N.L.’s wind-hydrogen hype is on fumes, but this Placentia Bay project is forging ahead

The hype surrounding hydrogen in Newfoundland and Labrador may have subsided, but the challenges facing the industry have not disappeared. With high production costs, sluggish markets, and financing difficulties, many projects have stalled or downsized, casting uncertainty over the future of wind-hydrogen developments in the region.

One expert, Amit Kumar from the University of Alberta, believes that green hydrogen is still a decade away from being commercially viable without significant subsidies. This has led to a reassessment of business cases for wind energy farms and hydrogen plants in the province.

While some projects have been put on hold, North Atlantic Refining Limited (NARL) is taking a different approach to delivering clean energy to Europe. Instead of converting hydrogen into ammonia, NARL plans to use a process called liquid organic hydrogen carriers (LOHCs) to transport hydrogen in a liquid form. This unique method allows for easier storage and transportation of hydrogen, making it a more attractive option for the company.

Jeff Murphy, vice-president of capital projects for NARL, is confident in the company’s ability to deliver hydrogen to Europe at a competitive price. With plans to develop a 320-megawatt wind energy farm and a hydrogen production plant at the Port of Come By Chance, NARL is forging ahead with an ambitious schedule.

Despite the challenges facing the industry, Energy Minister Andrew Parsons remains hopeful for the future of hydrogen in the province. While some companies have downsized or explored alternative options, there is still interest in developing a hydrogen industry in Newfoundland and Labrador.

Community engagement and environmental studies are underway for projects like NARL’s wind-hydrogen development, with plans to submit the project for environmental scrutiny later this year. With potential hydrogen customers in Europe and ongoing discussions with investors, NARL is optimistic about the future of its green energy hub at the Port of Come By Chance.

While the road ahead may be challenging, proponents like NARL are committed to overcoming the obstacles and delivering clean energy solutions to the region and beyond. As the industry continues to evolve, the potential for green hydrogen in Newfoundland and Labrador remains a promising opportunity for economic growth and sustainability.