The B.C. government says it is contributing $2-million from the Innovative Clean Energy (ICE) Fund to help design a first-of-its-kind plant in Merritt to capture carbon dioxide and convert it to clean fuels.

In a press release, it says it will help create new jobs and economic opportunities in the province’s cleantech sector.

“The Merritt Electro Fuels Project advances made-in-B.C. technology to capture carbon dioxide directly from the atmosphere and convert it into clean fuels,” Bruce Ralston, B.C.’s Minister of Energy, Mines and Low-Carbon Innovation, said.

“This innovative, world-leading project will support our economy’s shift away from fossil fuels while creating new jobs and opportunities for British Columbians.”

Squamish-based Huron Clean Energy plans to finance, design, build, and operate the plant which will absorb carbon dioxide and turn it into a low-carbon synthetic fuel, which the province says can be a replacement for standard diesel, marine and aviation fuels, through a process called Air-2-Fuels.

“Our vision at Huron Clean Energy is to inspire a global shift toward preserving the planet, and we hope to realize this through the deployment of Carbon Engineering’s game-changing technology across Canada,” Michael Hutchison, the CEO of Huron Clean Energy said, in a statement.

“This will be pure Canadian innovation.”

In total, the Merritt plant will produce an estimated 103 million litres of low-carbon fuel each year while consuming 250,000 tonnes of captured carbon, 315 megawatts of electricity, and 35,200 tonnes of hydrogen.

Government estimates say the design and development phases of the project will led to an estimated 620 direct jobs, with another 4,780 during construction, and 340 long-term jobs during the plant’s operation.

Huron Clean Energy also has an equity partnership and land-lease arrangement with the Upper Nicola Band, which will get a substantial part of the equity interest in the project as consideration for the land lease and other services.

“The economic benefits that could be generated from a project of this magnitude will change forever the people of Upper Nicola, the Nicola Valley, the nation,” Chief Harvey McLeod said.

“By showing and taking the small steps that it takes to make change for Mother Earth, to make change in us as people, this will only be possible when we all work together.”

“Through CleanBC, this project upon completion will significantly reduce emissions while creating long-term, clean jobs for people in the Nicola Valley.”

Huron also has an exclusive licensing arrangement for Canada with Carbon Engineering, a B.C.-based company that removes carbon dioxide directly from the atmosphere through direct air capture.

“Carbon Engineering’s climate solutions were developed here at home in Canada, with B.C. providing the ideal location for our company to innovate and grow. I couldn’t think of a more fitting location for the proposed development of our first commercial air to fuels plant, “CEO Steve Oldham said.

If construction is able to begin in 2022, the Merritt plant could be operational by 2025.

The B.C. government says it will likely lead to the development of similar direct air capture and fuel synthesis plants across Canada and other jurisdictions.