Just six months into 2024, the province of Newfoundland and Labrador has made significant strides in its renewable hydrogen production goals as new clean energy projects begin to move forward.
The geographical positioning of the Atlantic Canada region itself — encompassing the provinces of New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince Edward Island — brings great advantage to hydrogen production pursuits. Across all four, government officials have identified that nuclear hydrogen, mixed feedstock hydrogen, hydro and renewable hydrogen production present the best economic opportunities.
In May 2024, Minister of Industry, Energy and Technology (IET) Andrew Parsons released Newfoundland and Labrador’s new Hydrogen Development Action Plan.
“Our plan provides a focused approach to hydrogen development in the province, and sends a strong signal to residents, businesses and investors,” said Parsons. “This approach will increase the province’s competitiveness and lead to increased employment and economic diversification, including in rural areas.”
Building upon the department’s 2021 Renewable Energy Plan and the Climate Change Action Plan, this addition specifically caters to four target areas: export and domestic markets; partnership, innovation and industry support; training and jobs; and regulatory framework.
In the official Hydrogen Development Plan, it is noted that global demand for hydrogen is expected to grow from 95 million metric tons (Mt) in 2022 to 150 million Mt by 2030. As current top producers such as China and the U.S. take more aggressive approaches to boosting the industry and their respective green hydrogen strategies, now is the time to become more competitive.
A study conducted by independent energy research company Rystad Energy showed that by 2030, Canada is projected to produce nearly 1.6 million Mt of green hydrogen. Newfoundland and Labrador in particular has one of the greatest opportunities to excel in the international market due to marine access. In addition, natural resources such as wind, water, land availability and underground storage make it ideal for large-scale production.
It Gets Windy
Currently, four projects selected through the Crown Land Call for Bids for Wind Energy Projects are under development throughout the province.
The largest wind hydrogen project will cover almost 667 acres on the Burin Peninsula. This site, operated by EverWind NL Company, will bring a wind farm production facility with storage capacity for hydrogen and ammonia produced.
Toqlukuti’k Wind and Hydrogen (ABO) will be located slightly north on 266,000 acres of the Isthmus region. ABO will be jointly developed alongside Braya Renewable Fuels, who recently began commercial operations at the newly converted Come By Chance Refinery. In February 2024, Braya began its renewable diesel fuel and sustainable aviation fuel production, with an initial capacity of 18,000 barrels of renewable diesel per day.
The site is well positioned in terms of local feedstocks and proximity to U.S. and European markets. As the company looks to add green hydrogen to its roster in future years, the ABO wind farm becomes a valuable asset.
“As an experienced pioneer in the development of renewable energy projects, ABO Wind will be a great partner in Braya’s mission to meet the growing global demand for renewable fuels,” said Braya Renewable Fuels’ then-CEO Frank Almaraz in September 2023. “Securing the land for our joint project is a significant milestone toward realizing Braya’s vision to become a world leader in renewable fuels production. We look forward to working with ABO Wind to add green hydrogen to our portfolio.” Braya one month later welcomed new CEO Todd O’Malley, allowing Almaraz, now an operating partner with the Cresta family of companies that includes Braya, to focus more on Braya’s green hydrogen, wind and ammonia export development plans.
To the west of both EverWind and ABO, World Energy GH2’s wind project will largely cover three different areas of its 266,000 acres. The company will place wind turbines throughout each area with storage facilities in place. In April 2024, IET announced it would extend a wind reserve consideration letter to Argentia Renewables Wind LP (Pattern) to introduce wind turbines on over 6,000 acres of the Wind Energy Contingency Land Reserve.
The IET’s approval of this land would allow the company to support operations at its 300-megawatt wind-hydrogen project being constructed at the Port of Argentia, if needed.
Overall, all of the projects are expected to bring a $206 billion economic impact to the province’s GDP over the next 40 years and create more than 13,000 direct and indirect jobs.
