Canadian government supports nation’s first-of-its-kind green H2 project
March 8, 2024Canada’s pioneering project will make its home in Newfoundland and Labrador.
The Government of Canada agreed to back a commercial-scale green H2 (hydrogen) and ammonia production facility that will be built on the west coast of Newfoundland and Labrador. Better known as Project Nujio’qonik, the government hopes that this project will help the nation achieve its 2050 net-zero emissions goal.
Enhancing clean power and clean hydrogen initiatives.
Meeting its ambitious net-zero emissions goal is no small feat for Canada. However, this project, which has been given a CA$128 million (roughly $95 million) credit facility, can help to finance the growth of clean energy and green H2 production in accordance with the country’s decarbonization initiatives and efforts.
The credit facility will help the project get off the ground until it can secure its own long-term financing.
Green H2 for domestic use and for exports.
The green H2 project is an agreement between World Energy GH2 (the developer of Project Nujio’qonik) and Export Development Canada (on behalf of the nation’s government). According to World Energy GH2, the agreement demonstrates Canada’s support for the Canada-Germany Hydrogen Alliance, which was signed by both nations at the project site in Stephenville, back in August 2022. Moreover, the agreement shows leadership for the production of renewable power that can be used domestically as well as be exported to markets in Germany, Europe and across the globe.
Commenting on the government’s recent announcement to support the project, Jonathan Wilkinson, Minister of Energy and Natural Resources, said that the investment in the project will “strengthen” the country’s position as a world leading supplier of clean power and clean technology.
“Where the sand blows”
The project is expected to generate about 250,000 tons of green H2 annually. The hydrogen will be produced using wind power, which is fitting as the project’s name, Nujio’qonik (pronounced “new-geo-ho-neek”), means “where the sand blows” and is the Mi’kmaw name for Bay St. George, according to World Energy GH2.
The first phase of the project is expected to yield almost 400,000 tons of green ammonia, which will be exported.
Energy independence and security.
Green H2 and green ammonia projects are gaining support as more governments and companies see these clean technologies as a necessary part of advancing the world’s transition to a low-carbon economy.
It will be interesting to see if Canada’s first commercial green hydrogen plant and pioneering project in North America will be able to live up to the high hopes its supporters have for it, once the project comes to fruition.
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