Canadian natural resources minister Jonathan Wilkinson caused a stir in June when he said there are probably six or seven large-scale green hydrogen production and export projects being proposed for Newfoundland and Labrador (NL). Until then, few people outside the province were aware of its substantial potential for green hydrogen development, whether wind-powered or a combination of wind and hydropower.

However, Andrew Parsons, NL’s minister of industry, energy and technology, suggests his federal counterpart has underestimated the number of green hydrogen projects in the works in his province. “Proponents of over a dozen projects have been in contact with our office, with the pace of activity increasing given our province’s long list of advantages,” he tells Hydrogen Economist.

According to Parsons, these advantages include world-class wind resource, which is both strong and steady; surplus hydropower; plentiful fresh water for the electrolysers; lots of crown land for low-cost and relatively smooth development; numerous deep-sea ports for export; proximity to US East Coast and European markets, with shipping distances to Europe half those for US Gulf Coast projects; and a stable and business-friendly provincial government, with a smaller, more agile bureaucracy.

“Proponents of over a dozen projects have been in contact with our office, with the pace of activity increasing given our province’s long list of advantages” Parsons, energy minister

In April, Parsons announced an end to the 15-year moratorium on wind power development in NL. “Previously, the focus of the government was the development of hydropower in the province,” he says. “But now, with our tremendous green hydrogen potential, the time was ripe to end the moratorium on wind power.”

In addition, the NL government is working on a Hydrogen Development Action Plan to further support the province’s emerging green hydrogen industry. “In December 2021, the province released a Renewable Energy Plan,” Parsons says. “A big part of that was green hydrogen. As the upcoming hydrogen plan is a living plan, in the next couple of weeks we will be announcing actions for wind. The final plan should be completed in the next year or so.”

First mover

Only one project has formally applied for a NL environmental assessment. On 21 June, startup World Energy GH2, a consortium of four Canadian companies—CFFI Ventures, Horizon Maritime, World Energy and DOB Academy—applied for the first phase of Project Nujio’qonik GH2, a 0.5GW hydrogen/ammonia production facility in the port of Stephenville on the west coast of the island of Newfoundland to be powered by a 1GW, 164-turbine onshore windfarm.

In total, World Energy GH2 is planning 3GW of wind power and the requisite green hydrogen and ammonia conversion facilities at its proposed Stephenville site at a cost of $10.5-12bn, according to company spokesperson John Risley.  

Project Nujio’qonik GH2 is targeting late 2024 for hydrogen production and exports from its first phase, but this timeline is highly dependent on the NL government’s hydrogen policy.

“It is critical that we have a government policy framework to work within the timeframe required for this project to be successful,” Risley says. “The project is globally competitive, and we want to bring this industry to NL. But the government must be able to work with us in a way that enables the project to proceed.”

To provide its project with greater financial heft, experience and expertise, World Energy GH2 is in discussions with Toronto-based Northland Power and San Francisco-based Pattern Energy to bring them on as co-developers of their project. “We are working with them collaboratively as prospective partners, but their formal commitment will follow their internal governance processes,” says Risley.

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Author: Vincent Lauerman