Korean company invests $50M US in World Energy's Newfoundland hydrogen plan

A subsidiary of South Korean company SK Group hassigned a $50 million US ($67.3 million Cdn) deal with World Energy GH2 to buy a minority stake in a controversialgreen hydrogen project plan on Newfoundland's west coast.

Under the deal, SK Ecoplant will acquire a 20 per cent stake inthe first stage ofWorld Energy's Nujio'qonik project on the Port au Port peninsula.

The company wants to build a massive, multibillion-dollar wind-hydrogen project, which would include 164 wind turbines powering a hydrogen and ammonia plant in Stephenville.

The deal comes at the same time the provincial government is working to sell Newfoundland and Labrador internationally as a hydrogen powerhouse.

Energy Minister Andrew Parsons and Premier Andrew Furey werein the Netherlands last week, shopping the province to major players in Europe's emerging hydrogen market.

Canada and Germany signed an agreement to build a new hydrogensupply chain across the Atlantic last year.

But opponents of the project say they're concerned about unintendedconsequences for the area's plants, animalsand water systems.

A group of protesters arefighting an injunction issued after they blocked access to one of the project's work sites.

The companies say SK Ecoplant will to be an important partner inthis project, thanks to its expertise in green hydrogen andengineering.

World Energy GH2 chairman John Risley called the investmentvalidation that the company has all of the requirements for asuccessful project.

The project is currently in the provincial environment assessment stage, and its opponents are pushing Ottawa to subject it to a federal environmental assessment.

The company is also still involved in Crown Lands application for the site it wants to use.

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