World Energy GH2 and the Government of Canada sign definitive agreement to develop green hydrogen project

Newfoundland and Labrador cements its spot as a leading jurisdiction in the clean energy transition

OTTAWA, ON, Feb. 28, 2024 /CNW/ - The Honourable Seamus O'Regan, Canada's Minister of Labour and Seniors, today announced, on behalf of the Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development, federal government support for Canada's first commercial-scale green hydrogen / ammonia facility on the west coast of Newfoundland and Labrador. 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 (US$95M) credit facility to support the development of Project Nujio'qonik through to its financial close of its long-term financing.

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.

"World Energy GH2 thanks EDC and the Government of Canada for its support in helping launch the green hydrogen industry here in Newfoundland and Labrador," said Sean Leet, Managing Director and CEO, World Energy GH2. "This commitment from the federal government reflects the confidence we've built in Project Nujio'qonik, both here in Canada and internationally. By consistently achieving key de-risking milestones, we've confirmed that Project Nujio'qonik is one of the leading, commercial-scale green hydrogen projects in the world."

Richard Hugh, CFO, World Energy GH2, further commented: "Charting and navigating new waters is never an easy undertaking, but our colleagues at EDC, and all levels of the federal and NL provincial governments, have collaborated with us tirelessly to help make this inaugural agreement a defining moment for Canada and the province of Newfoundland and Labrador."

"Project Njuio'qonik will surpass the highest global standards for emissions and sustainability, and is poised to deliver against Europe's ambitious RePowerEU targets for green hydrogen," said John Risley, Chair, World Energy GH2. "Meeting those targets will require continued, decisive action by the European Commission and its member states. We thank the federal government for their leadership and commitment to moving Canada forward as a leader in the global energy transition."

Kyung-il Park, President and CEO of SK ecoplant, which is an investor in Project Nujio'qonik, expressed his gratitude for the federal government's commitment, saying: "Thanks to this commitment from the federal government, we expect our project to move more quickly into the next phase, such as FEED execution and long-lead item orders, which will be of great help in achieving our goal of being the first commercial green hydrogen / ammonia producer in Canada."

"We are committed to reaching net-zero emissions by 2050 by prioritizing clean technology and energy leadership in Canada," said The Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development. "This involves emphasizing innovation, creating green jobs, and supporting projects like the World Energy GH2 initiative."

The Honourable Seamus O'Regan, Minister of Labour and Seniors, and Member of Parliament, St. John's South?Mount Pearl, Newfoundland and Labrador, Government of Canada, commented: "Newfoundland and Labrador will be a global leader in clean energy. It will be the workers of our Province who will sell hydrogen to the world and take home the profits. That's because of companies like World Energy GH2 and the workers who will make it happen."

The Honourable Gudie Hutchings, Minister of Rural Economic Development, Minister responsible for the Atlantic Canada Opportunities Agency, and Member of Parliament, Long Range Mountains, Newfoundland and Labrador, Government of Canada, commented: "Newfoundland and Labrador has the resources, the workers and the passion to lead the way to power Canada's renewable energy future. Working with partners like World Energy GH2, we will get there."

• June 2022: Environmental Registration 
• August 23, 2022: Canada ? Germany Hydrogen Alliance signed at the Project Nujio'qonik site in Stephenville, Newfoundland and Labrador (NL)
• September 2022: MOUs signed with Qalipu First Nation and the Town of Stephenville
• November 2022: Wind measurement campaign launched
• March 2023: Crown lands bid submitted
• May 2023: SK ecoplant invested USD $50M in Project Nujio'qonik
• June 2023: World Energy GH2 acquired the Port of Stephenville
• July 2023: Pre-FEED (front-end engineering design) completed
• August 2023: Environmental Impact Statement (EIS) submitted
• August 2023: Crown lands secured ~108,000 ha (~266,000 acres)
• September 2023: Scholarships for College of the North Atlantic's green energy programs announced
• December 2023: One year of wind data achieved
• January 2024: First North American member of the ENERGY HUB Port of Wilhemshaven, Germany
• January 2024: Environmental Impact Statement (EIS) Amendment submitted
• February 2024: Export Development Canada (EDC), on behalf of the Government of Canada, signs a definitive agreement in connection with C$128M (US$95M) credit facility

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.

World Energy GH2 is a Newfoundland and Labrador-based renewable energy partnership affiliated with World Energy LLC, one of the world's largest producers of green fuels. Project Nujio'qonik is a consortium of partners advancing a cost-effective wind power-to-green hydrogen/ammonia production facility to be located on the west coast of the province of Newfoundland and Labrador, Canada. Project Nujio'qonik aims to be Canada's first commercial green hydrogen/ammonia producer created from 3+ Gigawatts of wind energy in one of the world's best wind resource regions. Project Nujio'qonik's partners are CFFI Ventures, Columbus Capital, World Energy LLC, Horizon Maritime, and SK ecoplant. https://worldenergygh2.com/ 

SK ecoplant is the environment and energy arm of SK Group, leading the group's future ESG business as a global environmental and energy company. By integrating AI and digital transformation into its entire value chain of the environmental business, SK ecoplant is upgrading its business and accelerating expansion of its operation to the global market from its global operation base in Southeast Asia. The company has grown rapidly in the waste battery recycling sector and renewable energy sectors, including hydrogen, fuel cells, offshore wind power and photovoltaic power. It is also committed to ESG-oriented management for sustainable growth, leading the efforts to solve global environmental and energy issues and achieve a circular economy for zero waste and net zero. http://www.skecoplant.com 

SOURCE World Energy GH2