Canada backs World Energy GH2’s green hydrogen project with $95M

The Government of Canada has agreed to support the development of Project Nujio’qonik, the country’s first commercial-scale green hydrogen/ammonia facility on the west coast of Newfoundland and Labrador.

Illustration only; Archive. Courtesy of Port of Stephenville

To this end, World Energy GH2, the developer of Project Nujio’qonik, and Export Development Canada (EDC), on behalf of the Government of Canada, have signed definitive agreements for a CA$128 million (US$95 million) credit facility to support the project’s development through to the financial close of its long-term financing.

The credit facility will help finance the build-out of clean power generation and clean hydrogen production in line with Canada’s decarbonization efforts and initiatives.

According to World Energy GH2, the agreement demonstrates Canada’s material support of the Canada-Germany Hydrogen Alliance signed between the two countries at Project Nujio’qonik’s site in Stephenville in August 2022 and provides leadership for renewable green energy to be generated and exported to markets in Germany, Europe and around the world, as well as for domestic consumption.

The project will be constructed on the west coast of Newfoundland and Labrador and will ultimately produce around 250,000 tonnes of green hydrogen per year (1.2 million tonnes of green ammonia) with the first phase expected to produce nearly 400,000 tonnes of green ammonia for export.

The project already owns the Port of Stephenville, which includes the land for the plant facility.

Pre-FEED phase of the project was completed in July 2023 followed by the submission of an Environmental Impact Statement (EIS) in August 2023. Shortly after, World Energy GH2 was granted approval of Crown land application by the province of Newfoundland and Labrador for this large-scale green hydrogen project.

In January 2024, World Energy GH2 announced it had officially become a member of Port of Wilhelmshaven’s ENERGY HUB, an initiative that gathers more than 40 green hydrogen industry-focused companies and government players.

Wilhelmshaven will be one of the first German ports to receive green hydrogen Project Nujio’qonik.

Commenting on the agreement with the Canadian government, Sean Leet, Managing Director and CEO of World Energy GH2, said: “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.

“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.”

Jonathan Wilkinson, Minister of Energy and Natural Resources, stated: “Today’s investment in World Energy GH2 will strengthen Canada’s position as a leading supplier of clean energy and technology to the world. 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. I congratulate World Energy and all those involved in this significant investment in Canada’s green industrial future.”