Export Development Canada (EDC), on behalf of the Government of Canada, and World Energy GH2 have signed definitive agreements in connection with a CA$128M ($95M) credit facility to support the development of Project Nujio’qonik through to its financial close of its longterm financing, according to a news release.
The credit facility will help finance the build out of clean power generation and clean hydrogen production that will advance Canada’s efforts and initiatives in pursuit of global decarbonization.
The agreement demonstrates Canada’s continuing material support of the Canada-Germany Hydrogen Alliance signed between the two countries at Project Nujio’qonik’s site in Stephenville, NL, in August 2022, and provides leadership for renewable green energy to be generated and exported to markets in Germany, Europe and around the world, as well as for domestic consumption.
Once complete, Project Nujio’qonik will produce ~210,000 tonnes of green hydrogen per year (1.2 million tonnes of green ammonia) with the first phase expected to produce ~400,000 tonnes of green ammonia for export.
Project Nujio’qonik’s green hydrogen and ammonia will be RFNBO-compliant (renewable fuels of non-biological origin), and will meet Europe’s criteria for green hydrogen. Project Nujio’qonik’s first phase will create approximately 2,200 direct construction jobs, 400 operations jobs, and 4,200 indirect jobs.
RBC Capital Markets and Green Giraffe Advisory are acting as financial advisors for the credit facility on behalf of World Energy GH2. McCarthy Tétrault and McInnes Cooper are acting as legal advisors to World Energy GH2. Norton Rose Fulbright Canada LLP and Stewart McKelvey are acting as legal advisors on the transaction.
