Elemental Clean Fuels has partnered with Sc.wén̓wen Economic Development and Kruger Kamloops Pulp L.P. to launch an industrial green hydrogen project in Kamloops, British Columbia. The Kamloops Clean Energy Centre (KCEC) will include a 10-megawatt production unit that will supply all of its hydrogen to the Kruger pulp mill.
Partial replacement of natural gas with hydrogen
The project aims to replace approximately 16% of the site’s current natural gas consumption. Estimates indicate that this substitution could lead to a reduction of around 7,000 tonnes of carbon dioxide emissions per year. At the same time, the oxygen generated during the hydrogen production process will be reused in pulp whitening operations, helping to reduce the use of more aggressive chemicals.
The selected technology, not specified in the published documents, will be integrated into Kruger’s existing infrastructure, with no detailed timeline announced. The project is currently in the Front-End Engineering and Design (FEED) phase, with financial support from provincial and federal authorities under British Columbia’s Greenhouse Gas Reduction (Clean Energy) Regulation.
A model for Indigenous-industrial partnerships
Jointly developed with Sc.wén̓wen Economic Development, the economic arm of the Tk̓emlúps te Secwépemc First Nation, the project includes direct community involvement through training opportunities, procurement, and long-term revenue sharing. The partners have not disclosed the planned investment amount or the specific financing terms.
Elemental Clean Fuels will bring technical expertise, project execution capacity, and private capital to structure the project into a bankable opportunity. The company presents this initiative as a replicable model for other regions in Canada where heavy industry and Indigenous communities are seeking collaborative decarbonisation solutions.
Towards a final investment decision
The partners are currently finalising long-term hydrogen offtake agreements. The final investment decision will follow this stage, depending on market conditions and the conclusion of commercial commitments. If approved, the Kamloops site could become a strategic hub in British Columbia’s emerging hydrogen sector.
The implementation of this project falls within the province’s regulatory framework to encourage clean energy for energy-intensive industries. Future developments will depend in particular on the stability of public incentives and the market evolution of natural gas and hydrogen prices.
