Published by Todd Bush on March 5, 2026
The Kamloops Pulp Mill, which has been in operations for more than 50 years, was acquired by Kruger Inc. in 2022. It will soon test using green hydrogen in part of the pulp-and-paper-making process. Supplied/Kruger Inc.
A British Columbia pulp mill that’s been in operation for more than 50 years will test a way to replace carbon-emitting natural gas with clean-burning ‘green’ hydrogen made from water.
The novel approach is expected to reduce the Kruger Kamloops Pulp Mill’s greenhouse gas emissions by 7,000 tonnes a year – the equivalent of removing 1,200 to 1,500 vehicles from the roads, according to Zachary Steele, chief executive of Elemental Clean Fuels, the developer behind the green hydrogen project.
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The initiative aligns with a federal strategy that prioritizes hydrogen over coal, and oil and natural gas in the industrial, power generation and transportation sectors. The government expects hydrogen to be a core component of achieving Canada’s net-zero-by-2050 target and is offering investment tax credits to clean hydrogen producers.
The hydrogen initiatives receiving government support are helping to prove the resource’s business case by testing whether it can be produced and deployed at a cost competitive with fossil fuels, which carry their own extraction and transportation expenses.
The existing Kamloops pulp mill, which Kruger Inc. acquired in 2022, specializes in producing the heavy brown paper that’s used for packaging and shipping.
To lower the mill’s carbon footprint, the 10-megawatt Kamloops Clean Energy Centre will be located alongside the mill’s existing lime kiln, an industrial unit used in the pulp-and-paper-making process.
The centre will house electrolyzer equipment that splits water into its two elements: hydrogen and oxygen. These gases will be stored in tanks, with the hydrogen used to power the kiln and recycle the lime used in the process, while the oxygen will be used to bleach the paper and lighten its colour.
“We started this project because we have a responsibility to be caretakers of this land for future generations,” says Joshua Gottfriedsen, chief executive of Sc.wén̓wen Economic Development Corporation, the business arm of Tk̓emlúps te Secwépemc First Nation, which is affiliated with the project alongside Elemental Clean Fuels and Kruger Kamloops Pulp LP.
The $21.7-million project, located on traditional Indigenous territory but not on reserve, is seeking financing from Natural Resources Canada through a clean energy fund targeted toward projects with 50-per-cent-minimum Indigenous ownership.
“Elemental came to us with a green energy source that offers a unique opportunity to find a viable option to reduce carbon emissions at this mill, but can also prove a concept that can be used by other industries,” Mr. Gottfriedsen says.
The electricity used to power the Kamloops project comes from B.C.’s grid, which generates about 98 per cent of its power from renewable, low-carbon sources – primarily hydroelectric dams.
The mill also plans to generate more electricity than it uses. By burning wood residues and tree bark that are unusable in the pulp-making process, the mill is able to power turbines and feed electricity back to B.C.’s grid.
Using green hydrogen to power the pulp mill’s lime kiln is a step toward Kruger Inc.’s goal of becoming more renewable, says general manager of the Kamloops Pulp Mill, Irene Preto.
“Sustainability drives every decision we make,” says Ms. Preto. “By integrating green hydrogen into our operations, we will be reducing emissions, supporting a circular economy and contributing to British Columbia’s clean-energy targets.”
The project will house electrolyzer equipment that splits water into its two elements: hydrogen and oxygen. These gases will be stored in tanks, with the hydrogen used to power the kiln and recycle lime, and the oxygen used to bleach paper and lighten its colour. Supplied/Kruger Inc.
Since 2020, at least 80 low-carbon-emitting hydrogen projects have been announced, representing over $100-billion in potential investment, according to Natural Resources Canada.
“There is a great potential for Canada to be a global champion in hydrogen ecosystem development,” says Dr. Ibrahim Dincer, director of the Clean Energy Research Laboratory at Ontario Tech University.
Last year, Dr. Dincer and his research assistant, Görkem Kubilay Karayel, studied the potential of using hydrogen fuel that’s been produced through biomass and waste.
Due to Canada’s widespread biomass resources, the researchers say the country will be able to transition toward renewable energy sources more easily than other nations, which could position Canada as a leader in the field.
In a separate study, the same researchers also found every province and territory has tangible potential for significant green hydrogen production, with Quebec, Alberta, British Columbia and Ontario showing the most promise.
However, they note there are still obstacles to green hydrogen production, including high costs, as well as issues with infrastructure, storage and transportation.
In addition to biomass and waste combustion, other sources of electricity used to create green hydrogen include hydro, wave and tidal, undersea current and geothermal.
While the Kruger mill’s use of green hydrogen supports Canada’s overall hydrogen strategy, critics have questioned its impacts.
An op-ed published on CleanTechnica, a clean tech news site, argues that the mill’s natural gas consumption could be as easily reduced without hydrogen and by using standard oxygen-manufacturing equipment and electric kilns.
However, Mr. Steele of Elemental Clean Fuels is adamant that hydrogen electrolysis has important advantages such as lower costs. He also thinks it will prove to be the more practical decision in the long run.
“We believe our approach, which has received years of thought, is the right solution in terms of safety and economics and operational capabilities to decarbonize our process,” he says.
“There are no emissions or waste, and it all fits within the existing building on site, so it’s a pretty elegant solution. Any time you introduce a brand-new technology, there are always questions, and we want to answer them and see where this leads us.”
Mr. Steele says his company’s goal is to develop hydrogen projects across Canada. “We believe they will lead to greater adoption, more projects, wider application and cheaper, more efficient energy solutions,” he says.
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