Canadian-French duo to work on $8 bln green hydrogen and ammonia project in Newfoundland

French low-carbon energy company EDF and Canada’s energy transition developer Abraxas Power have agreed to jointly develop a green hydrogen and ammonia project in Central Newfoundland, Canada.

To this end, the companies have entered into strategic development agreements for the $8.5 billion Exploits Valley Renewable Corporation (EVREC) project that anticipates generating around 200,000 tons of green hydrogen and approximately 1 million tons of green ammonia annually.

The power-to-X (P2X) project envisions up to 3.5 GW of onshore wind capacity with associated energy and molecular storage to power green hydrogen and ammonia production, with its own dedicated port infrastructure to export produced ammonia and hydrogen to global markets.

Under strategic agreements, EDF and Abraxas will develop the project as equity partners. The goal is to reach a final investment decision (FID) in 2026 and complete construction from 2026 to 2030.

Once operational, it is anticipated that the EVREC project will offset over 1.5 million tonnes of CO2 every year, and contribute over CAD$5 billion (around $3.5 billion) to Newfoundlanders through remittances to the provincial budget as well as various stakeholder benefit agreements over the project’s lifetime.

In addition, the project is expected to add hundreds of new, highly skilled and long-term jobs to central Newfoundland.

Beatrice Buffon, Group Senior Executive Vice-President, EDF International Division, CEO of EDF Renewables, commented: “We are proud to join our partner Abraxas within the EVREC Project which demonstrates strong competitive advantages in the global green hydrogen and ammonia market. With its Hydrogen Plan, EDF is supporting the energy transition with decarbonization solutions in the sectors that emit the most CO₂. EDF has been one of the leading renewable energy companies in North America for more than 35 years and has been present in Canada since 2008. We look forward to cooperating with all Canadian stakeholders and our partner to bring this project to fruition.”

Abraxas submitted the environmental assessment registration with the Department of Environment and Climate Change of the Government of Newfoundland & Labrador for the EVREC project in October this year.

The project was awarded access to over 300 square kilometers of crown lands by the province of Newfoundland and Labrador in 2023 and has so far been advanced through pre-construction activities which include environmental data collection, resource measurement, and public consultations.

Colter Eadie, CEO of Abraxas and EVREC, said: “We are thrilled to announce this transaction with EDF as we continue to advance the development of the EVREC project. The arrangements with EDF further support our commitment to advancing the energy transition and supporting Newfoundland and Labrador’s green future.

“With the global experience of one of the world’s largest energy companies, we are well-positioned to move forward with a project that is not only expected to drive economic growth in the region but is also expected to make a significant impact on reducing carbon emissions. EVREC represents a transformative step towards a sustainable energy economy, and we are excited to lead the way in delivering green hydrogen and ammonia to global markets, creating lasting benefits for Newfoundlanders and the environment.”