International interest over Newfoundland’s hydrogen potential worries some experts

Environmentalists worry the Newfoundland and Labrador government is moving too fast and trying to capitalize on renewable energy at all costs.

As Germany turns to Canada for energy, all eyes are on a cluster of small western Newfoundland towns that could soon be home to two massive wind-powered hydrogen and ammonia projects.

But there is skepticism among observers. Environmentalists worry the provincial government is moving too fast and trying to capitalize on renewable energy at all costs. Others say they feel uncomfortable with the close ties between the premier of the province and a wealthy businessman backing one of the proposals.

“I think we need a complete reimagination of how we advance energy transmission, production and distribution in Newfoundland and Labrador, and focus on how we can return benefits to communities and not just to corporations,” Nick Mercer, a post-doctoral researcher with Dalhousie University who has worked with northern communities on sustainable energy development, said in a recent interview.

“We all know this is one of the windiest places in the world. But we can’t just give it away for nothing.”

News that Prime Minister Justin Trudeau and German Chancellor Olaf Scholz will be in Stephenville, N.L., on Tuesday to sign a hydrogen energy agreement has thrown Newfoundland into the spotlight.

While details of the agreement haven’t been released, Germany has been clear it is keen to find new sources of energy after Russia’s invasion of Ukraine. The war has led to a surge in natural gas prices, and to Russia threatening Germany’s energy supply. Germany typically gets about half of its natural gas from Russia and is looking for both short and long-term solutions to wean itself from Russian exports.

Newfoundland and Labrador, meanwhile, is home to some of the strongest winds in Canada. In April, the provincial government lifted a moratorium on wind development, throwing open the doors for large-scale projects. Two green hydrogen projects, pitched for the region surrounding Stephenville, would put western Newfoundland at the forefront of Canada’s renewable energy transition.

The newest proposal is led by Australia-based Fortescue Future Industries and details about the project are scarce. The company said Thursday it filed paperwork with the province for a hydrogen and green ammonia production plant, a liquid ammonia marine export terminal and wind power facilities. That paperwork has not yet been made public.