbonize while maintaining economic stability in their communities. Hydrogen developers see these mills as potential markets, but past attempts, such as a project in Prince George that aimed to use by-product hydrogen from a chemical plant, failed when the chemical plant and mill closed, highlighting the fragility of hydrogen projects dependent on narrow industrial supply chains. The Kamloops project involves a 10 MW electrolyzer intended to produce about 4 tons of hydrogen and 32 tons of oxygen daily, aiming to reduce the mill’s fossil gas use by approximately 16% by substituting hydrogen in the lime kiln. Despite its promise as a decarbonization step, the project faces significant economic