HALIFAX: Days after tasking a group with studying the potential impacts of green hydrogen production, the province announced support for the new industry.
In a press release issued on Sept. 20, the provincial government said it has set a target to offer leases for five gigawatts of offshore wind energy by 2030 to support the green hydrogen industry.
The province said leases for offshore wind development will be granted through a competitive bid process jointly managed by the provincial and federal governments, and the first call for bids will be in 2025. After reaching the five-gigawatt target, calls for bids will be based on “market opportunities,” they noted.
“I think it’s a good opportunity,” said EverWind Fuels CEO Trent Vichie. “I think there’s an opportunity for us to use some of that power to make green fuels at the site, so we’re encouraged by it.”
Although not dependent on offshore wind for energy, Vichie said this will help.
“What we can do is provide a world-class marine facility that has incredibly high capacity,” he noted. “It could help facilitate that investment so we’re supportive.”
The province said the most promising use for offshore wind energy is generating renewable electricity to produce green hydrogen for use in the province and for export. They said green hydrogen is a “clean alternative to fossil fuels” because it does not create greenhouse gas emissions and offshore wind is an option to help Nova Scotia and Canada meet future clean electricity needs.
The province explained that hydrogen is a gas that is produced by splitting water molecules into hydrogen and water, and when hydrogen is produced using renewable electricity, like wind power, it is called green hydrogen. They said green hydrogen is considered a clean, renewable source of energy because there are no greenhouse gas emissions when it is produced or when it is burned, and green hydrogen could also help industrial processes, heavy transportation and the marine sector get off fossil fuels faster.
In the same release, the province announced that it is developing a green hydrogen action plan to be released in 2023. They said the plan will outline the role green hydrogen can play in the transition to clean energy and the steps the government will take to build this industry, which will help Nova Scotia reach net-zero emissions by 2050.
“Today’s announcement further strengthens Canada’s role as a leader in renewable energy and provides a great opportunity for the marine industry in Nova Scotia,” noted Melanie Nadeau, CEO, Centre for Ocean Ventures and Entrepreneurship (COVE). “The government’s commitment to net-zero emissions by 2050 exemplifies that progress in the renewable energy sector is essential to the future of innovation, climate change and the economy.”
The province said Premier Tim Houston will attend the WindEnergy Hamburg and H2 Expo and Conference in Germany later this month to promote Nova Scotia as a secure source of clean, renewable energy for the world and to support the investment and development of the emerging green hydrogen market.
The province said Nova Scotia has multiple assets that combine to make the province a sought-after location for large scale green hydrogen production and export as one of the top three wind regimes in the world. They said the province has a uniquely large continental shelf that is ideal for floating and fixed wind platforms, a geographic advantage for international shipping, an experienced and competitive marine service and supply chain, academic researchers with expertise in clean technology, and a wealth of experience from the oil and gas industry.
Nova Scotia’s offshore wind industry will be developed in consultation with fishers, First Nations and other stakeholders, the province said, noting that it will also take into account the federal-provincial regional assessment for offshore wind that is currently underway.
The province said offshore wind projects will be administered by the current offshore petroleum regulator whose mandate will be expanded and name changed to the Canada-Nova Scotia Offshore Energy Board (from the Canada-Nova Scotia Offshore Petroleum Board), and the board will ensure offshore wind projects meet all safety and environmental requirements.
To deepen its understanding of the economic impact a large scale hydrogen production facility would bring to Nova Scotia, the provincial government announced earlier this month that NetZero Atlantic, on behalf of the Nova Scotia Department of Natural Resources and Renewables, will be conducting an investigation of the socioeconomic impacts of a facility in Point Tupper.
A press release issued by NetZero Atlantic on Sept. 16, noted that a large-scale hydrogen facility would include hydrogen production; the process of converting hydrogen to ammonia and storage/transport prior to shipping for global markets.
More specifically, NetZero Atlantic said the report will focus on infrastructure and services necessary and determine the socioeconomic impacts of both the construction and operational phases of such a project.
“Parts of the economy are inherently difficult to electrify and a widespread integration of variable renewables (i.e., wind and solar) must be managed closely to avoid grid instability and other intermittency issues,” the release stated. “One strategy that could help meet our clean energy goals and could diversify the economic base in Atlantic Canada is the adoption of low-carbon fuels, with hydrogen being one of the most promising options.”
Atlantic NetZero said the objective of the Request for Proposals is to obtain the services of a consultant to prepare a report that provides the provincial government with information necessary to deepen its understanding.
Department of Natural Resources and Renewables Communications Director Adèle Poirier explained her department provides funding to NetZero Atlantic to undertake research that is of mutual benefit.
“While we know that there is great global demand for green hydrogen, we would like to understand more about the value proposition for major hydrogen development projects, as well as labour and training needs, supply chain capacity/capabilities, and more,” she wrote via email. “The study is not for any one project or facility in particular. The information it pulls together will help us support and develop this promising industry in Nova Scotia.”
For his part, Vichie said the EverWind Fuels will provide employment and attract several billion dollars in investments, just in the first two phases of the project, as well as “a potential green fuel source to supply into the province.”
“And we’re ready to supply when the demand is there,” he told The Reporter. “Part of our project is solving the chicken and egg; you can’t have hydrogen applications without a hydrogen source. We stand ready.”
According to a Feb. 14 media release, NuStar Energy announced that it offloaded their 7.8 million-barrel storage terminal in Point Tupper to EverWind Fuels for $60 million. EverWind is a private developer of green hydrogen and ammonia production, storage facilities, and transportation assets.
Vichie said green hydrogen can take wind energy or solar energy and “turn it into a liquid fuel,” while ammonia lifts the production of agriculture roughly by two times, and today is being produced from natural gas.
Vichie said the Strait area can play a “huge role” in de-carbonizing the provincial and national economy. EverWind said it intends to expand and develop the Point Tupper site to be the location of a regional green hydrogen hub for Eastern Canada.
Vichie said the site in Point Tupper has an existing ice-free, deep-water port with 27-meter depth and two berths which are capable of accommodating the largest vessels in the world. The port is the deepest in Nova Scotia and the surrounding region.
In addition, the company said the Point Tupper site has existing rail loading facilities and is adjacent to pipeline networks to support domestic and regional markets. Electricity transmission is available at the site as well as 7.7 million barrels of liquids storage and abundant freshwater, which is adjacent to the site, they said.
EverWind pointed out that the site is operated by a highly qualified, 70-person team trained to protect the surrounding environment and deliver safe operations.
Vichie said the company will establish a steering committee with members of the community, and will have a very open door, with safety and environmental issues of paramount importance.
As part of a staged development, EverWind Fuels also intends to partner with offshore wind developers to further expand production over time.
In a May 5 media release, it was announced that Buckeye Partners entered into an agreement to acquire Bear Head Energy in Point Tupper.
Richmond Municipal Council issued a letter of support for the project in 2021 and Warden Amanda Mombourquette told The Reporter the project, which was once looking to produce and export liquefied natural gas, is now set to produce and export green hydrogen and green ammonia.
The Bear Head project is fully permitted, and unique in eastern Canada with all project approvals and permits necessary for construction in place, placing it at a significant advantage, Buckeye Partners noted, pointing to Nova Scotia’s unique geographical characteristics which give it the potential to become one of the most productive renewable and green energy development areas in the world.
Buckeye Partners said it is their intention to develop a large-scale energy production, distribution and export hub that will offer customers lower-carbon energy solutions, including LNG or other green fuels, added CEO Todd J. Russo.