Newfoundland and Labrador Pursues $34.5M in Unpaid Fees as Green Hydrogen Production Projects Stall

Back in summer 2023, the Government of Newfoundland and Labrador set aside Crown land for six wind-powered green hydrogen projects, promising a smoother ride toward sustainable energy. But here we are, months later, and three of those outfits are facing non-renewal after skipping their quarterly fees—leaving the province chasing about $34.5 million in owed payments.

Core Summary

Since mid-2023, developers have been billed a quarterly fee equal to 3.5% of land market value. So far, invoices total roughly $54.6 million, with around $20.1 million actually paid. This month, Energy Minister Lloyd Parrott announced that reserves held by World Energy GH2, EverWind and Toqlukuti’k Wind and Hydrogen Ltd. won’t be renewed, thanks to stalled progress and unpaid bills. Meanwhile, Exploits Valley Renewable Energy Corporation (EVREC) and North Atlantic are up to date, and Pattern Energy has confirmed its fees are current even as it pivots to wind-only development.

Technical Snapshot: Wind-to-Hydrogen Electrolysis

All six schemes revolve around onshore wind farms powering electrolyzers that split water into hydrogen and oxygen. The idea is to channel that clean power into hydrogen production, often routing the H₂ into ammonia synthesis for export. Electricity from the turbines feeds proton exchange membrane or alkaline electrolyzers, freeing up H₂. From there, the gas can be compressed, stored, or turned into clean ammonia—a zero-emission tech dream, as long as these plans actually move past the drawing board.

Business Implications and Risk Management

The 3.5% fee was meant to hold land and nudge developers forward. But with three players in arrears, the province is reclaiming land and trying to recoup public funds. In an industry grappling with hefty upfront costs and tangled permitting, this move sends a crystal-clear message: speculative megaprojects must hit milestones or pay the price.

Company Context

World Energy GH2, partnered with CFFI Ventures, says it was blindsided by the non-renewal and is regrouping to respond. EverWind has stayed mum so far, and the ABO Energy–Copenhagen Infrastructure Partners joint venture behind Toqlukuti’k Wind and Hydrogen Ltd. hasn’t spoken up either. On the flip side, EVREC just squared its bill, and North Atlantic locked in its reserve as it eyes its first hydrogen exports to Europe around 2030. Pattern Energy, which shelved its hydrogen/ammonia dreams for straight-up wind, keeps its plot until the next renewal window.

Provincial Strategy and Collateral Impacts

Traditionally, Newfoundland and Labrador leaned on fishing and offshore oil. Now, with its rich wind resources, it’s carving out a spot for industrial decarbonization and broader sustainable energy efforts. By taking a hard line on missed payments, the province frees up Crown land for serious players meeting both cash and construction benchmarks. Yet this also exposes the cracks in the hydrogen infrastructure chain—sky-high capex, debt loads (CFFI Ventures is carrying around US$776 million in debt), and skeptics doubting long-haul supply chains.

Looking Ahead

All eyes are on whether these lagging developers will settle up or challenge the cancellations. In the meantime, reclaimed land could soon host new wind farms, battery storage, or other clean-energy projects. For investors, this episode underlines the importance of solid project governance and realistic timelines in the sprint to build out hydrogen infrastructure. As the buzz around green hydrogen cools off, jurisdictions like Newfoundland and Labrador are fine-tuning their game plan—rewarding concrete progress and cutting back on empty promises.