The Honourable Andrew Parsons, KC, Minister of Industry, Energy and Technology, today announced the completion of the call for bids for wind-hydrogen development in the province. As a result of this process, four companies will receive Wind Application Recommendation Letters:
- EverWind NL Company;
- Exploits Valley Renewable Energy Corporation;
- Toqlukuti’k Wind and Hydrogen Ltd. (ABO); and
- World Energy GH2 Inc.
The issuance of recommendation letters to four bidders is the next step in the development of a wind-hydrogen industry in the province. These four companies now have the right to pursue the development of their project and can proceed through the Government of Newfoundland and Labrador’s Crown land application and approval process.
The construction, operations and decommissioning phases of these four projects (ranging from 35 to 40 years) are anticipated to have an overall economic impact (GDP) of $206.2 billion, and revenue to the province of $11.7 billion. Based on the plans for the four projects, peak employment is estimated at 11,694 full-time equivalents during construction. Total capital spend is estimated at $66.3 billion.
Projects will be required to have benefits plans with the province, including commitments to full and fair opportunity as well as a gender equity and diversity plan that outlines proactive measures for the inclusion of women and other under-represented groups.
Bids were subject to a two-phase assessment conducted by an evaluation committee, with representation from Industry, Energy and Technology; Finance; Indigenous Affairs and Reconciliation; Newfoundland and Labrador Hydro; a third-party Financial and Business Analyst (EY); a third party Technical Advisor (Power Advisory); a third party Project Management Analyst (EY); and a Fairness Advisor (Optimus SBR Inc.).
Environmental Assessment registration is required prior to final award of Crown land and an environmental assessment will be required for these wind projects.
Requests for connection to the provincial electricity grid to support hydrogen production and/or rates other than published rates will be subject to the PUB regulation.
The Provincial Government is committed to continuing to work with the companies that were not successful in this round and they will have opportunities in the future to apply, either through private lands or future calls for bids.
Quote
“Newfoundland and Labrador has some of the best onshore wind resources in North America, which can be used to power wind turbines and generate electricity for industrial users/customers, export through transmission lines and the production and export of hydrogen/ammonia. I am pleased that these four projects have been independently reviewed and determined to provide the overall greatest benefits to the province. I look forward to these projects moving through the next stages of review and am excited about the economic benefits these projects will bring to the province in the years to come.”
Honourable Andrew Parsons, KC
Minister of Industry, Energy and Technology
-30-
Learn more
Renewable Energy Plan: Maximizing Our Renewable Future
Follow us on Twitter @GovNL and @IET_GovNL
Like us on Facebook
BACKGROUNDER
Wind-Hydrogen Development Timeline
On December 16, 2021, the Provincial Government launched a Renewable Energy Plan, titled ‘Maximizing Our Renewable Future.’ The plan was developed with input from the public, Indigenous Governments and Organizations, industry and stakeholders.
On April 5, 2022, the Provincial Government lifted a 15-year moratorium on onshore wind farms, creating an opportunity for industrial customers to generate wind energy for their own consumption and wind generation export.
On July 26, 2022, the Provincial Government announced that as part of the multi-stage process, and in order to ensure a fair and transparent process for all interested parties, the Department of Industry, Energy and Technology would launch a call for the submission of Nominations of Areas of Interests for wind energy projects in the province. The call was open to any available Crown lands within the province. Nominations began on July 26, 2022 and closed on October 1, 2022.
On October 3, 2022, the Provincial Government announced that 31 land nomination submissions were received for wind energy projects. The Provincial Government began a detailed assessment to determine which land packages would be made available for the first round of the competitive land bid process.
On December 14, 2022, the Provincial Government announced the launch of a Crown land call for bids for wind energy projects. Bids were accepted until midnight on March 3, 2023. A Phase 1 review would be conducted on all bids on criteria such as ensuring the companies have experience, financing, etc. Those companies passing Phase 1 review would proceed to the next phase beginning early April 2023.
On February 23, 2023, the Provincial Government released a new wind-hydrogen fiscal framework for Newfoundland and Labrador. The fiscal framework will be applicable to wind-hydrogen projects in the province and will ensure that the Provincial Government receives benefits for the use of its resources from wind-hydrogen projects. The fiscal framework includes a Crown land reserve fee of 3.5 per cent annually of the market value of the reserved Crown Lands.
On March 24, 2023, the Provincial Government provided an update on bids received from its call for bids for Crown land for wind-hydrogen development. The department received bids from 19 companies. A Stage One review would be conducted on complete bids on criteria such as the bidder’s experience, the project, and their financial capacity to plan, construct, and operate the proposed project. Those companies passing Stage One review would proceed to the next phase beginning May 2023.
On July 6, 2023, the Provincial Government provided an update on the completion of stage one of the crown land call for bids for wind-hydrogen development in the province. Following a Stage One review, including criteria such as the bidder’s experience and their financial capacity to plan, construct, and operate the proposed project, nine bids from nine companies were approved to proceed to Stage Two.
The Stage Two review included a deeper examination of the bidder’s experience, the proposed project, and the project financing plan, as well as an examination of additional information on the electricity grid connection requirements, community and Indigenous engagement, and benefits to the province.
Following the completion of the Land Bid process, four companies are receiving Wind Application Recommendation Letters:
- EverWind NL Company
- Exploits Valley Renewable Energy Corporation
- Toqlukuti’k Wind and Hydrogen Ltd. (ABO)
- World Energy GH2 Inc.
EverWind NL Company (EverWind) is proposing a multi-phase wind energy project to produce and export hydrogen/ammonia from facilities on the Burin Peninsula.
Exploits Valley Renewable Energy Corporation (EVREC) is proposing a multi-phase wind energy project in central Newfoundland and a hydrogen/ammonia production facility in Botwood to produce and export green hydrogen/ammonia.
Toqlukuti’k Wind and Hydrogen Ltd. (ABO) is proposing a three-phase wind energy project in the Isthmus region to produce and export hydrogen/ammonia with Braya Renewable Fuels through the joint development of green hydrogen production at the Come-By-Chance refinery.
World Energy GH2 Inc. (WEGH2) is proposing a three-phase wind energy project on the province’s west coast and a hydrogen/ammonia production facility in the Town of Stephenville to produce and export green hydrogen/ammonia.