Canada, Germany to sign hydrogen deal in N.L.

Prime Minister Justin Trudeau and German ChancellorOlaf Scholz are set to sign a green energy agreement later thismonth in Newfoundland that could prove pivotal to Canada's nascenthydrogen industry.

The German government on Friday issued a statement confirming theagreement will be signed Aug. 23 in Stephenville, where aNewfoundland-based company plans to build a zero-emission plant thatwill use wind energy to produce hydrogen and ammonia for export.

If approved, the project would be the first of its kind in Canada.

Germany is keen to find new sources of energy because Russia'sinvasion of Ukraine has led to a surge in natural gas prices. Aswell, Russia has reduced its flow of natural gas to its Europeancustomers, prompting concerns about supply shortages.

Meanwhile, the company behind the Newfoundland project, WorldEnergy GH2, has said the first phase of the proposal calls forbuilding up to 164 onshore wind turbines to power a hydrogen productionfacility at the deepsea port at Stephenville. Long-term plans callfor tripling the size of the project.

"There is a heightened urgency for Canada to step into this newmarket that's in such high demand," said Stephenville Mayor TomRose, who noted the province did not lift a moratorium on wind farmdevelopment until this year."We're poised now to be the green energy hub of NorthAmerica."

Among the companies behind the project is CFFI Ventures Inc., ledby Nova Scotia-based billionaire John Risley, who is best known asco-founder of Clearwater Seafoods.

As for Trudeau and Scholz, Rose said they will be joined inStephenville by cabinet ministers and a delegation of Germanbusiness leaders who will attend a green energy trade show beforethe signing ceremony.

Stephenville 'ideal' place

Rose said Stephenville is an ideal place for a wind farm becausethe area is known for having a world-class "wind corridor." Aswell, the town has the means to produce the large amounts of waterneeded for hydrogen production because heavy-duty infrastructureremains in place from the Abitibi-Price paper mill that closed in2005.

"It appears to be the energy of the future and the demand isvery robust," said Rose, who was born and raised in the area."We're stepping up when another country needs our resources."

The multibillion-dollar project was registered with the provincein June and now requires an environmental impact statement.

In its proposal, World Energy GH2 says it is on the cutting edgeof a new, green industry.

"The development of large-scale green hydrogen productionfacilities is just starting, providing [Newfoundland and Labrador]and Canada with the opportunity and advantages of being a firstmover in the green energy sector," the proposal says."[Newfoundland and Labrador's] unique geography, strong windresource and proximity to large centres of demand, will make it aglobally competitive green hydrogen producing region."

The company points out that the vast majority of existinghydrogen production relies on natural gas or coal for itselectricity, which means it produces unwanted carbon emissions.

Meanwhile, the company says construction of its first wind farmis slated for late next year on the Port au Port Peninsula.

In Cape St. George, which is on the peninsula, Mayor StellaCornect has said residents are worried about the project's potentialimpact on the area's delicate ecosystem, which includes rare andendangered plants.

On Saturday, the Prime Minister's Office confirmed Trudeau willaccompany the chancellor on a brief Canadian visit that will includeearlier stops in Montreal and Toronto, starting Aug. 21.

Read more from CBC Newfoundland and Labrador