Newfoundland and Labrador, the gusty Atlantic province of Canada, has taken a significant step toward fulfilling its commitment to supply green hydrogen to Germany by 2025. On Wednesday, the province selected four companies to develop wind farms for powering hydrogen plants, contingent upon further approvals.
The selected companies, EverWind NL Company, Exploits Valley Renewable Energy Corp, ABO Wind, and World Energy GH2, have been granted the opportunity to seek approval for the use of government land, subject to environmental assessments.
Canada's pledge to provide green hydrogen to Germany is part of its efforts to promote cleaner energy solutions and reduce carbon emissions. However, this endeavor faces several challenges, including equipment shortages and local opposition. Additionally, questions have arisen regarding the efficiency of harnessing Canadian renewable energy to produce hydrogen for export to Europe.
Canada is not alone in its pursuit of a dominant position in the global hydrogen market. The U.S. Gulf Coast region and various other parts of the world are also vying for prominence in the future of hydrogen trade.
World Energy GH2, one of the selected companies, recently submitted its environmental impact statement for its hydrogen project to the provincial government. The company aims to commence hydrogen production in 2025. However, some residents have expressed concerns about the potential visual impact of wind farms on Newfoundland's pristine landscape.
Once the federal government finalizes tax credits for green hydrogen plants, World Energy GH2 intends to engage in negotiations for off-take agreements with hydrogen buyers and raise additional equity. According to CEO Sean Leet, the company believes that the hydrogen market will experience an ongoing shortage of supply in the foreseeable future.
