Prime Minister Justin Trudeau and German Chancellor Olaf Scholz are expected to sign a green energy deal later this month in Newfoundland that could prove critical for Canada’s nascent hydrogen industry.
The German government issued a statement on Friday confirming that the deal will be signed on August 23 in Stephenville, where a Newfoundland-based company plans to build a zero-emissions plant that will use wind power to produce hydrogen and ammonia for export.
If approved, the project would be the first of its kind in Canada.
Germany is eager to find new energy sources as Russia’s invasion of Ukraine has led to skyrocketing natural gas prices. Additionally, Russia has reduced its supply of natural gas to its European customers, raising concerns about supply shortages.
Meanwhile, the company behind the Newfoundland project, World Energy GH2, said the first phase of the proposal calls for the construction of 164 onshore wind turbines to power a hydrogen generation facility at the port in Stephenville deep water. Long-term plans call for tripling the size of the project.
“It is increasingly urgent for Canada to enter this new market that is so in demand,” said Stephenville Mayor Tom Rose, who noted that the province has not lifting of the moratorium on the development of wind farms before this year.
“We are now poised to be the green energy hub in North America.”
Among the companies behind the project is CFFI Ventures Inc., led by Nova Scotian billionaire John Risley, best known as the co-founder of Clearwater Seafoods.
As for Trudeau and Scholz, Rose said they will be joined in Stephenville by cabinet ministers and a delegation of German business leaders who will attend a green energy trade show ahead of the signing ceremony.
Rose said Stephenville is an ideal location for a wind farm because the area is known to have a world-class “wind corridor.” In addition, the city has the means to produce the large quantities of water necessary for the production of hydrogen, because the heavy infrastructure remains in place from the Abitibi-Price paper mill which closed in 2005.
“It seems to be the energy of the future and the demand is very high,” said Rose, who was born and raised in the area. “We step in when another country needs our resources.”
The multi-billion dollar project was registered with the province in June and now requires an environmental impact statement.
In its proposal, World Energy GH2 claims to be at the forefront of a new green industry.
“The development of large-scale green hydrogen production facilities is just beginning, offering (to Newfoundland and Labrador) and Canada the opportunity and benefits of being a frontrunner in the hydrogen sector. green energy,” the proposal reads.
“(Newfoundland and Labrador’s unique geography, strong wind resources and proximity to major demand centers will make it a globally competitive green hydrogen producing region.”
The company points out that the vast majority of existing hydrogen production relies on natural gas or coal for its electricity, which means it produces unwanted carbon emissions.
Meanwhile, the company says construction of its first wind farm is scheduled for the end of next year on the Port au Port peninsula.
In Cape St. George, which is on the peninsula, Mayor Stella Cornect said residents are concerned about the project’s potential impact on the area’s delicate ecosystem, which includes rare and endangered plants.
On Saturday, the Prime Minister’s Office confirmed that Trudeau will accompany the Chancellor on a brief visit to Canada that will include earlier stops in Montreal and Toronto, starting Aug. 21.
This report from The Canadian Press was first published on August 14, 2022.