World Energy GH2’s green ammonia mega-project in Atlantic Canada has been denied an initial environmental approval.
In October, 2023, the Newfoundland and Labrador Ministry of Environment and Climate Change deemed that the environmental impact statement submitted by the company was deficient. World Energy GH2 must now file an amendment.
The project was expected to produce the first green hydrogen by the end of Q2 2024, but has been delayed. An executive at the company told Reuters in December that the project would be delayed due to the inability of German offtakers to handle the product.
The Reuters report did not mention the denial of the environmental approval, which has been on the Ministry’s docket since October.
The project involves the development of a green hydrogen/ammonia production facility, created from 1 GW of renewable energy located on the Port au Port Peninsula. Future expansion includes potential to create up to 3 GW of renewable electricity through the addition of further onshore wind farms.
The overall development plan (including future phases) includes three phases. This includes a 0.5 GW hydrogen facility at the Port of Stephenville, up to 164 turbines generating 1 GW of wind power (with a likely maximum hub height of 121m, plus a rotor diameter of 158 m, for a likely total maximum height of 200 m) and associated transmission and supporting infrastructure.
The CBC reported that the total cost of the project is estimated at $12bn.
The company is working with Green Giraffe as its financial advisor to arrange financing for the project, according to regulatory documents.
Approximately 80% of the hydrogen produced will be used to produce ammonia, with most of the ammonia delivered to existing marine export facilities at the Port by pipelines placed underground or on pipe racks. From there, ammonia will be transported globally by dedicated ammonia carriers and by standard LPG capable vessels.
In May, 2023, the company closed a deal under which SK ecoplant is initially investing $50m in Project Nujio’qonik, acquiring a 20 per cent stake in World Energy GH2 Limited Partnership.
