Come By Chance refinery owners seeking proposals for green hydrogen project - Action News
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Come By Chance refinery owners seeking proposals for green hydrogen project

A refinery on Newfoundland's Avalon Peninsula is seeking to become the largest user of green hydrogen in Canada, and is seeking a partner to make it happen.

Braya Renewables requires 35,000 tonnes annually, with potential for exports

The Come By Chance refinery, pictured in September 2021, is being converted to produce renewable fuels by a new owner, Braya Renewable Fuels. (CBC)

All the hype surrounding the development of a green hydrogen industry in Newfoundland and Labrador has so far focused on export markets to places like Germany, but the owners of a renewable fuels refinery in Placentia Bay wantto change the conversation.

The leadership at Braya Renewable Fuelssays the companycan become the largest user of green hydrogen in Canada, and is seeking a partner to help make it happen.

"We are looking forward to a project that brings not just the lowest costhydrogen to us, but the best opportunity for us to partner and really bring something special to the community," Braya CEO Frank Almaraz told CBC News on Tuesday during a phone interview from Dallas.

An extensive conversion project is underway at the refinery, and the new company hopes to begin producing what's called second-generation biofuels renewable diesel and sustainable aviation fuelmade fromplant-based waste oils and animal fats early next year.

These fuels are chemically identical to the petroleum products they replace, but are not blended with petroleum-based fuels and, as a result, have alower carbon footprint.

The process will require large quantities of hydrogen up to 35,000 tonnes annually.

Brayahas a ready supply of what's known as "grey" hydrogen, which is created from butane gas and generates greenhouse gases.

But in order to lower emissions even further and be a more attractive option to environmentally conscious customers, Brayawants to use hydrogen derived from a renewable energy source, such as wind.

So Brayahas issued a request for proposals for companies interested in developing a green hydrogen project adjacent to its Come By Chance refinery.

Frank Almaraz is the chief executive officer with Braya Renewable Fuels. The company is converting the Come By Chance refinery into a producer of renewable fuels. (Braya Renewable Fuels)

It's just the latest of many proposed wind energy projects in the province since a moratorium on such developments was lifted last spring. In early October, the provincial government announced it received 31 land nomination submissions for windenergy projects. A competitive call for bids for the use of Crown land is scheduled to launch on Dec. 15.

"We're working quickly in order to be cognizant of the Crown lands sale process," said Almaraz.

The company wants to entice a partner to develop a wind-to-hydrogen project by offering itself as a long-term, stable customer, withthe option of scaling up the project in order to supply what is expected to be a massive export marketfor green hydrogen in the coming years. The company is also touting the availabilityof fresh water, port facilities and other infrastructure as a drawing card for potential partners.

"We want to buy 35,000 tonnes a year at the lowest cost possible, but we think the strategic opportunity for the region, for our company, for the province and for our partner, is much greater than that," said Almaraz.

Brayaalso has a "willingness and ability" to invest in the capital cost of the project, added Almaraz,"toscale green hydrogen and green ammonia production, storage, and handling to serve a larger market audience."

Braya is offering up 80 acres of refinery land on which a joint hydrogen and ammonia plant can be established. The successful proposal is also expected to include a large wind energy project, which would require large amounts of government-owned land.

"It is the most likely case that one of our partners, the selected partner, will participate in the Crown lands process," said Almaraz.

The refinery has a long and checkered history of refining oil into various fuels, but it closed in early 2020 after commodity markets cratered in response to the arrival of the COVID-19 pandemic.

A U.S. private equity firm called CrestaFund Management bought a controlling stake in the refinery 11 months ago, and rebranded the company from North Atlantic Refining to Braya Renewable Fuels.

Construction was temporarily halted on Sept. 2 after a flash fire injured eight workers at the refinery. One of the workers, Clarenville resident Shawn Peddle,died from his injuries on Oct. 15.

Braya plans to market its products to the heavy transport and aviation sectors.

The deadline for proposals is Dec. 19.

Read more from CBC Newfoundland and Labrador