The Holdogen Hype of NL is on the fumes, but this project by Placentia Bay is going forward

Much of the Hype on hydrogen in Terranova and Labrador has attenuated and the harsh realities that face this nascent industry are launching a cloud of uncertainty on the plans to punctuate the landscape with hundreds of wind turbines and build hydrogen plants from Stephenville to Argentia.

Some have resized their projects by many billion dollars or are exploring alternative business cases for a farm of wind energy, while others have been granted extensions from the provincial government for the millions due to the treasure for the reserve taxes of the land of the crown.

“I am the first to say that things were certainly very hot and heavy, but there is a reality in this,” said the Minister of Energy Andrew Parsons.

And an expert who studies the production, conversion and use of energy tells CBC News that the so -called green hydrogen is still too expensive and is a decade of distance from being commercially practicable, at least without great subsidies.

“The economy would be a challenge,” said Amit Kumar, professor of the University of Alberta.

‘Not mature at the expected rate’

The projects stood out due to the high production costs, slow markets, access to funding and challenges of the construction of the infrastructure.

“The hydrogen/ammonia green market is not maturing at the expected rhythm. Policies, prices and pipelines are not yet ready to support market development,” wrote World Energy Gh2, which promised to develop the first commercial and ammonia green hydrogen project on Canada, wrote in a CBC declaration.

World Energy Gh2 states that it remains engaged in the development of the Nujio’qonik project and “are looking at other opportunities to develop renewable energy in the nearest period”.

It is a perspective that makes you think for a sector that once has kept so many promises.

But the company that imports and distributes most of the fuels consumed in the province and once owned the only oil refinery in the province, it says that it is advancing with a unique approach to provide clean energy in Europe.

North Atlantic Refining Limited (Narl) is proposing to develop what is calling a green energy hub in the port to come by chance in the Bay of Placentia, which for decades has been closely linked to fuel -based fuels based on crude oil, which maintain our vehicles and our planes in operation and many of our heated houses.

Do not mention the word ammonia

Unlike the other five projects found on the drawing table, you will not see the word ammonia in the Narl plans.

Of the six wind hydrogen projects considered in the province, five of which propose to convert hydrogen to ammonia as a method of conservation and transport of this source of energy in the European markets.

But Narl plans to send hydrogen through the Atlantic Ocean using a process called “liquid organic hydrogen carrier” (Lohcs), which allows you to send hydrogen in liquid form.

“We made our evaluations and we decided to go in a different direction,” Jeff Murphy, vice -president of capital projects for Narl, told CBC News.

Are you looking for more? Here’s how the Lohc process works:

Murphy said that the Lohc process is preferred by Narl because the way of transport of ammonia is not “technically mature”.

Narl’s team is going on with an ambitious program. The company intends to present its project to the Province for environmental control by the end of the year, take a final investment decision in the first half of 2026 and start commercial operations within the first quarter of 2029.

“We have a flourishing business and we are trying to reinvest some of the profits of that activity existing in our water-hydrogen project,” added Murphy.

The minister says that there is hope for hydrogen

Despite the conflicting results, Parsons said that “there is still hope” for a hydrogen industry.

All six supporters continue to commit themselves to the provincial government and “tens of millions” in taxes were paid to reserve the hundreds of thousands of acres of crown land that have been put aside for the hydrogen wind industry, he said.

Parsons could not say how much money on land taxes were outstanding, but he said that the government is willing to work with companies to give them more time to guarantee agreements with investors and continue pre-swab work.

“This is the challenge right now with the sector, not different from what we have had challenges when it comes to oil and gas, mining, you call it,” said Parsons.

Two companies, Everwind and Toqlukuti’k Wind and Hydrogen Ltd., have reduced their land reserves of a total combined of 132,000 hectares.

A declaration of Everwind has stated that the company is in “advanced discussions” with potential hydrogen customers in Germany.

“Our main customers are in Europe, where governments continue to invest in hydrogen infrastructures and implement regulations that impose the adoption of green hydrogen”, reads the declaration.

Narl can provide hydrogen at a good price, says Murphy

Jeff Murphy, meanwhile, is confident that Narl will soon provide hydrogen to Europe.

“We believe that we will be able to provide hydrogen at a very competitive cost with what the market is dictating in Europe today,” he said.

The North Atlantic plans to develop a 320 megawatt wind farm on a height of land near SunnySide, overlooking the Toro arm, Trinity Bay, powered by 47 huge turbines and a 25 -kilometer transmission line. This renewable energy will be used to power a plant capable of producing 30,000 tons of so -called green hydrogen every year in the port to come by chance.

The plant will be built on the same website as the North Atlantic logistics terminal, which includes a oil tank docking structure and a farm of tanks with a storage capacity of 4.3 million barrels of various forms of raw and refined fuel.

Narl imports and distributes about 60 % of petrol, diesel and the jet of the province in this structure and believes that its existing infrastructures and skills will offer him a competitive advantage in a very demanding market.

The North Atlantic also hopes to draw on the provincial electricity network for “additional energy” from Terranova and Labrador Hydro, Murphy explained.

Commitment of the current community

Murphy has said that so far millions of dollars have been invested to study winds in the area, to carry out engineering studies to determine development and operational costs, undertake environmental studies and consult nearby communities such as SunnySide, Arnold’s Cove, Arrived and Southern Harbour.

“For the most part, things have been positive,” said Murphy of the feedback during public meetings, adding that the concerns raised to SunnySide led to design changes with the transmission line.

Murphy said that the company’s officials have had talks with potential hydrogen customers in Europe and it is confident that the North Atlantic will soon sign a contract with a buyer.

“We know that those contracts are out there,” he said.

But it is an uphill battle for supporters such as Narl, according to Prof. Amit Kumar.

He believes that in the end there will be a transition to green hydrogen, which is produced by renewable electricity such as wind and hydro. But for now, he said that the most practicable option is “blue” hydrogen, which is produced by natural gas and methane, and emissions are captured and preserved underground.

Kumar said that blue hydrogen is about three times cheaper than green hydrogen.

“Green hydrogen production technology is improving. But my meaning is that it will still take about 10 years to become cheap,” said Kumar.

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