The Government of Canada has agreed to support the construction and development of the country’s first commercial-scale green hydrogen and ammonia facility in Newfoundland and Labrador.
Announced on Monday, the government has agreed to give World Energy GH2, the organization behind Project Nujio’qonik, a CAD$128 million credit facility to help the project’s development until it can find its own long-term financing.
The credit facility will aid in financing the construction of clean power generation and clean hydrogen production, aligning with Canada’s decarbonization efforts and initiatives.
World Energy GH2 says that the agreement showcases Canada’s significant support for the Canada-Germany Hydrogen Alliance. The two countries signed at Project Nujio’qonik’s site in Stephenville in August 2022. It also provides leadership for generating renewable green energy to export to markets in Germany, Europe, and worldwide, as well as for domestic consumption.
“Today’s investment in World Energy GH2 will strengthen Canada’s position as a leading supplier of clean energy and technology to the world,” Jonathan Wilkinson, Minister of Energy and Natural Resources, said.
“Through our offshore wind bill, C-49, we plan to unlock Newfoundland and Labrador’s clean power potential while advancing our commitments under the Canada-Germany Hydrogen Alliance, announced in Stephenville.”
The project will build on the west coast of Newfoundland and Labrador and is expected to ultimately produce around 250,000 tonnes of green hydrogen per year (equivalent to 1.2 million tonnes of green ammonia), with the first phase anticipated to yield nearly 400,000 tonnes of green ammonia for export.
The project already possesses ownership of the Port of Stephenville, which encompasses the land designated for the plant facility.
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World Energy GH2 joined green hydrogen initiative in the summer
In July 2023, the project completed the Pre-FEED phase, followed by the submission of an Environmental Impact Statement (EIS) in August 2023. Shortly afterward, the province of Newfoundland and Labrador approved World Energy GH2’s Crown land World Energy GH2 for this project.
World Energy GH2 announced its official membership in the Port of Wilhelmshaven’s ENERGY HUB at the start of this year. The initiative comprises over 40 companies and government entities focused on the green hydrogen industry.
Wilhelmshaven will be among the first German ports to receive green hydrogen from Project Nujio’qonik.
Green hydrogen and ammonia projects are necessary for advancing the global transition to a low-carbon economy. These initiatives play a pivotal role in mitigating climate change by reducing greenhouse gas emissions.
Additionally, green hydrogen and ammonia serve as versatile energy carriers that can be efficiently stored and transported. These facilitate the integration of renewable energy into existing infrastructure and addressing challenges.
These projects also promote energy independence and security by decreasing reliance on fossil fuels and enhancing energy resilience. Furthermore, they stimulate economic growth and job creation, driving innovation and investment in clean energy technologies. In essence, green hydrogen and ammonia projects are essential for fostering a sustainable and prosperous energy future.
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