Canadian Hydrogen Project Receives Government Funding

Researched by Industrial Info Resources (Sugar Land, Texas)--Last week, EverWind Fuels (EverWind) (Halifax, Nova Scotia) announced C$125 million (US$91 million) in federal government support for its hydrogen and ammonia project in Point Tupper, Nova Scotia, which will support power generation and hydrogen production for export and domestic use.

The first phase of the two-phase project involves constructing a brownfield hydrogen production facility, utilizing a 200-megawatt (MW) electrolyzer, by converting an existing refined products storage terminal. The electrolyzer will initially be supported by electricity from the grid with a mix of about 30% wind and 70% coal. The hydrogen will be used as feedstock for an ammonia unit addition, capable of producing 200,000 tons per year. First production is expected by the end of 2025; the project has binding offtake agreements in place with Uniper (Dusseldorf, Germany) and E.ON SE (Essen, Germany), both for up to 500,000 tonnes per year.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here to see a full list of detailed project reports related to the first phase. Black & Veatch Incorporated (Overland Park, Kansas) is providing engineering, procurement and construction (EPC) services. A Phase 2 expansion could boost the green ammonia capacity to 1 million tons per year. Click here for the project report.

EverWind is developing three grassroot windfarms to help power the first phase, representing about 530 MW, with a total investment value of about US$1 billion: the 340-MW Windy Ridge and 98-MW Kmtnuk windfarms in Colchester County, and the 89-MW Bear Lake Windfarm in Hants County. The wind turbine power plant generation also will support Nova Scotia's power grid. Subscribers to the GMI Power Project Database can read detailed information on the Windy Ridge, Kmtnuk and Bear Lake projects.

In a November 17 press release, Mary Ng, Minister of Export Promotion, International Trade and Economic Development, said, "Sustainability is about creating opportunities that are both environmentally and economically sustainable. This funding will help to launch EverWind's green energy hub, which through international partnerships, its world-class deep-water terminal in Point Tupper, and incredible wind power, represent an opportunity to create affordable green hydrogen for exports and for domestic decarbonization."

Another governmental effort to support Canada's clean hydrogen production is the 2023 federal budget's C$17.7 billion (US$12.8 billion) worth of clean hydrogen investment tax credits (ITC) between 2023 and 2035, which applies to between 15% and 40% of eligible project costs.

Industrial Info is tracking 25 clean hydrogen projects in Canada, worth more than US$8 billion, nearly all of which are under development. Subscribers can click here for a full list.

Subscribers to the GMI Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).