Canada’s province clears World Energy GH2’s green hydrogen project

The government of Canada’s province Newfoundland and Labrador has released World Energy GH2’s Project Nujio’qonik from further environmental assessment following an evaluation of the Environmental Impact Statement (EIS) for a fully-integrated commercial-scale wind-to-green hydrogen project.

The government announced that Project Nujio’qonik has satisfied the provincial Environmental Assessment Act requirements and is approved to proceed in accordance with a series of conditions and the issuance of requisite permits.

The 22-month assessment was done in collaboration with Stantec, World Energy GH2 said, adding that Qalipu First Nation, a partner in the project, participated in the process through consultations and by conducting a Traditional Land and Resource Use Study.

According to World Energy GH2, a 27-member Environmental Assessment Committee, representing 18 provincial and federal government departments, evaluated the EIS and its subsequent Amendment, and will continue to be engaged in monitoring the project as it advances and construction begins.

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.

Sean Leet, Managing Director and CEO of World Energy GH2, stated: “In support of advancing our project, and ensuring Newfoundland and Labrador seizes the opportunity at hand, we have made significant investments in the environmental process. We are committed to advancing our project responsibly and to building a world-class development that will benefit our province, its residents, our country, and will contribute to the global fight against climate change.”

“Our next steps are to update our plans, as may be required, to meet specific conditions outlined by the province, and to finalize the initial permits required to begin early works construction. In parallel with our early works activities, we will continue to progress FEED (front-end engineering design) activities, confirm orders for additional long-lead items, and advance and execute offtake agreements as we work toward a final investment decision in early 2025.”

John Risley, Chair of World Energy GH2, added: “Following a thorough, highly regulated environmental review process, this decision demonstrates that the province is committed to climate action… The province recognizes and understands the competitive pressures created by the green hydrogen subsidies embedded in the US Inflation Reduction Act and the rapidly emerging global demand for green fuels.”

To remind, at the beginning of 2024, World Energy GH2 and Export Development Canada (EDC), on behalf of the Government of Canada, 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 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 the project.