Prime Minister Justin Trudeau and German Chancellor Olaf Scholz are set to sign a green energy deal later this month in Newfoundland that could prove critical to Canada’s nascent hydrogen industry.
The German government released a statement on Friday confirming 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 because Russia’s invasion of Ukraine has caused natural gas prices to spike. In addition, Russia has reduced its flow of natural gas to its European customers, raising concerns about supply shortages.
Meanwhile, the company behind the Newfoundland project, World Energy GH2, has said that the first phase of the proposal calls for the construction of 164 onshore wind turbines to power a hydrogen production facility at the deepwater port of Stephenville. Long-term plans call for tripling the size of the project.
“There is greater urgency for Canada to enter this new market that is in such high demand,” said Stephenville Mayor Tom Rose, noting that the province did not lift a moratorium on wind farm development until this year.
“We are poised to be the green energy hub of North America.”
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Among the companies behind the project is CFFI Ventures Inc., run by Nova Scotia-based billionaire John Risley, best known as a 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 before the signing ceremony.
Rose said Stephenville is an ideal location for a wind farm because the area is known for having a world-class “wind corridor.” Additionally, the city has the means to produce the large amounts of water needed for hydrogen production because heavy-duty infrastructure remains in place from the Abitibi-Price paper mill that closed in 2005.
Trudeau and German Chancellor Olaf Scholz will sign a hydrogen deal in Newfoundland. #CDNPoli
“It seems to be the energy of the future and the demand is very strong,” said Rose, who was born and raised in the area. “We are stepping up when another country needs our resources.”
The multimillion-dollar project was registered in the province in June and now requires an environmental impact statement.
In its proposal, World Energy GH2 says it is at the forefront of a new green industry.
“The development of large-scale green hydrogen production facilities is just beginning, providing (Newfoundland and Labrador) and Canada the opportunity and advantage to be pioneers in the green energy sector,” the proposal says.
“(Newfoundland and Labrador’s unique geography, strong wind resource and proximity to large demand centers will make it a globally competitive green hydrogen producing region.”
The company notes that the vast majority of existing hydrogen production relies on natural gas or coal for its electricity, meaning it produces unwanted carbon emissions.
Meanwhile, the company says construction of its first wind farm is scheduled for late 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 short visit to Canada that will include previous stops in Montreal and Toronto, starting on August 21.
This report from The Canadian Press was first published on August 14, 2022.