Our province has an opportunity to build a green energy economy for the long-term benefit of Newfoundlanders and Labradorians, and the rest of the world.
Renewable energy generated by Newfoundland and Labrador’s wind will be converted into green hydrogen, which will then be converted to green ammonia for transport to global markets and commercial operations here at home.
We can play a leading role in global green energy development, lowering emissions, and economic development.
Global demand for green energy
There is a significant supply-demand imbalance for green hydrogen and ammonia on global markets which creates a major opportunity for the province. Demand from Europe is already very high and is expected to increase.
Newfoundland and Labrador has the opportunity to develop some of the first large-scale projects that will produce green hydrogen for export to global demand centres, such as Europe, and for some of our own commercial operations.
Green hydrogen is essential for the global energy evolution
Green hydrogen is zero carbon, produced from renewable electricity and water. Hydrogen can be used in a wide range of industries, from heavy industry to transportation. Green hydrogen is forecast to become competitive with fossil fuels by 2030.
Hydrogen is distinguished based on its production method:
Green: produced using renewables
Grey: produced using natural gas
Blue: grey but with carbon capture, utilization, storage (CCUS)
Clean hydrogen can decarbonize entire sectors
Clean H2 can decarbonize industries such as heavy industry, long-haul transport and heating.
Governments recognize the role of hydrogen in the energy transition
COP26 breakthrough agreements for hydrogen are supported by a majority of nations, including Canada, EU, UK, US, India and Japan.
How it works: Wind to hydrogen
Wind turbines generate electricity that is combined with water to develop green hydrogen. The green hydrogen is then converted to green ammonia for ease of transport. Depending on its intended use, the green ammonia can then be converted back to green hydrogen or can be used as green ammonia.
Canada-Germany Hydrogen Alliance
Canadian Prime Minister Justin Trudeau and German Chancellor Olaf Scholz signed a joint declaration of intent on August 23, 2022, in Stephenville, NL, to create a transatlantic green hydrogen supply chain between Canada and Germany with first deliveries aimed for 2025.
The agreement outlines Germany’s intent to import wind – generated hydrogen from Canada as they intend to decrease dependency on Russian imports and find a long-term solution towards decarbonization.
Our opportunity to lead
We have the natural resources and the skilled labour market to play a leading role in the energy evolution. We can take an abundant, renewable resource – our world-class wind – and build a new sector that will create jobs and reduce carbon emissions. In order to play this leading role, we need to act now.