Canada Takes a Bold Step Toward a Greener Future with Green Hydrogen Project

In a significant leap toward global decarbonization, World Energy GH2 and the Government of Canada have inked a definitive agreement to develop the country’s first commercial-scale green hydrogen facility. This groundbreaking project, set on the west coast of Newfoundland and Labrador, represents a pivotal moment in Canada’s clean energy journey.

Federal Backing for Green Energy Innovation

The Honourable Seamus O’Regan, Canada’s Minister of Labour and Seniors, announced federal government support for the pioneering green hydrogen/ammonia facility on behalf of the Honourable Mary Ng, Minister of Export Promotion, International Trade, and Economic Development. With a CA$128 million (US$95 million) credit facility arranged by Export Development Canada (EDC), the project is poised to push through to its long-term financing stages.

“World Energy GH2 thanks EDC and the Government of Canada for its support in helping launch the green hydrogen industry here in Newfoundland and Labrador,” said Sean Leet, Managing Director and CEO of World Energy GH2. “This commitment from the federal government reflects the confidence we’ve built in Project Nujio’qonik, both here in Canada and internationally. By consistently achieving key de-risking milestones, we’ve confirmed that Project Nujio’qonik is one of the leading, commercial-scale green hydrogen projects in the world.”

Newfoundland and Labrador: A Clean Energy Powerhouse

Project Nujio’qonik is not just a local project; it’s a statement to the world. Once completed, the facility will produce approximately 210,000 tonnes of green hydrogen and 1.2 million tonnes of green ammonia annually. The project’s first phase alone is expected to generate 400,000 tonnes of green ammonia for export, marking a significant step in meeting Europe’s criteria for green hydrogen, known as RFNBO-compliant (renewable fuels of non-biological origin).

Richard Hugh, CFO of World Energy GH2, emphasized the project’s groundbreaking nature: “Charting and navigating new waters is never an easy undertaking, but our colleagues at EDC, and all levels of the federal and NL provincial governments, have collaborated with us tirelessly to help make this inaugural agreement a defining moment for Canada and the province of Newfoundland and Labrador.”

The project’s impact on the local economy cannot be overstated. The construction phase alone will create around 2,200 direct jobs and 4,200 indirect jobs, with an additional 400 operational jobs once the facility is up and running. This initiative not only positions Newfoundland and Labrador as a leader in the global clean energy transition but also brings substantial employment opportunities to the region.

Leadership in the Global Energy Transition

The project aligns with the Canada-Germany Hydrogen Alliance signed at the Project Nujio’qonik site in August 2022, reinforcing Canada’s commitment to renewable energy leadership. The Honourable Mary Ng highlighted the broader implications of this initiative: “We are committed to reaching net-zero emissions by 2050 by prioritizing clean technology and energy leadership in Canada. This involves emphasizing innovation, creating green jobs, and supporting projects like the World Energy GH2 initiative.”

John Risley, Chair of World Energy GH2, underlined the project’s global significance: “Project Nujio’qonik will surpass the highest global standards for emissions and sustainability, and is poised to deliver against Europe’s ambitious RePowerEU targets for green hydrogen. Meeting those targets will require continued, decisive action by the European Commission and its member states.”

Kyung-il Park, President and CEO of SK eco plant, an investor in the project, added: “Thanks to this commitment from the federal government, we expect our project to move more quickly into the next phase, such as FEED execution and long-lead item orders, which will be of great help in achieving our goal of being the first commercial green hydrogen/ammonia producer in Canada.”

A Timeline of Progress

The journey of Project Nujio’qonik is marked by several key milestones:

June 2022: Environmental Registration
August 2022: Canada-Germany Hydrogen Alliance signed
September 2022: MOUs with Qalipu First Nation and the Town of Stephenville
November 2022: Wind measurement campaign launched
March 2023: Crown lands bid submitted
May 2023: SK eco plant invested US$50 million
June 2023: Acquisition of the Port of Stephenville
July 2023: Pre-FEED completed
August 2023: Environmental Impact Statement submitted
September 2023: Scholarships announced for green energy programs
December 2023: One year of wind data achieved
January 2024: First North American member of the ENERGY HUB Port of Wilhelmshaven, Germany
February 2024: EDC signs definitive agreement for the credit facility

The Path Forward

As Project Nujio’qonik advances, it stands as a beacon of innovation and sustainability. The collaborative efforts of World Energy GH2, the Government of Canada, and international partners signal a new era in green energy production. This project not only fortifies Canada’s position in the global clean energy market but also showcases Newfoundland and Labrador as a hub for renewable energy innovation.

As Minister O’Regan aptly put it: “Newfoundland and Labrador will be a global leader in clean energy. It will be the workers of our province who will sell hydrogen to the world and take home the profits. That’s because of companies like World Energy GH2 and the workers who will make it happen.”

With the firm support of federal and provincial governments, Project Nujio’qonik is set to lead Canada into a new chapter of sustainable energy, driving economic growth and environmental stewardship.

Sources:

World Energy GH2
Government of Canada