Northland Power and Pattern Energy are interested in co-developing the Port au Port-Stephenville Wind Power and Hydrogen Generation Project, or Project Nujio’qonik, according to an environmental impact statement submitted by developer World Energy GH2.
“Discussions are at advanced stages with both companies,” the statement reads. “The Project would then benefit from their onshore wind development experience and local knowledge and relationships.”
In order to finance the project, financial advisor Green Giraffe plans to take a wide market approach using its project finance contacts as well as World Energy GH2’s relationship banks, which are mostly local Canadian banks, the document reads. The advisor plans to conduct the capital raise “in due time” and expects “strong interest” from lenders given the scarcity of green hydrogen projects in the market.
“Lenders will highly value the location (politically stable country with ambitious carbon-neutral targets), the experienced consortium, and the innovative aspect of the project that will be de-risked with adequate mitigations solutions,” according to the EIS.
The project involves 1 GW of wind power to produce hydrogen and ammonia on the Port au Port peninsula, Port of Stephenville, in Newfoundland and Labrador. Future expansions plan for up to 3 GW of energy from additional wind farms.
First production is planned for 2Q24 with full production reached by 3Q35.
In May SK ecoplant, the environment and energy arm of Korea’s SK Group, invested $50m in Project Nujio’qonik, acquiring a 20% stake in the first phase.
