Canadian province of Newfoundland and Labrador greenlights World Energy GH2’s Project Nujio’qonik

The Canadian provincial government of Newfoundland and Labrador has released World Energy GH2’s Project Nujio’qonik from further environmental assessment following an intensive evaluation of the world’s first environmental impact statement (EIS) for a fully integrated, commercial-scale wind-to-hydrogen project.

Bernard Davis, the province’s minister of environment and climate change, has announced that Project Nujio’qonik has satisfied the provincial Environmental Assessment Act requirements and is approved to proceed in accordance with a series of conditions and the issuance of requisite permits.

For the past 22 months, World Energy GH2 has been working with Stantec on the environmental assessment under provincial regulatory processes.

The EIS and the subsequent amendment include more than 30 baseline studies and environmental protection plans.

Qalipu First Nation, a key partner in the project, also participated in the environmental-assessment process through consultations and by conducting a traditional land and resource use study.

A 27-member environmental-assessment committee, representing 18 provincial and federal government departments, evaluated the EIS and amendment and will continue to be engaged in monitoring Project Nujio’qonik as it advances and construction begins.

“Project Nujio’qonik continues to be one of the most advanced green hydrogen export projects under development globally,” said Sean Leet, the managing director and CEO of World Energy GH2. “We appreciate the government of Newfoundland and Labrador’s approach to conducting their due diligence over the past 22 months, and recognize the continued hard work required by government going forward as we all stand up this new industry. In support of advancing our project, and ensuring Newfoundland and Labrador seizes the opportunity at hand, we have made significant investments in the environmental process. We are committed to advancing our project responsibly and to building a world-class development that will benefit our province, its residents, our country and will contribute to the global fight against climate change.”

John Risley, the chair of World Energy GH2, added, “Industry at home and around the world has been closely watching this decision. Following a thorough, highly regulated environmental-review process, this decision demonstrates that the province is committed to climate action. Newfoundland and Labrador has taken the necessary steps to solidify its position as a global leader in renewable green-energy production. The province recognizes and understands the competitive pressures created by the green-hydrogen subsidies embedded in the U.S. Inflation Reduction Act and the rapidly emerging global demand for green fuels. They are doing the right thing for Newfoundlanders and Labradorians, and for Canadians. Project Nujio’qonik is a catalyst for the green-energy industry in Atlantic Canada and around the world.”

Leet continued, saying, “Our next steps are to update our plans, as may be required, to meet specific conditions outlined by the province, and to finalize the initial permits required to begin early-works construction. In parallel with our early-works activities, we will continue to progress front-end engineering design (FEED) activities, confirm orders for additional long-lead items, and advance and execute offtake agreements as we work toward a final investment decision in early 2025.”

Kyung-il Park, the president and CEO of SK ecoplant, an investor in Project Nujio’qonik, said, “We also appreciate the government of Newfoundland and Labrador’s decision following its extensive and thorough due diligence and assessment process. This decision will provide significant momentum to the province’s emerging renewable energy industry. As a key investor and an EPC partner for the project, we are committed to bringing new and meaningful opportunities by utilizing the abundant natural resources of Newfoundland and Labrador, while minimizing the environmental impact on the province and local communities. We will continue to work closely with various stakeholders in the communities to ensure that the project will be developed in a responsible and sustainable manner.”

Project Nujio’qonik milestones:

June 2022: Environmental registration.

Aug. 23, 2022: Canada-Germany Hydrogen Alliance signed at the Project Nujio’qonik site in Stephenville, Newfoundland and Labrador.

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$50 million in Project Nujio’qonik.

June 2023: World Energy GH2 acquired the Port of Stephenville.

July 2023: Pre-FEED completed.

August 2023: EIS submitted.

August 2023: Crown lands secured (approximately 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: EIS amendment submitted.

February 2024: Export Development Canada, on behalf of the government of Canada, signs a definitive agreement in connection with a USD$95 million credit facility.