Potential Clean Energy Project Green Hydrogen Production at Chute Lake

With funding from Natural Resources Canada (NRCan) and a donation from LNG Canada, the Gitga'at First Nation (GFN) commissioned two studies to explore the feasibility of producing green hydrogen as an economic opportunity.

• A Feasibility Study was completed in April 2024.

• A Front End Engineering and Design (FEED) Study followed in February 2025.

Project Overview

The proposed project involves building a hydroelectric facility that harnesses water flow from Chute Lake to Verney Passage to generate power. This energy will be used to run a 1.04-megawatt (MW) electrolysis facility, which will:

• Treat and store feedwater.

• Use electrolysis to produce gaseous hydrogen from water and electricity.

• Compress and store hydrogen on-site.

• Transport 125,000 kg of hydrogen annually via marine shipping through the Douglas Channel.

Funding and Economic Considerations

NRCan’s Clean Fuel Fund can cover up to 50% of capital costs for Indigenous-led projects. This project is on the smaller end of NRCan’s carbon reduction initiatives. Additional economic benefits may come from:

• Provincial incentives and carbon credits.

• A potential GFN-led hydrogen transportation business.

Next Steps

If GFN Leadership and the Gitga’at Development Corporation (GDC) choose to move forward, the project is expected to:

• Cost: $77.5 million.

• Construction Start: 2028.

• Completion: 2030.

• Preliminary Work: Environmental studies, permitting, and geotechnical investigations.

• Land Use: Requires permits and tenure approvals from the Province, potentially leading to land transfers.

Decision Timeline

By March 2025, GDC and GFN Leadership will need to decide whether to proceed. If the project moves forward, GDC should take over development as soon as possible. GFN can continue advancing the project in the interim but should transfer responsibility to GDC at the earliest opportunity.