The hydrogen generated by the Kamloops Clean Energy Centre (KCEC) is intended to replace 16% of the mill’s consumption of natural gas for its lime kiln.
The funding will support CHAR Tech’s biocarbon commercial pellet operations, using sawmill residuals, in a former pulp and paper plant in Thorold, Ont.
The company cited challenging market conditions and ongoing economic uncertainty for the change, which affects facilities in Quebec, Ontario and the U.S.
Scheduled to start up in early 2026, it will seek input from industry members, provinces and territories, Indigenous foresters, communities and labour groups.