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On eve of Canada's green energy pact with Germany, N.L. wind farm project awaits approval

Tuesday's high-profile signing of an agreement to sell Canadian-made hydrogen to Germany is intensifying the spotlight on a proposed wind-to-hydrogen development project in western Newfoundland that could supply some of that hydrogen.
Prime Minister Justin Trudeau, left, is greeted by German Chancellor Olaf Scholz as he arrives at the Chancellery in Berlin in March. (Adrian Wyld/The Canadian Press)

Tuesday's high-profile signing of an agreement to sell Canadian-made hydrogen to Germany is intensifying the spotlight on a proposed wind-to-hydrogen development project in western Newfoundland.

World Energy GH2 has proposed a wind farm and green hydrogen plant on Newfoundland's west coast that could provide some of the renewable energy Germany needs,but it hasn't been approved yet and must undergo an environmental assessment before it gets the green light.

On the eve of the agreement's signing by Canadian Prime Minister Justin Trudeau and German Chancellor Olaf Scholz in Stephenville, on Newfoundland's west coast World Energy chair John Risleysays if the project's wind turbines are not approved, the project will not go ahead.

"Newfoundland Hydro does not have the generating capacity to supply the hydrogen plant," Risley said Monday.

The company proposes to build 164 wind turbines on the Port au Port Peninsula, which would generate one gigawatt of electricity, in its first phase, to power a0.5-gigawatt hydrogen and ammonia production facility in the Stephenvillearea. If approved, the company says, it willbe the first project in the country to produce hydrogen and ammonia from renewable wind energy.

The provincial government said Aug. 5 that the project mustdeliveran environmental impact statement that provides information about where the turbines will be located, and what their effect will beon animals, plantsand waterways

The top of a wind turbine is seen with blue sky and clouds in the background.
These wind turbines near Assiniboine, Sask., stand 110 metres tall with each blade spanning 47 metres. Turbines proposed for the wind farm on the Port au Port Peninsula will stand 200 metres tall. (Matt Duguid/CBC)

The project has drawn criticism from some locals who are concerned about what the project's environmental impact willbe. Risley acknowledged thereare environmentalissues with wind farmsbut said the company aimsto lessen them.

"The purpose of the environmental study that is underway as we speak is to identify where those impacts are the most likely to occur and what we can do to mitigatethat impact. We don't want to go in there and do all kinds of environmentally irresponsible things," he said.

Risley says the agreement between Canada and Germany is important and signifiesCanada's support for its allies in Europe.

"This is, as I say, a national imperative and both governments would like to see this happen," Risley said.

A long list of high-profile German business leaders will also be at Tuesday's hydrogen trade show, with CEOs from Bayer, Siemens Energy, Volkswagen, Mercedes-Benz, the Hamburg Port Authority and others visiting Stephenvillefor Tuesday's signing.

In this map of the proposed wind farm project on the Port au Port Peninsula, each red dot represents a wind turbine. (Government of Newfoundland and Labrador)

As the war in Ukraine drags on and Russia cuts gas exports to Europe, Germany is searching for new energy sources to heat homes and power industry. Risley says that's not the only thing people should be concerned about.

"There's also another war about which we should be very conscious and that's the war that the world is having with changing climate," he said, citing extreme weather events like fires, drought and heat waves. "We do know that we are definitely losing the war against climate."

Risleysays his project will help by offsetting carbon emissions.

"This project will offset all the emissions from every single car, truck, ferry, lawnmower, snowmobile and four-by-four in Newfoundland and Labrador," said Risley. "So every day that this project is not built, then that's a day when all the emissions from all of the above continue to impact on the world's climate."

N.L. 'perfectly placed'

Provincial Natural Resources Minister Andrew Parsons on Monday called Canada and Germany's agreement symbolic. While he said he's not aware of everything in the federal memorandum of understanding, he said he wants the German business leaders visiting to know the province is open for business.

"We have the best resource in the world, we have the best geography for this, we have a number of factors that come together to put us at the forefront of this opportunity," said Parsons.

Parsons said the provincial government has been fielding interest from about a dozen companies interested in developing wind power in Newfoundland and Labrador since lifting a ban on the generation and exportation of wind energy in April, which had been in place since 2007.

A wind turbine is pictured in Heinsberg, Germany. Renewable energy accounts for about 40 per cent of electricity generation in Germany. (Oliver Berg/The Associated Press)

Newfoundland and Labrador is known for its offshore oil projects and reserves, and Parsonssayswind and hydrogen production won't eclipse that industry any time soon.

"But given the fact that we're rich in multiple commodities, renewable and non-renewable, I think it bodes well for us as a province," he said.

Read more from CBC Newfoundland and Labrador

With files from CBC Newfoundland Morning