Canadian companies are known for their sustainable approach to resource development and are leaders in innovative clean energy technologies.
On February 28, the Honourable Gudie Hutchings, Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency, and the Honourable Seamus O'Regan Jr., Minister of Labour and Seniors, announced on behalf of the Honourable Mary Ng, Minister of Export Promotion, International Trade and Economic Development, an agreement to support the development of Canada's first commercial-scale green hydrogen and ammonia facility in Newfoundland and Labrador.
World Energy GH2 and Export Development Canada, on behalf of the Government of Canada, reached an agreement on terms for a US$95 million (approximate Can$128 million) credit facility to support the development of Project Nujio'qonik, located on the west coast of Newfoundland and Labrador. The project will help put Atlantic Canada on the global stage as a leader in clean energy.
Quotes
"We are committed to reaching net-zero emissions by 2050 by prioritizing clean technology and energy leadership in Canada. The World Energy GH2 project is helping Canada become a top global supplier of hydrogen and will create good, sustainable middle-class jobs."
- Mary Ng, Minister of Export Promotion, International Trade and Economic Development
"Newfoundland and Labrador will be a global leader in clean energy. It will be the workers of our province who will sell hydrogen to the world and take home the profits. That's because of companies like World Energy GH2 and the workers who will make it happen."
- Seamus O'Regan Jr., Minister of Labour and Seniors
"Newfoundland and Labrador has the resources, the workers and the passion to lead the way to power Canada's renewable energy future. Working with partners like World Energy, we will get there."
- Gudie Hutchings, Minister of Rural Economic Development and Minister responsible for the Atlantic Canada Opportunities Agency
"Today's investment in World Energy GH2 will strengthen Canada's position as a leading supplier of clean energy and technology to the world. Through our offshore wind bill, C-49, we plan to unlock Newfoundland and Labrador's clean power potential while advancing our commitments under the Canada-Germany Hydrogen Alliance, announced in Stephenville. I congratulate World Energy and all those involved in this significant investment in Canada's green industrial future."
- Jonathan Wilkinson, Minister of Energy and Natural Resources
Quick facts
- The Hydrogen Strategy for Canada, released in December 2020, lays out an ambitious framework for actions that will position Canada as a world-leading producer, user and exporter of clean hydrogen and associated solutions in support of its net-zero emissions targets.
- Canada has committed significant financial and regulatory support for clean technologies such as hydrogen. Budget 2023 includes approximately $60 billion in new spending, of which investments and measures in clean technology account for almost $21 billion.
- The Government of Canada also put forward details of the Clean Hydrogen Investment Tax Credit in Budget 2023. Tax support varies between 15% and 40% of eligible project costs. Projects that produce the lowest carbon-intensity hydrogen receive the highest levels of support.
- Property that is required to convert clean hydrogen to clean ammonia is also eligible for the Clean Hydrogen Investment Tax Credit, at 15%.
- The Government of Canada's 2023 Fall Economic Statement announced that the Clean Hydrogen Investment Tax Credit was available from March 28, 2023.
