Teal Corp., Magog, Quebec, continues to advance its plans for an 800,000 mt/y ammonia plant at Sept-Iles, Quebec (GM April 1, p. 1), which it plans to have in production in the next 3-4 years.
The company has identified the site of the project, saying it has an agreement with SFP Pointe-Noire for a piece of land located in the Sept-Iles Industrial Port Zone near Pier 31, an available pier belonging to the Port of Sept-Iles. It is also in discussions with Hydro-Québec and the Government of Québec to obtain the energy block required to power the plant.
In addition, after two years of discussions with Quebec’s economic development agency, Société de Développement Économique de Uashat mak Mani-utenam (SDEUM), Teal submitted an official partnership proposal in January 2022 with the intention of having the organization as a shareholder in the project and actively participating in its development. It said the proposal was well received by the SDEUM.
“The project based in Sept-Iles represents a unique opportunity for the North Shore and for the province of Quebec,” said Teal President and CEO Jonathan Martel. “First, Teal’s production alone will be sufficient to meet the current demand for ammonia in the entire Quebec market. Moreover, the region’s major industries will be able to take advantage of the plant’s proximity to reduce their GHG emissions and decarbonize their operations by replacing hydrocarbons, particularly diesel and bunker fuel, with hydrogen and ammonia.”
Teal noted that it recently concluded a 15-year binding take or pay contract with Trammo Inc., New York City. It said the trader committed to first and foremost serve the Quebec market. Teal said while the local demand will be growing, excess production will be sold through Trammo’s channels.
“This agreement is key to financing Teal’s projects as it guarantees the sale of the entire production out,” said Martel.
“This is a pioneering Quebec project, close to the large energy intensive industries, to make green fuel available when they are ready to begin their energy transition,” added Philippe Machuel, Teal Vice President.
Teal and Trammo are working toward other low-carbon production facilities, with one targeted for Texas, where the feasibility study is nearly complete, the preferred site has a Memorandum of Understanding (MOU) in place, and the power supply strategy is in place with detailed terms and conditions. The next step is to begin the licensing and engineering phase.
Teal said both projects could eventually produce more than 500,000 mt/y of hydrogen and 2.5 million mt/y of ammonia with a very low carbon footprint, making Teal a Quebec leader in the global energy transition industry.